A Study On Profitability And Operational Efficacy Private Banks

Abstract

The term profit has already been discussed at length in detail. The term ability indicates the power of a firm to earn profits. The ability of an enterprise also denotes its earning power or operating performance. Also, that the business ability points towards the financial and operational ability of the business. So, on this basis profitability may be defined as ?the ability of a given instrument to earn a return from its use"' Weston and Brigham defines profitability as "the net surplus of a large number of policies and decisions." Profit being an absolute figure fails to indicate the adequacy of income or changes in efficiency resulting from financial and operational performance of an enterprise. After conducting the project on profitibility and operational efficiency of HDFC Bank Ltd., it is found that there is a huge possibility for the bank to enhance there business. The Bank has reported another successful performance, underpinned by healthy growth of both business and revenues. The Bank continue to have a fairly well-diversified customer base that spans both the retail and corporate banking space.  In addition to creating infrastructural capabilities for the future. The bank have launched several other initiatives to fulfill product and service needs of our customers including the launch of an online-broking portal through our wholly-owned subsidiary. The infrastructure business size has grown well, in line with our expectations and this augurs well for the future, infrastructure being critical to the countrys growth.