Thus there is huge contrast between the Return on Equity of HDFC, ICICI, AXIS, YES and Kotak Mahindra banks.
Net overall revenue (NPM): Net Profit Margin is equivalent to total compensation or benefits partitioned by all out income, and speak to how a lot of benefit every dollar of offers produces. Net overall revenue communicates the proportion of net benefits to incomes for an organization. The net overall revenue represents the amount of every dollar gathered by an organization as income is changed over into benefit.
NPM = Net Income/Revenue
Table 3 – Net Profit Margin ( NPM in % )
HDFC ICICI AXIS YES KOTAK MAHINDRA
2014 20.61 22.30 19.20 16.1 20.6
2015 21.07 22.30 20.50 17.3 22.9
2016 20.41 17.20 20.80 18.7 17
2017 20.99 16.70 20.20 20.3 22.1
2018 21.79 12.40 8.8 20.8 24.7
Normal 20.97 18.18 17.9 18.64 21.46
SOURCE: http://equitymaster.com
Translation: From Table 3, it very well may be seen that Kotak Mahindra has the most noteworthy NPM of 21.46, which suggests that for each INR 100 the bank has earned INR 21.49. The HDFC bank follows the
Kotak Mahindra with NPM of 20.97. The NPM of Kotak Mahindra has expanded enormously when contrasted with other chose banks.
Table 4 – One Way ANOVA for NPM
ANOVA
Wellspring of Variation SS df MS F P-esteem F crit
Between Groups 55.1617 4 13.79042 1.22105 0.333243 2.866081
Inside Groups 225.878 20 11.2939
Complete 281.04 24
Aftereffect of Hypothesis testing:
From the table 4, as the determined worth 1.22105 is lower than the basic worth 2.866081 at 5% level of hugeness, the invalid speculation is acknowledged. Subsequently, there is no noteworthy contrast between the Net Profit Margin of HDFC, ICICI, AXIS, YES and Kotak Mahindra banks.
Profit for resources (ROA): Return on resources shows how beneficial an organization is comparative with its absolute resources. ROA gives any financial specialist a manual for assess how productive an organization’s administration is utilizing its advantages for create income. Profit for resources is shown as a rate
ROA = Net Income/Total Assets
Table 5 – Return on Assets ( ROA in %)
HDFC ICICI AXIS YES KOTAK MAHINDRA
2014 1.72 1.5 2
2015 1.73 1.5 1.6 1.5 2
2016 1.73 1.1 1.6 1.5 1.4
2017 1.68 1 1.5 1.4 1.8
2018 1.64 0.7 0.6 1.4 1.8
Normal 1.35 1.16 1.36 1.46 1.8
SOURCE: http://equitymaster.com
Understanding: From the table 5, we can decipher that Kotak Mahindra bank has the best yield on resources esteem with 1.8% , followed by Yes manage an account with 1.46%. The most steady bank regarding ROA is Kotak Mahindra bank.
Table 6 – One Way ANOVA for ROA
