View of PERFORMANCE APPRAISAL OF HOUSING DEVELOPMENT FINANCE CORPORATION LTD. (HDFC BANK)

(1)

ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING

Peer Reviewed and Refereed Journal IMPACT FACTOR: 2.104(INTERNATIONAL JOURNAL) UGC APPROVED NO. 48767

Vol.03, Issue 08, August 2018, Available Online: www.ajeee.co.in/index.php/AJEEE

1

PERFORMANCE APPRAISAL OF HOUSING DEVELOPMENT FINANCE CORPORATION LTD. (HDFC BANK)

Neelam Chakrawarti, Research Scholar, Jayoti Vidyapeeth Women’s University, Jaipur

Dr. O.P.Gupta, Professor,

Jayoti Vidyapeeth Women’s University, Jaipur

Abstract- The banking sector as service sector, and as one of the components of financial system, plays an important role in the performance of any economy. Banking institutions in our country have been assigned a significant role in financing the process of planned economic growth. The efficiency and competitiveness of banking system defines the strength of any economy. Indian economy is not an exception to this and banking system in India also plays a vital role in the process of economic growth and development. The study is to evaluate the monetary execution of HDFC Bank. The fundamental goals of the study are to review the financial performance of HDFC Bank. The study covers the time of 5 years i.e. from year 2012-13 to year 2016-17. Proportion examination was connected to dissect and think about the patterns in managing an account business and monetary execution.

For example: Credit Deposit Ratio, Interest Expenses to Total Expenses, Interest Income to Total Income, Other Income to Total Income, Net Profit Margin, Net worth Ratio, Percentage Change altogether Income, Percentage Change altogether Expenditure, Percentage Change in Deposits, and Percentage Change in Advances. Mean, Standard Deviation, Standard Error, Coefficient of Variance and Compound Annual Growth Rate (CGR) have been utilized to explore the patterns in saving money business efficiency.

Keywords- Performance appraisal, growth, participation, private sector banks 1. INTRODUCTION

The term performance actually mean employees are performing well when they are productive. Efficiency implies both disquiet for effectiveness and efficiency, effectiveness refers to goal achievement.

However it does not speak of the costs incurred in reaching the goal. That is where efficiency comes in. Efficiency evaluates the ratio of inputs consumed to outputs achieved the greater the output for a given input, the greater the efficiency. In addition to productivity as measured in terms of usefulness and efficiency, performance also includes personnel data such as measures of accidents, turnover, absences, and tardiness. Appraisals are judgments of the characteristics, traits and performance of others. On the basis of these judgments we assess the worth or value of others and identify what is good or bad. In industry performance appraisal is a systematic evaluation of employees by supervisors. Employees also wish to know their position in the organization.

Appraisals are essential for making many organizational decisions selection, training, promotion, transfer, wage and salary administration etc.

This bank was established on August 1994 by the name of HDFC Bank

Limited. The head office of this bank is registered Mumbai India. In 1995 the bank started its operations as a Scheduled Commercial Bank. This is a no 1 bank in private sector which is available over 1416 branches around over 550 cities across India. All the branches of this bank are associated on online real- time basis software. The customers in over 500 locations are also serviced through Telephone Banking. Banking Sector an Introduction 22 The bank also has a network of about over 3382 networked ATMs across these cities. This bank offers an extensive assortment of commercial and transactional banking services and treasury products to their wholesale and retail customers. The bank is divided into remittances, investments and insurance loans payment services.

Apart from these services, the bank is also engaged in corporate banking services, small & medium enterprises services, financial institutions & trusts services and government sector. This bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master card and expert debit card to their customers.

(2)

2 1.1 Objective Of The Study

To study the performance appraisal criteria at Housing Development Finance Corporation Ltd (HDFC) Bank

2. SAMPLE BANKS 2.1 Private Sector Banks

The private sector banks in India represent part of the Indian Banking Sector that is made up of both private and public sector banks. The Private sector banks are the banks where greater parts of the stake or equity are held by the private shareholders not by government.

2.2 Housing Development Finance Corporation Ltd. (HDFC)

The bank was established on 30 August 1994 in the name Housing Development Finance Corporation Ltd. (HDFC). This was the first bank who received the approval of RBI regarding its establishment in the private sector. On 16 Jan 1995, the bank opened its first branch in Mumbai (Church gate). In 1997 this bank became the largest mobilize of the put on the market deposits through the network of its 20 branches. HDFC was attached up with the Ahmadabad stock exchange in 1998 to act as its clearing bank. There after it opened 2 new branches in Calcutta. HDFC has signed an agreement with the National Stock Exchange (NSE) which gave it a second charge over the broker’s deposits for providing loan against share facility to the NSE brokers. HDFC opened it’s another branch in Aurangabad in the year 2001.

Later, it entered into an alliance with the Clearing Corporation of India Ltd. (CCIL) in the year 2004. Andhra Bank entered into an agreement with HDFC for sharing its network of computerized Teller Machine (ATM’s). In 2012, it started services in rural areas and opened its 67 branches in Punjab and Haryana in a single day. At present it is working with more than 230 branches in 184 cities.

 Financial performance of HDFC Bank

 Deposits and advances-

Table 1 Deposits and Advances of HDFC Bank in past two years

Ba

nk Deposits (in cores) Advances (in cores)

HD

FC 36733

7.48 45079 5.65 +22

.72 30300

0.28 36549 5.04 +20

.63

Source: HDFC Bank Annual Report 2014- 15 HDFC Bank’s total deposits were 367337.48 cores in 2014 and it amplified to 450795.65 cores in 2015, which shows a growth rate of 22.72%. On the other hand the advances in 2014 and 2015 were 303000.28 cores and 365495.04 cores respectively, which show the growth rate of 20.63%.

2.3 Rationale Of The Study

The development function performance appraisal act as the process of obtaining, analyzing and recording information about an employee to improve and evaluate their performance. The research is based on the study of the performance appraisal in banks there by will be helpful for accepting the probability of performance appraisal systems in banking industries.

3. RESEARCH METHODOLOGY

In the present study, an attempt has been made to measure the financial performance of HDFC Bank. The study is based on secondary data that has been collected from annual reports of the respective banks, magazines, journals, documents and other published information. The study covers the period of 5 years i.e. from year 2012-13 to year 2017-18. Ratio investigation was applied to evaluate the trends in banking business and financial performance such as Credit Deposit Ratio, Interest Expenses to Total Expenses, Interest Income to Total Income, Other Income to Total Income, Net Profit Margin, Net worth Ratio, Percentage Change in Total Income, Percentage Change in Total Expenditure, Percentage Change in Deposits, and Percentage Change in Advances. Mean, Standard Deviation, Standard Error, Coefficient of Variance and Compound Annual Growth Rate (CGR) have been used to analyze the trends in banking business profitability.

(3)

3 3.1 Hypothesis:

Ho1: There is no significant at Housing Development Finance Corporation Ltd (HDFC) Bank on performance appraisal criteria.

3.2 Data Collection:

Achieving the objective of this study and to behavior the investigation, data has been collected from secondary data sources:-

Secondary Data: Secondary data has been collected through Books, Journals, and Research papers, Websites, Articles and Newspapers.

Data Analysis: The researcher has examined the completed questionnaires.

The information for each item on the questionnaire has been processed and reported through an expressive narrative.

These have been accomplished by use of frequencies. The results have been presented in charts, graphs and tables.

Quantitative and Qualitative examination techniques have been applied. Tabular

presentation of the data has been made.

The data collected from secondary sources were analyzed by using appropriate mathematical & statistical tools such as Percentage, Average, and X 2 - test etc.

4. CONCLUSION

The current study and discussions there on certainly reveals that financial performance of HDFC Bank. The studies HDFC Bank financial performances of HDFC Bank are good.

REFERENCE

1- Yadav, M. A. (2016). A study on performance appraisal system at HDFC Bank Lucknow. Lucknow: Ms. meetu Pandey.

2- file://C:/Users/admin/Documents/publice

%20paper/12_chapter%205.pdf

3- http://www.fao.org/docrep/w7505e/w750 5e06.htm

4- www.hdfc bank.com

5- https://en.wikipedia.org/wiki/Performance -appraisal