Study on Comparative Analysis of Captial Structure of Prominent Banks in India
Year: 2025
Type: article
Abstract: The capital structure of a bank plays a crucial role in determining its financial health, profitability,and ability to manage risks. This project focuses on the comparative analysis of the capital structureof five leading banks in India: HDFC Bank Ltd, ICICI Bank Ltd, Axis Bank, Kotak MahindraBank, and IDBI Bank. These banks represent a mix of private and public sector institutions, eachwith unique financial strategies and market positions.The study explores the components of capital structure, including debt, equity, and retainedearnings, to evaluate how these banks finance their operations and achieve their growth objectives.Key financial ratios such as the debt-to-equity ratio, capital adequacy ratio, and are analysed to understand the level of leverage and the balance between risk and returns for each bank.Theproject also considers regulatory requirements, particularly the Basel norms, which influence thecapital structure decisions of banks in India.Through this analysis, we aim to uncover patterns and differences in how these banks’ structuretheir capital to optimize profitability while maintaining stability. For instance, private sector banks like HDFC Bank and ICICI Bank are known for their efficient capital management and robust profitability, while public sector banks like IDBI Bank often face challenges due to higher levelsof debt and non-performing assets.Kotak Mahindra Bank and Axis Bank fall in between, withtheir capital strategies reflecting a blend of caution and growth orientation. This comparative studyhighlights the advantages and drawbacks of different capital structures, offering insights into thefinancial resilience of these banks in a competitive and regulated environment.
Authors: B. Lalith kumar, Dr. N. Ramanjaneyulu
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411520229