A COMPARATIVE STUDY OF FINANCIAL STATEMENT OF ICICI AND HDFC THROUGH RATIO ANALYSIS MANISH ROY TIRKEY 1 & SHABAN. E. A. SALEM 2 1 Assistant Professor, Sam Higginbottom Institute of Agriculture Technology and Sciences, Allahabad, Uttar Pradesh, India 2 Research Scholar, Sam Higginbottom Institute of Agriculture Technology and Sciences, Allahabad, Uttar Pradesh, India ABSTRACT This study is conducted purely based on secondary data obtained through website of the specified private banks. By using the ratio analysis tool we can analyse the performance of both the banks and we can easily find out the strength and weakness of the banks and their position in the market. Different ratios are used in this study and particularly those which are related to the financial statement for this purpose balance sheet of 2009-2012 of both the banks are used and from them ratios are calculated so according to which we can easily compare the banks performance and tell which private banks grow faster and whose position is better than the other one. After comparing the financial position it is clear that position of ICICI is much better than the HDFC. KEYWORDS: Banks, Balance Sheet, Companies, Ratio Analysis INTRODUCTION Ratio analysis is such a significant technique for financial analysis. It indicates relation of two mathematical expressions and the relationship between two or more things. Financial ratio is a ratio of selected values on an enterprise's financial statement. There are many standard ratios used to evaluate the overall financial condition of a corporation or other organization. Financial ratios are used by managers within a firm, by current and potential stockholders of a firm, and by a firm‘s creditor. Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. Essence of Ratio Analysis Financial ratio analysis helps us to understand how profitable a business is, if it has enough money to pay debts and we can even tell whether its shareholders could be happy or not. Financial ratios allow for comparisons:  Between companies  Between industries  Between different time periods for one company  Between a single company and its industry average To evaluate the performance of one firm, its current ratios will be compared with its past ratios. When financial ratios over a period of time are compared, it is called time series or trend analysis. It gives an indication of changes and reflects whether the firm‘s financial performance has improved or deteriorated or remained the same over that period of time. It is not the simply changes that has to be determined, but more importantly it must be recognized that why those International Journal of Accounting and Financial Management Research (IJAFMR) ISSN 2249-6882 Vol. 3, Issue 4, Oct 2013, 89-96 © TJPRC Pvt. Ltd.