Quantitative analysis shows the financial impacts of COVID-19 on HDFC Bank, highlighting resilience and risk management.
Objectives: This study aims to evaluate the financial impact of the COVID-19 pandemic on the Indian banking sector, with a specific focus on HDFC Bank. It compares pre-pandemic and post-pandemic financial performance to assess the bank’s resilience during a major global crisis. Theoretical Framework: The research is grounded in financial performance analysis theory, emphasizing liquidity, solvency, and profitability as key indicators of institutional stability in times of crisis. Method: A quantitative approach is employed using ratio analysis to evaluate financial data from 2017 to 2021. Key financial ratios analysed include current ratio, cash position, fixed asset turnover, debt-equity ratio, and proprietary ratio, providing a comprehensive view of the bank’s financial health. Results and Discussion: Findings reveal that HDFC Bank maintained a stable financial position despite the pandemic-induced disruptions. While the banking sector witnessed a surge in NPAs and weakened loan demand, HDFC Bank demonstrated prudent financial management. Although revenues were affected and expenditures increased, the bank overcame liquidity challenges effectively. Research Implications: The study offers critical insights into how strong financial governance and risk management practices can help banks navigate unprecedented challenges, supporting strategic decision-making for future crises. Originality/Value: This study uniquely contributes to post-pandemic banking literature by bridging a pre- and post-COVID financial performance comparison within the Indian context, offering practical implications for regulators, policymakers, and financial institutions.
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Iqbal et al. (2025) studied this question.
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