Abstract

HDFC Bank Limited (HDFC) is a leading private sector bank in India. During the year 2020-21, the bank earned revenue of Rs. 15,58,852.736 million, while its consolidated profit before tax was Rs. 427,725.836 million after adjusting for expenses. The present case study can help in analyzing and understanding the cash flows from the operating, investing, and financing activities of a banking company. The case study can also be used to understand how to determine the amount of total cash and cash equivalents generated during the year.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The concept of cash flows and cash equivalents
• The nature and classification of operating, investing, and financing activities of a banking company
• The process of determining the cash flows of a banking company as per Accounting Standard 3

Keywords

HDFC Bank Limited; Cash flow; Cash equivalents; Operating Cash flows; Investing Cash flows; Financing Cash flows; Indian Accounting Standard 3