Digital Banking Transformation and Profitability: A Trend Analysis of ROA and ROE of HDFC Bank (2014–2025)
DOI:
https://doi.org/10.69533/z7p5vg30Keywords:
Digital Banking, Profitability, ROA, ROE, Fintech, Financial PerformanceAbstract
This study examines the profitability of HDFC Bank within the context of digital banking transformation by analyzing trends in Return on Assets (ROA) and Return on Equity (ROE) over the period 2014–2025. Unlike conventional financial studies, this research integrates a digital business perspective by linking financial performance with technological advancement in banking services. The study adopts a quantitative approach using secondary data collected from annual reports, Reserve Bank of India publications, and financial databases. Analytical tools include ratio analysis and trend analysis to evaluate Net Profit, Total Assets, Shareholders’ Equity, ROA, and ROE. The findings indicate consistent growth in profitability and asset expansion, supported by stable ROA, which reflects efficient asset utilization driven by digital banking systems. However, a gradual decline in ROE suggests increased capital expansion due to long-term investment in digital infrastructure. The study concludes that digital transformation plays a significant role in enhancing operational efficiency and sustaining profitability in the banking sector.
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Copyright (c) 2026 Dipangshu Dev Chowdhury, Nabaraj Bhowmik (Author)
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