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Analysis of financial performance with regard to digital payment: a case of HDFC bank

• ORIGINAL ARTICLE
• Published: 09 February 2024

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• Shilpa Agarwal   ORCID: orcid.org/0000-0001-8300-2965 1 ,
• Priyanka Malik 2 &
• Shalini Gautam 3  

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The present research paper examines digital payment cards, which are regarded as one of the most important instruments for digital payment innovation. The study analyzed the impact of digital payment methods on bank’s performance, particularly EPS including the pandemic which has not been considered in the previous studies. The present study makes use of two independent variables and four dependent variables: debit cards (DC), credit cards (CC), operating profit margin (OP), return on assets (ROA), earnings per share (EPS), and return on equity (ROE). The methodology of the research study examines bank data from 2015 to 2022 (including the period of the pandemic) through regression analysis using the E-view 12 software . The findings demonstrate that the ROA and ROE of banks are significantly impacted by the use of debit cards and credit cards. However, they do not significantly affect the earnings per share. Further, debit cards impact OP margin significantly, and no significant impact of credit cards on operating profit. The study demonstrates that strengthening the use of digital payment tools requires both activating supervisory and regulatory authorities as well as improving the efficacy of data security against risks. The study provides insight into how digital payment cards improve financial performance, especially when analyzing EPS and selecting the beneficial investment strategy.

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Amity College Commerce and Finance, Amity University, Noida, India

Shilpa Agarwal

Amity International Business School, Amity University, Noida, India

Priyanka Malik

Delhi Metropolitan Education, Noida, India

Shalini Gautam

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Agarwal, S., Malik, P. & Gautam, S. Analysis of financial performance with regard to digital payment: a case of HDFC bank. Int J Syst Assur Eng Manag (2024). https://doi.org/10.1007/s13198-023-02201-x

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Received : 23 March 2023

Revised : 04 July 2023

Accepted : 27 October 2023

Published : 09 February 2024

DOI : https://doi.org/10.1007/s13198-023-02201-x

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