Narsimha Rao and the finance minister Dr. Manmohan Singh in the year 1991. Through this reform foreign direct investment was brought in many sectors. By the 20th century India headed towards a free market economy which reduced the state control of the economy with increased financial liberalization (Datt Sundharam, 2009, p. 976). The Indian economy is the eleventh largest in the world by the nominal GDP and the third largest in terms of the PPP (Purchasing Power Parity). In 2010-2011 India maintained a GDP growth rate of around 8% thus bringing down the fiscal deposit of the country to 4.8% of GDP by maintaining a current account deficit to 2.6%. However, the fiscal year 2001-2012 has been a challenging for the Indian economy. With the progressing year monetary tightening was witnessed in response to the untamed inflationary pressures. The gradual increase in inflation of the Indian economy resulted in slowing down the growth rate of India. In spite of the economic turmoil in the country India still is goring at a rapid pace in comparison to other developing countries. This in turn is enhancing the opportunity of India to push through further reforms, generate economic opportunities and create infrastructure for the country (“Current State of Indian Economy”, 2012, pp.1-7). The Indian financial market has progressed over the years especially in the banking sector with 14 nationalized banks to provide 40% of their net credit to priority sectors so as to fulfill the developmental and social goals of the country. Company’s Business HDFC bank mainly provides service in wholesale banking, retail banking and treasury services undertaken by the company. In the whole sale banking the target customers of the… This paper shows that according to the study of HDFC bank we can conclude that the company is performing very well even ender the turmoil economic situation of the country. The evidence of which is their increased net profit which has amounted to Rs.113, 413, 323, 000. But the cost of revenue of the company has increased over the year which is cause of concern for the bank. The company is listed in National Stock Exchange in India. The bank has made some investment decision which has resulted in negative returns for the company. This has reduced the cash and cash equivalents of the company to Rs. 209, 377, 263, 000. The accounting principles that is adopted in India is a little different from that of IFRS which is usually applied in developed countries like America, Europe, etc. Thus the item under consideration is usually a little different from that of a manufacturing company and so is their process of accounting. Hence, the bank under consideration has been successful in generating an income of Rs. 325,300,466,000. This paper approves that the impairment of the assets is usually assessed in the balance sheet of the company. The occurrence of the impairment loss, if any is forecasted in the profit and loss statement of the company. This generally arises when the carrying cost of the assets exceeds the estimated recoverable amount. The revisions of the accounting estimates are prospectively recognized both in current as well as future periods.