ICICI Bank has been performing exceptionally well in recent quarters, showing remarkable progress across several parameters. On the other hand, HDFC Bank has maintained a stable asset quality and net interest margin over an extended period.
However, when comparing the two banks' net interest income growth rate over the past ten quarters and the profit growth on a year-on-year basis, ICICI Bank has outperformed HDFC Bank.
Additionally, ICICI Bank's gross non-performing assets (NPA) ratio has shown significant improvement, dropping by 518 basis points over the last 24 quarters, whereas HDFC Bank's gross NPA ratio has remained stable between 1.1 percent and 1.42 percent during the same period.
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Similarly, while HDFC Bank's net interest margin has remained consistent between 4 percent and 4.4 percent, ICICI Bank has demonstrated a marked improvement of 163 basis points over the last 24 quarters.
HDFC Bank has maintained stable return ratios with its return on asset (ROA) remaining between 1.8 percent and 2.1 percent for the last 14 quarters. In contrast, ICICI Bank has shown significant improvement in its return ratios, achieving its best-ever ROA of 2.39 percent in Q4 FY 23. This improvement can be attributed to ICICI Bank's massive loan growth in recent quarters, which has outpaced HDFC Bank's loan growth numbers.
ICICI Bank's deposit per branch is similar to what HDFC Bank had in Q3 FY20, at around Rs 200 crore per branch. Meanwhile, ICICI Bank's loan per branch is around Rs 173 crore per branch, similar to HDFC Bank's loan per branch in Q3 FY20, which was at Rs 175 crore per branch.
Additionally, ICICI Bank's CASA per branch has grown at a rate of 43.9 percent between Q3 FY 20 and Q4 FY 23, while HDFC Bank's CASA per branch has grown at a rate of 35.4 percent during the same period.
ICICI Bank's quarterly OPEX per branch in Q4 FY 23 was Rs 1.51 crore, slightly higher than HDFC Bank's quarterly OPEX per branch of Rs 1.48 crore in Q3 FY 20.
On a quarterly basis, ICICI Bank currently earns a profit of about Rs 1.55 crore per branch, while HDFC Bank earns Rs 1.54 crore per branch.
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However, it is important to note that ICICI Bank's branch network has only grown by 11.85 percent between Q3 FY 20 and Q4 FY 23, compared to HDFC Bank's growth of over 47 percent during the same period.
Although HDFC Bank has expanded its branch network to reach out to customers of HDFC Limited, it cannot be denied that increased branches can result in good business momentum in the future.
It's important to contextualize the productivity ratios, given that ICICI Bank has had relatively lower branch expansion compared to HDFC Bank. If ICICI Bank decides to expand its branch network for future growth, it will be interesting to see how this impacts its operating metrics.
Currently, ICICI Bank is benefiting from its lower branch expansion in recent quarters, which is reflected in its productivity ratios, compared to HDFC Bank.
FAQs
ICICI Bank's quarterly OPEX per branch in Q4 FY 23 was Rs 1.51 crore, slightly higher than HDFC Bank's quarterly OPEX per branch of Rs 1.48 crore in Q3 FY 20. On a quarterly basis, ICICI Bank currently earns a profit of about Rs 1.55 crore per branch, while HDFC Bank earns Rs 1.54 crore per branch.
What is the performance of ICICI Bank vs HDFC Bank? ›
In case of ICICI Bank, net interest margins (NIMs) fell to 4.4% in the last quarter against 4.65% in the December 2022 quarter. HDFC Bank's yield on assets rose to 8.3% in Q3 against 7.7% in Q3 of the last fiscal. ICICI Bank's yield on assets rose to 8.71% in Q3 against 8.07% in Q3 of the last fiscal.
What is the financial performance of ICICI Bank? ›
The profit after tax of ICICI General grew by 11.0% to ₹ 1,919 crore (US$ 230 million) in FY2024 from ₹ 1,729 crore (US$ 207 million) in FY2023. The profit after tax was ₹ 520 crore (US$ 62 million) in Q4-2024 compared to ₹ 437 crore (US$ 52 million) in Q4-2023.
What is the financial performance of HDFC Bank? ›
The continuous monitoring of costs and building of operational efficiencies has resulted in only a marginal increase of 0.60% in the Cost to Income Ratio to 36.9%. The asset mix of the Bank has shifted to high rated but low yielding segments. Consequently, the Net Interest Margin has reduced marginally to 4.0%.
What makes ICICI different from other banks? ›
In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group, offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
Which bank is better for saving HDFC or Icici? ›
HDFC Bank has maintained stable return ratios with its return on asset (ROA) remaining between 1.8 percent and 2.1 percent for the last 14 quarters. In contrast, ICICI Bank has shown significant improvement in its return ratios, achieving its best-ever ROA of 2.39 percent in Q4 FY 23.
Which is better, HDFC or ICICI for NRI account? ›
ICICI is a highly recommended trading account for NRIs who are looking for investing in the stock market and mutual funds in India. It offers a convenient way to invest with competitive brokerage charges. It offers a range of investment options along with a dedicated RM, NRI support desk, free research, and tips.
Which rank is ICICI Bank in India? ›
Top Indian banks in 2024 based on market cap
| Rank & Bank Name | Type | Market Cap (Rs Lakh Crore) |
|---|
| #1 HDFC Bank | Private | 11.57 |
| #2 ICICI Bank | Private | 7.84 |
| #3 SBI | Public | 7.35 |
| #4 Kotak Mahindra | Private | 3.32 |
6 more rowsApr 1, 2024
Employees of ICICI Bank will increasingly get assessed on overall performance and growth of the bank than individual targets or performance. It means collective performance is more important than individual performance for the bank.
Is ICICI Bank fundamentally strong? ›
ICICIBANK has positive Net Income for the last twelve months. ICICIBANK's ROE (Return on Equity) for the past 12 months is positive and is equal to 19%. ICICIBANK has positive three-year average ROE (Return on Equity): 16%.
Alternatively, a slowdown in lending growth could be observed, or a combination of both scenarios. Such developments might result in a de-rating of the banking sector. To address the elevated LDR, analysts suggest that HDFC Bank needs to grow its deposit growth rate at a rate 3-4% higher than its credit growth.
How is HDFC Bank performing? ›
HDFC Bank has been growing earnings at an average annual rate of 19.6%, while the Banks industry saw earnings growing at 37.2% annually. Revenues have been growing at an average rate of 23.5% per year. HDFC Bank's return on equity is 13.9%, and it has net margins of 28%.
What is the weakness of HDFC Bank? ›
The HDFC SWOT Analysis has the following weaknesses: According to nationalised banks, HDFC has a lower rural penetration rate. Share of the market growth is constrained by competition from banks in both the public and private sectors.
What is the comparative analysis of HDFC Bank and ICICI Bank? ›
The Cost-to-Income Ratio, a key indicator of cost management, showcases HDFC Bank's superiority with an average ratio of 40.222% compared to ICICI Bank's 60.268%. This highlights HDFC Bank's adeptness in controlling operational costs, contributing to its sustained profitability.
What is the advantage of ICICI Bank? ›
Reward Points. Your card entitles you to earn ICICI Bank Reward points on your transactions. You can redeem your ICICI Bank Reward points via many options — from movie and travel vouchers to lifestyle products, mobiles, appliances and more. With your ICICI Bank Credit Card, shopping is truly rewarding!
What makes ICICI unique? ›
Conversion into a bank offered ICICI the ability to accept low-cost demand deposits and offer a wider range of products and services, and greater opportunities for earning non-fund based income in the form of banking fees and commissions.
Who is the biggest competitor of HDFC Bank? ›
- Axis Bank. Provider of a commercial banking services. ...
- IDFC First Bank. Commercial bank. ...
- Bandhan Bank. Commercial bank. ...
- ICICI Bank. Provider of commercial banking services. ...
- Kotak Mahindra Bank. Banking and financial services company. ...
- IndusInd Bank. ...
- RBL Bank. ...
- Bank of America.
List of 10 Best Banks in India 2023
- State Bank of India (SBI)
- HDFC Bank.
- ICICI Bank.
- Punjab National Bank (PNB)
- Bank of Baroda (BoB)
- Axis Bank.
- Canara Bank.
- Union Bank of India.
HDFC Bank is the largest bank in India and the fourth largest bank in the world according to market capitalization. It is a private bank and holds a good position in the financial industry. Recently, in 2023, HDFC Bank merged with HDFC Ltd, for better services.
Which rank is HDFC Bank in India? ›
Following the merger, HDFC Bank now claims the distinction of being the world's 7th largest lender and holds the position of the largest bank in India.
