ICICI Bank closes in on HDFC Bank, market-cap gap shrinks to ₹49,167 crore

ICICI Bank is closing in on HDFC Bank to become India’s most valued bank, with the market-cap gap between the two lenders shrinking to just ₹49,167 crore on Monday — a dramatic narrowing from ₹4.17 lakh crore before the abrupt exit of HDFC Bank chairman Atanu Chakraborty.

HDFC Bank is currently valued at ₹10,92,648 crore, while ICICI Bank is valued at ₹10,43,481 crore.

In the last six months — since Chakraborty’s exit — the valuation gap between the two banks has come down by ₹3.68 lakh crore. On March 17, 2026 — a day before Chakraborty’s exit — HDFC Bank was valued at ₹14,24,475 crore, while ICICI Bank was valued at ₹10,07,209 crore.

HDFC Bank is now just 4.5% ahead of ICICI Bank in market capitalisation, putting the latter within striking distance of overtaking its larger rival. This is the closest the two have come in more than a decade. It is pertinent to note that before 2009, ICICI Bank used to lead HDFC Bank in terms of market capitalisation.

The narrowing gap comes amid a sharp divergence in the two stocks. HDFC Bank shares fell 1.57% on Monday after managing director and chief executive Sashidhar Jagdishan decided to opt out of the race for another term at the lender. ICICI Bank, meanwhile, gained 2.19% during the session.

The latest market moves have further compressed the valuation gap between the two private-sector banking giants.

The leadership uncertainty at HDFC Bank had emerged as a key overhang for investors. Jagdishan’s decision not to seek another term comes at a time when the lender is already mired in repeated controversies. Chakraborty’s exit dented the bank’s valuation when he quit abruptly, citing ethical and moral concerns. While an independent law firm exonerated the bank’s management in the matter, the controversies continued to take a toll on the bank’s prospects. The former chairman’s exit was followed by allegations of wrongdoing over excess interest paid to the Maharashtra State Road Development Corporation.ICICI Bank, on the other hand, has continued to command strong investor interest, helping its shares outperform and steadily narrow the gap with HDFC Bank.

With the difference now at ₹49,167 crore, a relatively small move in either stock could determine which lender holds the top spot in India’s banking sector by market capitalisation.