HDFC Bank vs ICICI Bank: HDFC Bank and ICICI Bank, India’s biggest and second-biggest private sector banks, remained in focus after reporting their September quarter (Q2) results. The two lenders are widely tracked as key constituents of India’s private banking space and are often seen as setting the tone for the sector.
The comparison comes at a time when the Nifty Private Bank Index, which tracks the performance of the top 10 private banks listed on the NSE, has delivered mixed returns across timeframes.
Nifty Private Bank Index Performance
| Period | Return |
| 1 Week | 0.20% |
| 1 Month | 1.81% |
| 3 Months | -2.33% |
| 6 Months | 1.53% |
| YTD | -6.49% |
| 1 Year | -5.45% |
| 3 Years | 21.16% |
| 5 Years | 33.32% |
| Metric | HDFC Bank | ICICI Bank |
| Consolidated Net Profit | Rs 20,700 crore (+5.55%) | Rs 16,333.18 crore (+22.28%) |
| Standalone Net Profit | Rs 19,510 crore (+4.7%) | Rs 14,843 crore (+20.1%) |
| Income Metric | Total income at Rs 97,258 crore | Net interest income at Rs 25,339 crore (+17.7%) |
| Key Growth Driver | — | Loan portfolio up 30% |
| Gross NPA Ratio | 1.11% | 1.20% |
| Previous Quarter Gross NPA | 1.17% | 1.38% |
HDFC Bank reported a consolidated net profit of Rs 20,700 crore for Q2, up 5.55 per cent year-on-year. The lender’s standalone net profit rose 4.7 per cent to Rs 19,510 crore during the July-September quarter. Total income increased to Rs 97,258 crore, while total expenditure climbed to Rs 67,774 crore. The gross non-performing asset (NPA) ratio improved to 1.11 per cent from 1.17 per cent in the previous quarter.
ICICI Bank posted a consolidated net profit of Rs 16,333.18 crore, marking a 22.28 per cent increase. Standalone net profit increased 20.1 per cent to Rs 14,843 crore. Core net interest income rose 17.7 per cent to Rs 25,339 crore, supported by a 30 per cent rise in the loan portfolio. Gross NPA improved to 1.20 per cent from 1.38 per cent in the preceding quarter.
HDFC Bank vs ICICI Bank: Share Price Target
| Brokerage | Stance | HDFC Bank Target Price (Rs) | Upside (%) (From CMP of Rs 685.30) |
| UBS | Buy | 1,130 | 64.89% |
| Bernstein | Outperform | 1,150 | 67.81% |
| MOFSL | Buy | 1,050 | 53.22% |
| Nomura | Buy | 950 | 38.62% |
| Morgan Stanley | Overweight (Attractive) | 1,025 | 49.56% |
| Citi | Buy | 970 | 41.54% |
| Brokerage | Stance | ICICI Bank Target Price (Rs) | Upside (%) (From CMP of Rs 1,377.60) |
| UBS | Buy | 1,720 | 24.86% |
| MOFSL | Buy | 1,750 | 27.03% |
| Bernstein | Outperform | 1,800 | 30.66% |
| Nomura | Buy | 1,620 | 17.60% |
| Citi | Buy | 1,770 | 28.48% |
Brokerages remain positive on both private banking majors, with target prices implying meaningful upside from current market levels. While HDFC Bank’s targets suggest upside potential of up to nearly 68 per cent, ICICI Bank’s projected gains range up to around 31 per cent.
HDFC Bank vs ICICI Bank: Outlook
According to Nuvama, HDFC Bank’s credit growth stood at 16.4 per cent YoY, supported by corporate and SME lending. The brokerage said margin declined 8 basis points QoQ, with recovery expected from Q3 FY27 due to loan repricing.
The brokerage added that Anup Bagchi’s appointment as MD & CEO is expected to support leadership stability and business recalibration.
According to Nuvama, ICICI Bank’s credit growth led peers at 30 per cent YoY, supported by corporate and business banking. Deposit growth reached 27.1 per cent YoY, while core deposits grew 17 per cent YoY.
Nuvama said gross NPA declined to 1.2 per cent, supported by lower slippages and healthy write-offs. Lower operating expenses and provisions resulted in a 7 per cent PAT beat at Rs 148 billion. The brokerage expects RoA of 2.2-2.3 per cent and RoE of around 17 per cent during FY27-FY29.
Conclusion
HDFC Bank and ICICI Bank both reported improvement in asset quality during the September quarter, while brokerages maintained positive stances on both lenders. According to Nuvama, credit growth, deposit mobilisation, margin trajectory and asset quality trends remain key factors to watch for both banks in the coming quarters.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)