HDFC Bank Vs ICICI Bank: The race to the top is on!

Created on 22 Apr 2022

Wraps up in 5 Min

Read by 30.3k people

Updated on 07 Sep 2022

There were days when people used to stand in enormous queues in front of banks to deposit money into their bank accounts. Those were the times when ATM or net banking was not a thing. The Indian banking system has come a long way. Neo banks and UPI payments have taken the place of those long queues. That’s how the Indian banking space has evolved. 

Today, we will discuss the Indian banking system and the two most prominent banks in the industry: ICICI and HDFC. So, let’s dive in. 

Banking industry overview

“The Indian banking industry is sufficiently capitalised and well-regulated,'' says RBI. The sector has witnessed innovation and growth in the past couple of years. The banking system in India comprises 12 PSU, 22 Private banks, 46 foreign banks, 56 regional rural banks,1485 urban cooperative banks, and 96,000 rural cooperative banks. An increase in the working population and the government’s schemes for financial inclusion is expected to give a good boost to the Indian banking sector. Also, the fintech market is in full swing with the growth in digital transactions and growing awareness about internet banking. By 2025, India’s fintech market will reach ₹6.2 trillion.

The government is keen to improve the banking system more and more with the flagship financial inclusion drive Pradhan Mantri Jan Dhan Yojna. The number of bank accounts opened under this campaign as of Feb 2022 reached ₹44.63 crores. 

Speedy implementation of projects like these and continuous growth in the banking sector is expected to strengthen the Indian banking system. 

That was all about the banking system. Today, we will be discussing the two most important private banks in India, ICICI & HDFC. Let’s take a look at their operational as well as stock performance.

Company overview of ICICI Bank

One of the leading private banks in India, ICICI bank has a network of 5,418 branches and 13,626 ATMs across India. The bank was promoted in 1994 by ICICI ltd. But was formed in the year 1955 at the initiative of the world bank. The primary group companies under the bank are ICICI Prudential Life Insurance Company, ICICI Securities, ICICI Lombard General Insurance Company, ICICI Prudential AMC & Trust, ICICI Venture, ICICI Direct, ICICI Foundation, ICICI Home Finance Company Limited. 

The services offered by the bank are related to banking, financial services, corporate finance, insurance, VC & PE, investment banking, broking and treasury products and more. 

As far as the ICICI Bank Ltd. stock is concerned (NSE: ICICIBANK, BSE: 532174) take a look at some of its company essentials. 

Company Overview of HDFC Bank

Another leading private sector bank in India, HDFC bank, was among the first banks in India to receive approval from RBI to set up a private sector bank. The bank has a network of 5,779 branches and 17,238 ATMs across the country. 

The bank caters to its customers in a wide range of services in wholesale banking, Treasury, Retail Banking and more. The group companies under the bank are HDFC Life, HDFC Pension, HDFC Mutual funds, HDFC Ergo, HDFC sales and more. 

Below are the company essentials of HDFC bank ltd. (NSE: HDFCBANK, BSE: 500180). 

Moving forward, let’s take a look at the key ratios and compare both the stocks.

ICICI vs HDFC: Stock Comparison

There are various ratios and parameters that an investor can look at and compare in order to make the best investing decisions. Some of those parameters and ratios are as follows. 


Return on equity is a measure of the financial performance of the company. It depicts the return generated on shareholders' equity (shareholders' investments). The more the ROE, the better it is. The ROE for HDFC Bank as of April 2022 is 16.61%, whereas the ROE for ICICI bank is 12.56%. 

Take a look at the five years ROE data for ICICI and HDFC:


HDFC Bank 


It is a financial ratio that depicts how profitable a company is with its total assets. The ratio depicts how efficiently a company uses its assets to generate revenue. The ROA for ICICI Bank as of April 2022 is 1.39%, whereas for HDFC bank, it is 1.90%. 

Take a look at the 5-year data. 




The price to earnings ratio depicts the company's share price to its earnings per share. This ratio is used to determine if the company is overvalued or undervalued. The P/E ratio for ICICI bank as of April 2022 is 25.25, whereas for HDFC Bank, it is 20.55. 


The P/B ratio measures the market value of the company relative to its book value. The P/B ratio is used by value investors to identify the best investment opportunities. A ratio under 1 is considered ideal. 

The P/B ratio of HDFC bank as of April 2022 is 3.16, whereas for ICICI bank, it is 3.28.


EPS or earning per share is a value depicting the earnings in one share out of all the outstanding shares based on the net income. The EPS for ICICI bank is 66.64, and for HDFC Bank it is 29.82. 

5 Year CAGR return

CAGR or compounded annual growth rate is a measure of an investment's annual growth rate over time. It is used to measure and compare the past performance of investments. The 5-year CAGR return of HDFC bank is 12.4% whereas for ICICI bank it is 25.6%


NIM or net interest margin is the difference between the amount of money that a bank is earning in interests and loans and the amount of money it is paying in interest on deposits. It is one of the prime indicators of a bank's profitability and growth. 

The graph below shows the NIM data for both the banks in the last 5 years. 




One of the major ratio to look at while analysing banking stocks is the CASA ratio. So, as far as it is concerned HDFC bank has a CASA ratio of 46.12% while ICICI bank has a CASA ratio of 46.29.


That was all about ICICI and HDFC Bank. The Indian banking industry is huge and has a lot of stocks in it for you to analyse. To make your analysis process easier we bring to you Ticker by Finology the best screening, equity research, and company analysis tool built by finology. 

Also, Is there any topic you want a blog on or do you have any queries related to this blog? 

Then write us at 

We love it when you communicate with us. Do write in the comment section if you liked the blog.. :) Until then, Happy Investing.

*Disclaimer the stocks discussed above are here to make you understand the concept and are not the recommendations of Finology.  

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Ayushi Upadhyay

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A Keen Learner. Tiny, brainy, and studious, this quiet one stays in her zone until she pops. And once she does, boy, are her comebacks snappy! There is no financial question that she can't answer through her magical blog-writing. 

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