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

Created on 22 Apr 2022

Wraps up in 5 Min

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Updated on 10 Apr 2024

HDFC Bank Vs ICICI Bank: A Detailed Analysis

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 public sector banks, 22 private counterparts, 46 foreign players, 56 regional rural banks, 1,485 urban cooperative banks, and 96,000 rural cooperative banks. 

An increase in the working population and the government’s schemes for financial inclusion are expected to give the Indian banking sector a good boost. 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 further with the flagship financial inclusion drive Pradhan Mantri Jan Dhan Yojna. That's 50.18 crore beneficiaries banked by August 2023

The speedy implementation of projects like these and continuous growth in the banking sector are expected to strengthen the Indian banking system. 

That was all about the banking system. Today, we will discuss the two most important private banks in India: ICICI and HDFC. Let’s examine their operational and stock performance.

Company Overview of ICICI Bank

One of the leading private banks in India, ICICI Bank has a network of 6,074 branches and 16,731 ATMs across India. The bank was promoted in 1994 by ICICI Ltd. but was formed in 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 8,086 branches and 20,688 ATMs across the country. 

The bank caters to its customers through a wide range of services, including 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 stocks.

ICICI vs HDFC: Stock Comparison

Various ratios and parameters can be compared by an investor to make the best investing decisions. Some of those parameters and ratios are as follows. 

Return On Equity

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 January 2024 is 17%, whereas the ROE for ICICI Bank is 17.53%

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



HDFC Bank 


Return On Assets

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 January 2024 is 2.13%, whereas for HDFC Bank, it is 1.95%

Take a look at the 5-year data. 




Price/ Earning Ratio


The price-to-earnings ratio depicts the company's share price relative to its earnings per share. This ratio is used to determine whether the company is overvalued or undervalued. As of January 2024, the P/E ratio for ICICI Bank is 18.37, whereas for HDFC Bank, it is 19.8

Price to Book Value

The P/B ratio measures a company's market value relative to its book value. Value investors use this ratio to identify the best investment opportunities. A ratio under one is considered ideal. 

As of January 2024, HDFC Bank's P/B ratio is 2.64, whereas ICICI Bank's is 3.24.

Earning Per Share

EPS or earnings 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 56.01, and for HDFC Bank, it is 74.20

Net Interest Margin

NIM, or net interest margin, is the difference between a bank's earnings in interest and loans and its payments 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 banks in the last five years. 





One major ratio to consider while analysing banking stocks is the CASA ratio. HDFC Bank has a CASA ratio of 44.39%, while ICICI Bank has a CASA ratio of 45.84%.

The Bottom Line

That was all about ICICI and HDFC Bank. The Indian banking industry is huge and has many stocks for you to analyse. To make your analysis process easier, we bring you Finology Ticker, 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 and companies discussed above aren't a recommendation from Insider by Finology and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.

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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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