What is the Difference Between Indian Banks HDFC and ICICI?

HDFC Bank and ICICI Bank are two of the largest private sector banks in India, with both banks consistently improving their retail presence and offering diversified customized products to cater to individual requirements. Here are some key differences between the two banks:

1. Branch Network and Customer Acquisition: HDFC Bank has a more granular branch expansion and has opened more branches in the past three years compared to ICICI Bank. Additionally, HDFC Bank has managed its market share dominance in credit card issuances and has a higher number of debit card issuances. ICICI Bank, on the other hand, has a more extensive loan growth in recent quarters, outpacing HDFC Bank's loan growth numbers.
2. Net Interest Margin: HDFC Bank's net interest margin has remained consistent between 4% and 4.4%, while ICICI Bank has demonstrated a marked improvement of 163 basis points over the last 24 quarters.
3. Asset Quality: HDFC Bank has maintained a stable asset quality, with its gross non-performing assets (NPA) ratio remaining stable between 1.1% and 1.42% over the last 24 quarters. In contrast, ICICI Bank's gross NPA ratio has shown significant improvement, dropping by 518 basis points over the same period.
4. Return Ratios: ICICI Bank has shown significant improvement in its return ratios, achieving its best-ever return on assets (ROA) of 2.39% in Q4 FY23.
5. Deposit and Loan Growth: ICICI Bank's deposit per branch is similar to HDFC Bank's, 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.

In summary, HDFC Bank has a more extensive branch network and better customer acquisition, while ICICI Bank has shown significant improvement in its financial performance metrics, such as net interest margin, asset quality, and return ratios. Both banks are major players in the Indian banking sector, and their performance is likely to continue to influence the market.

Comparative Table: Indian Banks HDFC vs ICICI

Here is a table comparing the differences between Indian banks HDFC and ICICI:

HDFC Bank targets a niche market and focuses on providing a wide range of products and services to corporate and retail customers, while ICICI Bank markets to all customers. HDFC Bank has a higher deposit base than ICICI Bank and has been growing its deposit base at a faster rate. HDFC Bank also has a higher net interest margin compared to ICICI Bank. However, ICICI Bank has been improving its financial performance since the management overhaul, and its performance is inching closer to HDFC Bank.