scorecardresearchHDFC Bank Vs. ICICI Bank: How the two banks fare against each other
ICICI Bank announced a dividend of  <span class='webrupee'>₹</span>5 per share, while HDFC Bank announced a dividend of  <span class='webrupee'>₹</span>15.50.
ICICI Bank announced a dividend of  <span class='webrupee'>₹</span>5 per share, while HDFC Bank announced a dividend of  <span class='webrupee'>₹</span>15.50.

HDFC Bank Vs. ICICI Bank: How the two banks fare against each other

Updated: 26 Apr 2022, 07:59 AM IST
TL;DR.

ICICI Bank delivered a robust performance for the fourth quarter ended March 31, 2022, beating Street estimates. while HDFC bank slightly missed analyst estimates.

India's two largest private sector banks have announced their Q4 results. HDFC Bank announced its Q4FY22 results on April 16th, 2022, while ICICI Bank released the results for the same quarter on April 23rd, 2022.

ICICI Bank delivered a robust performance for the fourth quarter ended March 31, 2022, beating Street estimates. while HDFC bank slightly missed analyst estimates.

Business Overview

HDFC Bank

HDFC Bank Ltd is one of India's premier banks. The bank provides a wide range of banking services, covering commercial and investment banking on the wholesale side and transactional and branch banking on the retail side.

The bank has three primary business segments, namely banking, wholesale banking, and treasury. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans, non-fund facilities, and transaction services to corporate, public-sector units, government bodies, financial institutions, and medium-scale enterprises. The treasury segment includes net interest earnings on the investment portfolio of the bank.

ICICI bank

ICICI Bank Ltd. (Industrial Credit and Investment Corporation of India) is an Indian multinational bank and financial services company headquartered in Vadodara.

It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital, and asset management. The bank has a presence in 17 countries. The bank has subsidiaries in the United Kingdom and Canada.

Net Profit

ICICI Bank's net profit jumped 59.4 percent year-on-year (YoY) to 7,018.7 crore. In the corresponding quarter last year, the company posted a net profit of 4,403 crore.

 

Net Profit - HDFC Banks &amp; ICICI Bank
Net Profit - HDFC Banks & ICICI Bank

HDFC Bank reported a net profit of 10,055.18 crore for the March 2022 quarter, a jump of 22.82 percent as compared with 8,186.51 crore a year ago.

Net Interest Income

NII: The difference between the interest income a bank earns from its lending activities and the interest it pays to depositors

HDFC Bank's net interest income increased 10.2 percent to 18,872.7 crore in the March 2022 quarter, up from 17,120.2 crore the previous year.

 

NII - HDFC bank and ICICI Bank
NII - HDFC bank and ICICI Bank

ICICI's net interest income (NII) increased by 21 percent YoY to 12,605 crore in Q4-2022 from 10,431 crore in Q4-2021.

Net Interest Margin

HDFC bank’s core net interest margin stood at four percent on total assets and 4.2 percent based on interest-earning assets.

Other income (non-interest revenue) was at 7,637.1 crore, which was 28.8 percent of the lender’s total net revenues for the quarter, compared with 7,593.9 in the March 2021 quarter.

ICICI Bank's net interest margin stood at 4.00 percent in Q4-2022 compared to 3.84 percent in Q4-2021 and 3.96 percent in the quarter ended December 31, 2021 (Q3-2022).

The non-interest income, excluding treasury income, increased by 11 percent YoY to 4,608 crore in Q4-2022 from 4,137 crore in Q4-2021.

Deposit Growth

Total deposits for ICICI bank increased by 14 percent YoY and 5 percent sequentially to 1,064,572 crore on March 31, 2022. Average current account deposits increased by 24 percent year-on-year in Q4-2022. Average savings account deposits increased by 23 percent YoY in Q4-2022.

Total term deposits increased by 9 percent YoY to 546,135 crore on March 31, 2022. The bank had a network of 5,418 branches and 13,626 ATMs on March 31, 2022.

The bank had a network of 5,418 branches and 13,626 ATMs on March 31, 2022.

 

Bank's Total Deposits&nbsp;
Bank's Total Deposits 

HDFC bank’s total deposits as on March 31, 2022, stood at 15,59,217 crore, a jump of 16.8 percent as compared with the previous year. CASA (current account-saving account) deposits rose 22 percent with savings account deposits at 5,11,739 crore and current account deposits at 2,39,311 crore.

The bank added 563 branches and 7,167 employees during the March 2022 quarter and 734 branches and 21,486 employees during the year 2021-22.

Net NPA

HDFC bank's net NPAs, or bad loans, stood at 0.32 percent of net advances at the end of the March 2022 quarter as compared with 0.40 percent a year ago. In absolute terms, it stood at 4,407.68 crore as against 4,554.82 crore a year ago.

 

Net NPA: HDFC banks Vs. ICICI Bank&nbsp;
Net NPA: HDFC banks Vs. ICICI Bank 

ICICI Bank's net NPA ratio declined to 0.76 percent on March 31, 2022, from 0.85 percent on December 31, 2021, and 1.14 percent on March 31, 2021.

Capital Adequacy Ratio

HDFC bank's total capital adequacy ratio (CAR) as per Basel III stood at 18.9 percent as of March 31, 2022, against the regulatory requirement of 11.7 percent. As of March 31, 2021, it was 18.8 percent. 17.9 percent as of March 31, 2022, compared with 17.6 percent as of March 31, 2021.

ICICI Bank's total capital adequacy on March 31, 2022, was 19.16% and Tier-1 capital adequacy was 18.35% compared to the minimum regulatory requirements of 11.70% and 9.70%, respectively. The board recommended a dividend of 5 per equity share.

Financials

 Key Financials ( Cr) HDFC Bank ICICI Bank
 Mar -22Dec -21Sep -21Jun -21Mar -22Dec -21Sep -21Jun -21
 Total Revenue41,085.840,651.638,754.236,771.5 27,412.327,069.726,030.824,379.3
Operating Expenses10,152.89,851.19,277.98,160.4 7,0497,074.96,572.26,037.2
Operating Profit8,7208,592.48,406.58,848.5 5,555.55,161.25,117.54,898.5
Operating Profit Margin (%) 26.0726.4626.8129.03 24.5023.3724.1024.03
Interest 14,57614,024.613,66910,306.2 10,070.39,846.69,543.99,447.6
Profit Before tax 13,044.713,78211,882.610,306.2 9,2248,140.97,201.26,042.7
Tax 2,989.53,439.83,048.32,576.6 2,205.3 1,947.11,690.31,426.7
Net Profit  10,055.210,342.28,834.37,729.6 7,018.76,193.85,510.94,616
Basic EPS (Rs) 18.118.71614 10.18.986.7

Stock Performance

 Stock Returns (%)HDFC BankICICI Bank
1 Year-3.431.98
3 Years20.5990.24
5 Years77.58203.64

Dividend

ICICI Bank announces a dividend of 5 per share and the record/book closure dates will be announced in due course, according to the exchange filing.

The dividend on equity shares will be paid on or after the same is approved by the shareholders at the ensuing Annual General Meeting (AGM) of the Bank.

HDFC Bank has announced a dividend of 15.50, or 1,550 per cent per equity share with a face value of 1 each for FY22, the highest in rupee terms in the last 11 years. The private sector lender announced a dividend of 16.50 per equity share in June 2011, its second-highest ever dividend announced since April 2001.

Note: This story is for educational purposes only. Please speak to a financial advisor before investing.

Note: This story is for educational purposes only. Please speak to a financial advisor before investing.

Top 10 banks in India
Top 10 banks in India
First Published: 26 Apr 2022, 07:59 AM IST