HDFC Bank vs ICICI Bank (2026): Deposits, NIM, NPAs, Growth & Which Bank Is Stronger?
Private-bank comparison · Q1 FY2027 results · Market snapshot 25 August 2026
HDFC Bank is still the bigger banking franchise. ICICI Bank is currently the faster one. HDFC leads on deposits, advances, branch network, market capitalisation and capital adequacy. ICICI leads on net interest margin, recent loan growth, profit growth and net NPA ratio. That makes HDFC Bank vs ICICI Bank less about finding a universally "better bank" and more about deciding whether scale or present operating momentum deserves the higher weight.
Do not compare banks using the same ratios used for cement, IT or FMCG companies
For banks, debt-to-equity, current ratio and conventional ROCE are not the right starting points because deposits are part of the operating model rather than simply corporate debt.
The important comparison is built around net interest margin, deposit franchise, CASA, loan growth, asset quality, credit costs, capital adequacy, profitability and the quality of the loan book.
This is why this HDFC Bank vs ICICI Bank page deliberately does not force generic industrial-company ratios into the analysis.
The short version: HDFC wins scale, ICICI wins current operating momentum
HDFC Bank has the bigger balance sheet and distribution machine, but ICICI Bank currently earns a substantially wider net interest margin and is growing loans and profit faster.
HDFC Bank ended June 2026 with gross advances of approximately ₹30.61 lakh crore and period-end deposits of about ₹31.71 lakh crore.
ICICI Bank ended the same quarter with total loans of approximately ₹16.31 lakh crore and deposits of around ₹18.34 lakh crore.
HDFC is therefore much larger.
Yet ICICI Bank's Q1 FY2027 net interest margin was 4.36%. HDFC Bank's reported NIM was 3.26% on total assets and 3.40% based on interest-earning assets.
ICICI also delivered 19.6% year-on-year loan growth and 15.9% PAT growth. HDFC's gross advances grew 15.4%, while reported PAT grew 5%, or about 9.8% after adjusting for the prior-year HDB Financial Services transaction gain and other one-offs.
HDFC Bank vs ICICI Bank: Q1 FY2027 comparison
| Metric | HDFC Bank | ICICI Bank | Current Edge |
|---|---|---|---|
| Market capitalisation | ₹12.56 lakh Cr | ₹10.16 lakh Cr | HDFC Bank |
| Q1 FY27 PAT | ₹19,060 Cr | ₹14,805 Cr | HDFC on absolute profit |
| Reported PAT growth YoY | 5.0% | 15.9% | ICICI Bank |
| Adjusted HDFC PAT growth | ~9.8% | 15.9% reported | ICICI Bank |
| Net interest income | ₹33,535 Cr | ₹24,384 Cr | HDFC on scale |
| NII growth YoY | 6.7% | 12.7% | ICICI Bank |
| Net interest margin | 3.26% total assets; 3.40% interest-earning assets | 4.36% | ICICI Bank |
| Gross advances / loan portfolio | ₹30.61 lakh Cr | ₹16.31 lakh Cr | HDFC Bank on scale |
| Loan growth YoY | 15.4% gross advances | 19.6% | ICICI Bank |
| Period-end deposits | ₹31.71 lakh Cr | ₹18.34 lakh Cr | HDFC Bank on scale |
| Deposit growth YoY | 14.7% | 14.0% | HDFC Bank slightly |
| CASA ratio | 32.3% period-end | 38.1% average | Not perfectly like-for-like |
| Gross NPA ratio | 1.17% | 1.38% | HDFC Bank |
| Net NPA ratio | 0.41% | 0.35% | ICICI Bank |
| Capital adequacy | 19.6% | 16.84% | HDFC Bank |
| CET-1 | 17.4% | 16.19% | HDFC Bank |
| Branches | 9,694 | 7,608 | HDFC Bank |
| ATMs / cash recyclers | 20,958 ATMs | 12,190 ATMs & cash recyclers | HDFC Bank on physical reach |
Why HDFC Bank is still India's bigger private-bank franchise
HDFC Bank's biggest advantage is not one quarterly ratio. It is the sheer depth of its deposit, lending and distribution network.
At 30 June 2026, HDFC Bank reported period-end deposits of roughly ₹31.71 lakh crore. ICICI Bank reported approximately ₹18.34 lakh crore.
HDFC Bank's gross advances stood at approximately ₹30.61 lakh crore, compared with ICICI's ₹16.31 lakh crore loan portfolio.
HDFC also operated 9,694 branches and 20,958 ATMs across 4,175 cities and towns. Half of its branches were in semi-urban and rural locations.
ICICI Bank had 7,608 branches and 12,190 ATMs and cash recycling machines.
This difference matters because a broad deposit franchise can become a funding advantage when loan demand strengthens and deposit competition becomes intense.
ICICI Bank's biggest advantage today is margin
ICICI Bank's 4.36% Q1 FY2027 NIM is materially above HDFC Bank's current margin.
ICICI's margin was also slightly higher than its 4.32% Q4 FY2026 reading and close to its 4.34% margin in Q1 FY2026.
HDFC Bank's NIM was 3.26% on total assets and 3.40% based on interest-earning assets.
That difference is not cosmetic. For banks, NIM is one of the clearest measures of the spread earned between interest-bearing assets and funding costs.
HDFC Bank's post-merger balance sheet remains unusually large and its funding mix continues to normalise. ICICI's cleaner margin profile is one reason its recent earnings growth looks stronger.
Which bank is growing loans faster?
ICICI Bank currently has the faster loan-growth rate.
ICICI's total advances grew 19.6% year on year to ₹16.31 lakh crore at 30 June 2026.
Its business banking portfolio grew 28.2%, rural loans grew 35.4%, domestic corporate loans grew 18.5% and retail loans grew 12%.
HDFC Bank's gross advances grew 15.4% year on year to approximately ₹30.61 lakh crore.
Within HDFC's book, retail loans grew 7.2%, small and mid-market enterprise loans grew 18.7%, and corporate and other wholesale loans grew 18.6%.
HDFC is adding a much larger absolute amount of lending because its base is larger. ICICI is growing faster in percentage terms.
Which has the stronger deposit franchise?
HDFC Bank has the larger deposit franchise; ICICI currently has the higher reported CASA ratio, although the disclosed ratios use different averaging conventions.
HDFC's period-end deposits grew 14.7% year on year to ₹31.71 lakh crore.
ICICI's period-end deposits grew 14% to ₹18.34 lakh crore.
HDFC's period-end CASA ratio was 32.3%.
ICICI reported an average CASA ratio of 38.1% for Q1 FY2027.
Because one is a period-end figure and the other an average figure, they should not be treated as a perfectly like-for-like comparison. The direction is still useful: ICICI currently has a richer low-cost deposit mix, while HDFC has the much larger absolute deposit pool.
Which bank has better asset quality?
Neither wins every asset-quality measure.
HDFC Bank's gross NPA ratio was 1.17% at 30 June 2026. ICICI Bank's was 1.38%.
On gross NPAs, HDFC is better.
HDFC's net NPA ratio was 0.41%. ICICI's was 0.35%.
On net NPAs, ICICI is better.
The distinction matters because gross NPAs show the overall stock of problem loans, while net NPAs reflect the residual after provisions.
ICICI also reported a 74.7% provisioning coverage ratio on non-performing loans.
Both private banks are operating with asset-quality ratios that are dramatically cleaner than the stressed-bank conditions Indian investors saw in earlier credit cycles.
Profit growth currently favours ICICI Bank
ICICI Bank delivered the stronger headline earnings growth in Q1 FY2027.
ICICI's standalone PAT increased 15.9% year on year to ₹14,805 crore.
Its core operating profit rose 15.6% to ₹20,235 crore. Excluding dividends from subsidiaries, core operating profit grew 18.3%.
HDFC Bank reported PAT of ₹19,060 crore, up 5% year on year.
That headline comparison is distorted by the prior-year period, when HDFC Bank booked a large transaction gain from the partial divestment of HDB Financial Services through its IPO.
HDFC stated that PAT growth was approximately 9.8% after adjusting for prior-year transaction gains, one-off provisions and tax credits.
Even after that adjustment, ICICI's reported 15.9% growth remains stronger.
HDFC Bank still produces much more absolute profit
ICICI is growing faster, but HDFC remains the larger earnings machine.
Q1 FY2027 standalone PAT was ₹19,060 crore for HDFC Bank compared with ₹14,805 crore for ICICI Bank.
HDFC's net interest income was ₹33,535 crore. ICICI's was ₹24,384 crore.
For investors, this is the classic scale versus growth-rate distinction.
A smaller bank can grow faster for longer. A larger bank can create more absolute profit while growing at a lower percentage rate.
Which bank has the stronger capital buffer?
HDFC Bank currently has the stronger capital ratios.
HDFC's total capital adequacy ratio stood at 19.6% at 30 June 2026, with Tier 1 at 17.8% and CET-1 at 17.4%.
ICICI Bank reported total capital adequacy of 16.84% and CET-1 of 16.19%.
Both are comfortably above minimum regulatory requirements.
HDFC's larger buffer provides more room to absorb credit losses or support balance-sheet growth without immediate capital raising.
What does Bull Run's market data say?
ICICI Bank has been far stronger in market performance over the latest year.
| Market Metric | HDFC Bank | ICICI Bank |
|---|---|---|
| Current price | ₹727.50 | ₹1,422.70 |
| Market capitalisation | ₹12.56 lakh Cr | ₹10.16 lakh Cr |
| 1-month return | -2.06% | -0.71% |
| 3-month return | -4.11% | +11.79% |
| 6-month return | -19.04% | +1.27% |
| 1-year return | -25.92% | -0.73% |
| Distance from 52-week high | -28.71% | -3.87% |
| Dividend yield | 1.59% | 0.78% |
| FII holding | 41.82% | 34.48% |
| DII holding | 41.75% | 39.94% |
| Bull Run Score | 38.4/100 | 42.3/100 |
HDFC's current price is close to its 52-week low in Bull Run's snapshot, while ICICI is trading within roughly 4% of its 52-week high.
This does not mean ICICI must continue outperforming. It shows where market expectations currently sit.
Why HDFC Bank's current share-price weakness cannot be interpreted like a normal "cheap stock" signal
A large drawdown is not enough to establish bank valuation.
HDFC Bank's price is approximately 28.7% below its 52-week high in the current Bull Run data, while ICICI Bank is only around 3.9% below its high.
The market is clearly assigning more confidence to ICICI's current earnings trajectory.
For HDFC, investors need to ask whether post-merger deposit growth, loan growth and margins are normalising quickly enough to restore the bank's historical earnings profile.
Simply arguing that HDFC is "down more" is not a banking thesis.
The HDFC Bank case in one sentence
HDFC Bank offers extraordinary scale, a huge distribution franchise, strong capitalisation and the larger absolute profit pool, but current margins and earnings growth are less impressive than ICICI Bank's.
What works
- ₹31.71 lakh crore deposit base.
- ₹30.61 lakh crore gross advances.
- 19.6% capital adequacy.
- 17.4% CET-1.
- Lower gross NPA ratio than ICICI.
- 9,694-branch distribution network.
- Higher absolute PAT and NII.
What needs improvement
- NIM at 3.26% on total assets.
- Reported PAT growth only 5%.
- Retail loan growth only 7.2%.
- Net NPA ratio rose sequentially to 0.41%.
- Share-price performance remains weak.
What to monitor
- Deposit growth versus loan growth.
- CASA mix.
- Post-merger NIM normalisation.
- Retail credit acceleration.
- Asset-quality stability.
The ICICI Bank case in one sentence
ICICI Bank currently combines faster loan growth, stronger PAT growth, a 4.36% NIM and low net NPAs, but operates from a smaller balance sheet and has a lower capital buffer than HDFC Bank.
What works
- 19.6% loan growth.
- 15.9% PAT growth.
- 12.7% NII growth.
- 4.36% NIM.
- 0.35% net NPA ratio.
- Strong growth in business banking and rural loans.
- Recent share-price resilience.
What deserves attention
- Gross NPA ratio of 1.38% is above HDFC's.
- Capital adequacy below HDFC's, though still strong.
- Deposit base is significantly smaller.
- Strong valuation expectations can reduce room for disappointment.
What to monitor
- Whether NIM stays above 4%.
- Credit costs as loan growth stays high.
- Rural and business banking asset quality.
- Deposit growth relative to advances.
- Provisioning coverage and NPA additions.
HDFC Bank vs ICICI Bank: which wins each banking metric?
Absolute scale: HDFC Bank.
Deposit franchise size: HDFC Bank.
Loan-book size: HDFC Bank.
Branch network: HDFC Bank.
Capital adequacy: HDFC Bank.
Gross NPA ratio: HDFC Bank.
Net NPA ratio: ICICI Bank.
Net interest margin: ICICI Bank.
Current loan-growth rate: ICICI Bank.
Current PAT-growth rate: ICICI Bank.
Current NII-growth rate: ICICI Bank.
Recent share-price momentum: ICICI Bank.
Dividend yield in Bull Run's current snapshot: HDFC Bank.
Which bank looks stronger for growth?
ICICI Bank currently has the stronger growth profile.
Loan growth is 19.6% versus HDFC's 15.4% gross-advance growth.
NII growth is 12.7% versus HDFC's 6.7%.
PAT growth is 15.9% versus HDFC's reported 5%, or approximately 9.8% on HDFC's adjusted comparison.
ICICI therefore wins the current growth comparison.
The caveat is that HDFC is growing from a much larger base, so even a lower growth rate can add enormous absolute assets and earnings.
Which bank looks safer?
Both are strongly capitalised and have low bad-loan ratios, so "safer" depends on which measure receives more weight.
HDFC Bank has the higher total capital adequacy and CET-1 ratios.
HDFC also has the lower gross NPA ratio.
ICICI has the lower net NPA ratio and a strong provisioning coverage ratio.
Neither current dataset suggests the kind of balance-sheet distress associated with weaker banking cycles.
Why the next few quarters matter more for HDFC Bank
HDFC Bank's investment debate remains centred on post-merger balance-sheet normalisation.
The bank already has scale. It does not need to prove that it can build a national franchise.
It needs to prove that the enlarged franchise can restore stronger margins, improve deposit composition and accelerate profitable credit growth without weakening asset quality.
That is a different problem from ICICI's. ICICI's challenge is sustaining an already strong operating trajectory without letting rapid credit growth create future stress.
Why ICICI Bank's current momentum is not just a stock-price story
ICICI's relative market performance is supported by operating numbers rather than technical momentum alone.
Its NIM is stronger. Loan growth is faster. PAT growth is faster. NII growth is faster. Net NPAs are lower.
That does not guarantee future outperformance, but it explains why the stock is much closer to its 52-week high than HDFC Bank.
The market is currently rewarding operating momentum.
Final verdict: HDFC Bank or ICICI Bank?
HDFC Bank is the stronger scale franchise. ICICI Bank is the stronger current operating story.
If the comparison is based on deposits, advances, physical distribution, total capital and absolute profit, HDFC wins.
If the comparison is based on NIM, loan growth, NII growth, PAT growth and net NPAs, ICICI wins.
The important question for an investor is not which bank has the more famous brand. It is which set of economics is more likely to improve from today's level.
HDFC's upside case depends on normalisation. ICICI's depends on durability.
That distinction is more useful than calling one bank permanently superior to the other.
HDFC Bank vs ICICI Bank FAQs
Which bank is bigger?
HDFC Bank. It has the larger market capitalisation, deposit base, loan book and branch network.
Which bank has better NIM?
ICICI Bank. Q1 FY2027 NIM was 4.36%, while HDFC reported 3.26% on total assets and 3.40% based on interest-earning assets.
Which bank has lower gross NPAs?
HDFC Bank. Gross NPAs were 1.17% versus 1.38% for ICICI Bank.
Which bank has lower net NPAs?
ICICI Bank. Net NPAs were 0.35% versus 0.41% for HDFC Bank.
Which bank is growing loans faster?
ICICI Bank. Its total loan portfolio grew 19.6% year on year, versus 15.4% growth in HDFC Bank's gross advances.
Which bank has better capital adequacy?
HDFC Bank. Its total CAR was 19.6% compared with ICICI Bank at 16.84%.
Which bank has performed better in the stock market over the last year?
ICICI Bank. Bull Run's 25 August 2026 snapshot shows ICICI down only about 0.7% over one year, while HDFC Bank is down about 25.9%.
Does HDFC Bank have promoter holding?
No identified promoter is reported following the HDFC Limited merger. HDFC Bank describes itself as a professionally managed organisation without an identified promoter.
Primary research sources
Disclaimer
This comparison is educational and informational only. Banking metrics are based primarily on HDFC Bank and ICICI Bank disclosures for the quarter ended 30 June 2026, with market and ownership data from Bull Run's available 25 August 2026 snapshot. Bank ratios require different interpretation from industrial-company ratios. Financial performance, margins, NPAs, capital ratios and market prices change over time. Nothing in this article recommends buying, selling or holding HDFC Bank, ICICI Bank or any other security. Bull Run is not a SEBI-registered Research Analyst or Investment Adviser.