Synopsis:
ICICI Bank posted stronger profit growth and loan expansion, while HDFC Bank led in deposit growth and announced a bonus issue. Both banks showed mixed Q1 FY26 results amid rising NPAs.
India’s banking sector plays a crucial role in powering the country’s economic growth by channelling capital, widening access to credit, and promoting financial inclusion across regions. The Indian Fintech industry is currently valued at $111 billion, and is expected to grow more than threefold to $421 billion by 2029, making India home to the world’s third-largest fintech ecosystem.
In this dynamic financial landscape, ICICI Bank and HDFC Bank, two of India’s largest private lenders, have both released their Q1 results, offering fresh insights into their financial health and market positioning. With notable differences in profit growth, loan book expansion, net interest income, etc, the key question for investors is clear: which bank holds stronger potential after Q1? Let’s compare the numbers and market trends to help you decide:
Company Info & Price Movement
With a market cap of Rs. 10.46 lakh crores, shares of ICICI Bank Limited surged nearly 3 percent on BSE to close in the green at Rs. 1,465.85 on Monday. The stock has delivered positive returns of around 18 percent in one year, and gained by over 3 percent in one month.
ICICI Bank Limited is engaged in providing a wide range of banking and financial services, including commercial banking and treasury operations. The bank has overseas branches in Bahrain, China, Dubai, Hong Kong, Singapore, USA and Offshore Banking units.
Meanwhile, shares of HDFC Bank Limited surged nearly 2.2 percent to closed in the green at Rs. 2,000.2 on BSE, with a market cap of Rs. 15.33 lakh crores. The stock has delivered positive returns of around 22 percent in one year, and gained by over 2 percent in one month.
HDFC BANK Limited is engaged in the business of providing a range of banking and financial services, including retail banking, wholesale banking and treasury operations. The bank has overseas branch operations in Bahrain, Hong Kong, Dubai, Singapore and an Offshore Banking Unit at the International Financial Service Centre (IFSC) in GIFT City, India.
Financials and More
ICICI Bank experienced a marginal decline in its net interest income (NII) by around 10 percent YoY from Rs. 23,460 crores in Q1 FY25 to Rs. 25,990 crores in Q1 FY26, while the net profit increased by about 16 percent YoY from Rs. 11,696 crores to Rs. 13,558 crores over the same period.
In Q1 FY26, the bank’s Gross NPA stood at Rs. 24,733 crores, growing by around 2.3 percent QoQ from Rs. 24,166 crores in Q4 FY25 but declining by about 14 percent YoY from Rs. 28,719 crores in Q1 FY25. Meanwhile, the Gross NPA ratio decreased to 1.67 percent in Q1 FY26, as compared to 2.15 percent in Q1 FY25.
The bank’s total deposits increased by nearly 13 percent YoY to Rs. 16,08,517 crores in June 2025, as against Rs. 14,26,150 crores in June 2024. Meanwhile, the ICICI Bank’s total advances stood at Rs. 13,64,157 crores, a growth of 11.5 percent YoY from Rs. 12,23,154 crores over the same period.
In June 2025, the CASA ratio of ICICI Bank stood at 38.7 percent, up from 38.4 percent in March 2025 but down from 39.6 percent recorded in June 2024. Between FY22 and FY25, ICICI Bank’s revenue grew at a 3-year CAGR of 25 percent, while net profit surged at a CAGR of over 27 percent.
On the other hand, HDFC Bank also reported a marginal decline in NII by around 7 percent YoY from Rs. 36,966 crores in Q1 FY25 to Rs. 39,663 crores in Q1 FY26, while the net profit decreased by about 0.6 percent YoY from Rs. 17,188 crores to Rs. 17,090 crores over the same period.
In Q1 FY26, the bank’s Gross NPA stood at Rs. 37,040.8 crores, increasing by around 5 percent QoQ from Rs. 35,222.64 crores in Q4 FY25 as well as by about 12 percent YoY from Rs. 33,025.7 crores in Q1 FY25. Meanwhile, the Gross NPA ratio slightly increased to 1.4 percent in Q1 FY26, as compared to 1.33 percent in Q1 FY25.
The bank’s total deposits increased by nearly 16 percent YoY to Rs. 27,64,089 crores in June 2025, as against Rs. 23,79,084.5 crores in June 2024. Meanwhile, the HDFC’s total advances stood at Rs. 26,28,434 crores, a growth of 7 percent YoY from Rs. 24,63,520.8 crores over the same period. As of June 2025, the CASA ratio of HDFC Bank stood at 34 percent, down from 35 percent in March 2025 and 36 percent recorded in June 2024.
HDFC Bank’s revenue grew at a 3-year CAGR of more than 35 percent between FY22 and FY25, with net profit increasing at a CAGR of over 24 percent during the same period. Additionally, the bank’s Board has approved the issuance of bonus shares in a 1:1 ratio, with a record date fixed on 27th August 2025.
Written by Shivani Singh
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