A Comparison between ICICI Bank and HDFC Bank

ICICI Bank is the Largest Private Sector Bank in India and HDFC Bank is a close second. If you talk to a random stranger on the road, there is a 50-50 chance that he/she has an account with either of these two private sector behemoths. Both ICICI and HDFC Bank are part of the National Stock Indices and are some of the most active stocks in the country. The purpose of this article is to compare these two banks on all possible aspects.

About the Company's:

ICICI Bank is the Second Largest Bank in India and the Largest Private Sector Bank in the country. The bank has a network of 2800+ branches, 10000+ ATMs and has presence in 19 countries. It was founded in the year 1954 and is headed by Ms. Chanda Kochhar (MD & CEO). It offers a variety of financial services like Consumer Banking, Credit Cards, Corporate Banking, Investment Banking, Private Banking, Wealth Management etc. It is one of the members in the 30 stock Sensex and 50 stock Nifty.

HDFC Bank is the Second Largest Private Sector Bank in India and one of the top 5 banks in the country. The bank has a network of 2700+ branches and 10000+ ATMs across India. It also has numerous branches across the globe. It was founded in the year 1994 and is headed by Mr. Aditya Puri (MD). It offers a variety of financial services like Consumer Banking, Credit Cards, Corporate Banking, Investment Banking, Private Banking, Wealth Management etc. It is one of the members in the 30 stock Sensex and 50 stock Nifty.

Shareholding Pattern:

The following table illustrates the % holding of shares of these two companies by the different categories of investors.

Criteria	ICICI Bank	HDFC Bank
Indian Promoters Holding (%)	0	23.2
Indian Institutions/Mutual Funds (%)	26.6	10.5
Foreign Institutional Investors (FIIs) (%)	35.9	30.7
ADR & GDR (%)	26.9	17.3
Free Float (Public Holding) (%)	10.6	18.4
Approx No. of shareholders	7 lakh+	4.5 lakh+

Key Financial Data:

The following table illustrates the key financial data/numbers for both the banks. As you can see below, both these banks are high profitable and have solid assets and customer base.

Criteria	ICICI Bank	HDFC Bank
P/E	16	24.6
P/BV	2.2	5.5
Average Divident Yield (%)	1.9	0.9
Earnings Per Share (EPS)	Rs. 66.3	Rs. 22.4
Income Per Share	Rs. 329.6	Rs. 117.6
Book Value Per Share	Rs. 531.6	Rs. 128.6
Outstanding Shares	1153 million	2347 million
Average Market Capitalization (Approx)	Rs. 1.02 Lakh Crores	Rs. 1.13 Lakh Crores
Number of Employees (Approx)	58000	66000
Profits Before Tax	Rs. 10,866 Crores	Rs. 7,624 Crores
Profits After Tax	Rs. 7,643 Crores	Rs. 5,247 Crores
Net Profit Margin (%)	20.1	19
Advances/Loans (Approx)	2.92 Lakh Crores	Rs. 1.98 Lakh Crores
Deposits (Approx)	2.81 Lakh Crores	2.46 Lakh Crores
Credit/Deposit Ratio (%)	103.6	80.7
Net Fixed Assets (Approx)	Rs. 5,432 Crores	Rs. 2,378 Crores
Total Assets (Approx)	Rs. 6 lakh Crores	Rs. 3.4 lakh Crores
Debt/Equity Ratio	7.2	9
Net NPA's (%)	0.007	0.002

Terms Used in this Article That you may not remember immediately:

ADR – American Depository Receipts
GDR – Global Depository Receipts
ADR & GDR are used by private organizations to raise funds from foreign investors.

P/E – Price to Earnings Ratio
P/BV – Price to Book Value
EPS – Earnings Per Share
P/E, P/BV, EPS etc are all Market Ratios that are used to gauge the financial health of a company. They were covered in one of our earlier article titled “Market Ratios”. You can revisit the article and learn more about them by Clicking Here

NPA – Non Performing Asset. This is the % of loan money the bank has disbursed but isn’t being repaid by the borrowers. Simply put – this refers to Bad or Defaulted Loans.

Hope you found this article useful. If you wanna see more comparisons, leave a comment in this article or in our facebook page and I will try to do the comparisons…

Disclaimer: All the details above were taken from the respective company websites and other financial websites in the Internet. I have just collated the requisite info in one place and cannot guarantee on the accuracy of the same.