HDFC Bank Vs ICICI Bank: Which Is Better, Stock You Should Buy Post Q1FY26 Results?

Last Updated:July 21, 2025, 14:19 IST

HDFC vs ICIC Which is Better: Shares of HDFC Bank and ICICI Bank were up 2% each on Monday’s trading session; Which one should you buy post Q1 results?

HDFC Bank Vs ICICI Bank: Shares of HDFC Bank and ICICI Bank were up 2% each on Monday’s trading session after both private sector lenders announced their financial results for the quarter ended June 30, 2025.

HDFC Bank shares have risen over 19% in the past six months and one year, while ICICI Bank shares have gained nearly 15% over the same period.

Q1 FY26 Results: Head-to-Head

HDFC Bank

HDFC Bank posted a 12.24% year-on-year (YoY) rise in standalone profit after tax (PAT) at Rs 18,155 crore, driven by solid deposit mobilisation and higher other income. However, consolidated profit dipped slightly by 1.31% YoY.

While the bank recorded steady loan growth and a 16.2% YoY jump in deposits, there was a mild deterioration in asset quality. Gross and net non-performing assets (GNPA and NNPA) rose marginally, and the net interest margin (NIM) declined to 3.35% from 3.6% a year ago.

The board approved a special dividend of Rs 5 per share (record date: July 25), along with the bank’s first-ever 1:1 bonus issue. The record date for the bonus will be announced later.

ICICI Bank

ICICI Bank reported a stronger performance with a 15.5% YoY increase in standalone PAT to Rs 12,768 crore and a 15.9% rise in consolidated PAT to Rs 13,558 crore.

Net interest income (NII) grew 10.6% to Rs 21,635 crore. Asset quality improved significantly, with GNPA falling to 1.67% and NNPA to 0.41% (from 2.15% and 0.43% YoY). Although NIM saw a slight dip, the bank maintained strong loan and deposit growth and robust core profitability.

Which Stock to Buy?

Anuj Gupta, Director at Ya Wealth Research & Advisory, recommends investing in both stocks, given their strong Q1 performance.

“Both banks are moving at a similar pace. Investors can consider splitting their allocation equally between the two,” he said.

Analyst Ratings And Target Price

HDFC Bank

Antique Stock Broking has a ‘Buy’ rating on HDFC Bank with a target price of Rs 2,270. The brokerage considers HDFC Bank its top pick among large private banks, citing tailwinds such as better deposit traction, reduction in RIDF investments, and operating leverage gains from network expansion.

ICICI Bank

Antique has also reiterated a ‘Buy’ rating on ICICI Bank, raising the target price to Rs 1,680 from Rs 1,640. The firm expects return on assets (RoA) of 2.3–2.4% and return on equity (RoE) of 16–17% over FY27–28. While loan growth has moderated in line with sector trends, recovery is expected in the second half of FY26.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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