Battle of the Banks: HDFC vs ICICI - Which Stock to Invest in After Q4 2025 Results?

The recent financial performance of two major private sector banks in India, HDFC Bank and ICICI Bank, has placed them squarely in the spotlight as traders prepare for Monday’s market session. Both banks released their impressive financial results for the March quarter of FY25 on April 19, leading to significant movement in their share prices. HDFC Bank’s stock rose by nearly 1.50%, closing at ₹1,905.80, while ICICI Bank’s shares surged over 3.37% to reach ₹1,407. Notably, the Indian stock market was closed on Friday in observance of Good Friday.

Strong Financial Results Inspire Investor Confidence

According to Seema Srivastava, a Senior Research Analyst at SMC Global Securities, both banks are now viewed as solid long-term investment choices, following their fourth-quarter results. However, she emphasizes that investors should pay attention to the subtle differences in their performances.

Financial Performance: HDFC Bank vs. ICICI Bank

When analyzing the financial outcomes of both banks, here’s how they stack up:

Revenue and Profitability

HDFC Bank reported a net revenue of ₹11,440.9 billion, which reflects a slight year-over-year decline due to the absence of a one-time gain from HDFC Credila. However, their net interest income increased by 10.3% to ₹11,320.7 billion, indicating steady growth.
In contrast, ICICI Bank excelled in profitability with an 18% year-over-year increase in net profit for Q4 and a 15.5% rise for FY2025, totaling ₹47,227 crore. The bank’s 11% growth in net interest income and an impressive net interest margin (NIM) of 4.41% highlight its effective asset utilization, outperforming HDFC Bank’s NIM of 3.54%.

Balance Sheet and Growth Dynamics

HDFC Bank boasts a larger balance sheet at ₹39,102 billion compared to ICICI’s total advances of ₹13,41,766 crore. Additionally, HDFC leads in deposit base, with average deposits of ₹25,280 billion versus ICICI’s ₹14,86,635 crore.
However, ICICI Bank has demonstrated superior loan portfolio growth, achieving a 13.3% increase, particularly in business banking, which grew by 33.7%.

Asset Quality and Capital Position

In terms of asset quality, HDFC Bank holds the advantage with a gross NPA of 1.33% and a net NPA of 0.43%, while ICICI Bank reports 1.67% and 0.39% respectively. Both banks maintain robust provisioning coverage.
On the capital front, HDFC Bank leads with a Capital Adequacy Ratio (CAR) of 19.6% and a Common Equity Tier 1 (CET1) of 17.2%, compared to ICICI’s CAR of 16.55% and CET1 of 15.94%.

Dividends and Branch Expansion

HDFC Bank declared a dividend of ₹22 per share, significantly higher than ICICI’s ₹11 per share. Meanwhile, ICICI Bank is aggressively expanding its reach, having opened 241 new branches recently.

Investment Insights: Which Bank to Choose?

In the ongoing discussion about investment opportunities, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, notes that HDFC Bank recently tested its all-time high, facing some supply pressure in the 1880–1910 range. Despite this, the bank shows a bullish trend, with potential upward movement toward the 1945–1965 levels on the horizon.

Conversely, ICICI Bank presents a more attractive option for short-term investors, having reached all-time highs and broken out of a rectangle consolidation pattern. Jain suggests that with increasing momentum, ICICI Bank is poised to target the 1500 mark, presenting a favorable risk-reward scenario.

Conclusion: A Balanced Approach

Both HDFC Bank and ICICI Bank exhibit strong fundamentals. HDFC Bank is ideal for conservative investors looking for stability, thanks to its solid asset quality and larger deposit base. On the other hand, ICICI Bank offers better profit momentum and faster growth, making it suitable for those seeking higher returns with moderate risk. For a well-rounded investment strategy, considering a diversified portfolio in both banks may yield balanced exposure to the sector.