As the financial year draws to a close, it’s that exciting time when numbers reveal insights and dividends can brighten the outlook for investors. Recently, two prominent private banks in India unveiled their earnings reports, showcasing not only their fiscal health but also announcing dividends that are sure to delight shareholders.

With the latest results for the January-March 2025 quarter, ICICI Bank and HDFC Bank stand out as key players in the banking sector. Let’s explore the highlights of their financial performances, particularly focusing on dividend announcements and stock market movements.

ICICI Bank and HDFC Bank: Dividend Showdown for Q4FY25

ICICI Bank, the second-largest private lender in India, has declared a remarkable dividend of ₹11 per equity share (with a face value of ₹2) for FY25. This marks the bank’s most substantial dividend payout in a decade and is pending approval at the upcoming Annual General Meeting (AGM). The exact date for dividend eligibility will be communicated soon.

Dividend Trends Over the Years

• ICICI Bank has consistently increased its dividend payouts over the years:

  • FY21: ₹2 per share
  • FY22: ₹5 per share
  • FY23: ₹8 per share
  • FY24: ₹10 per share
  • FY25: ₹11 per share
• HDFC Bank has followed a similar trajectory, with its dividends reflecting steady growth:
  • FY21: ₹6.50 per share
  • FY22: ₹15.50 per share
  • FY23: ₹19 per share
  • FY24: ₹19.50 per share
  • FY25: ₹22 per share

Both banks have demonstrated a solid commitment to rewarding their shareholders through increasing dividends year after year, with HDFC Bank consistently offering higher payouts.

Financial Performance: A Closer Look

ICICI Bank reported an impressive net profit of ₹12,629.58 crore for the March quarter, reflecting an 18% year-on-year increase. Its net interest income (NII) stood at ₹21,192.94 crore, up 11% from the previous year.

In contrast, HDFC Bank announced a net profit of ₹17,616 crore, marking a 6.7% YoY growth. The bank’s NII also showed a healthy rise of 10.3% YoY, reaching ₹32,070 crore.

Stock Performance Analysis

• ICICI Bank’s stock has appreciated nearly 9% over the past five years and surged 7% in just the last month. Overall, the stock is up 12% over the past six months and has provided a 32% return over the last year. Year-to-date (YTD), it has climbed by almost 10%, with a market capitalization of ₹10.02 lakh crore. Notably, its stock traded between a 52-week high of ₹1,408.90 and a low of ₹1,048.10.

• HDFC Bank shares have also seen positive movement, increasing 8% in the last five days and 9% over the past month. The stock has risen 10% in six months and 14% over the past year, with a YTD return of around 7%. Its market cap is currently ₹14.59 lakh crore, with a 52-week high of ₹1,919.70 and a low of ₹1,426.80.

Company Backgrounds: A Brief Overview

ICICI Bank originated from a financial institution established by the government in 1955 and evolved into one of India’s leading private banks. Incorporated in 1994 as a subsidiary of ICICI Limited, it merged with its parent company in 2002. Today, ICICI Bank operates in multiple segments, including investment banking and insurance, with a growing international presence in Canada and the UK.

HDFC Bank, initially a pioneer in housing finance through its parent company HDFC Limited since 1977, was established in 1994 and commenced operations in 1995. The recent merger of HDFC Limited with HDFC Bank in 2022 has created a formidable entity in both retail banking and housing finance.

In summary, both ICICI Bank and HDFC Bank have made significant strides in their financial performance and shareholder returns. As investors look ahead, these developments are pivotal in shaping the landscape of the Indian banking sector.