HDFC Bank Vs ICICI Bank: Which Stock Should You Buy After Q4 Results? Five-Point Guide

HDFC Bank Vs ICICI Bank: India's top two leading private sector lenders announced their January-March quarter results for fiscal 2025-26 (Q4FY26) on Saturday, April 18, reporting a strong performance led by high loan growth, cut in provisions, and record high dividend payouts. The lenders have topped D-Street estimates in terms of financial metrics and dividend yields, especially amid the subdued investor sentiment due to the impact of the Middle East conflict that has rattled financial markets worldwide. 

Analysts and brokerages expected the US-Iran war to impact bank remittances and profit volumes. However, improved asset quality and income have put HDFC and ICICI Bank among the initial star performers in the Q4FY26 earnings season! Market participants will now shift focus on the two stocks as domestic equity benchmarks open for trading on April 20. To understand the key metrics, here's a five-point comparative guide between the two leading banking majors for investors to take a call during the trading session.

ALSO READ: ICICI Bank Q4 Review: Brokerages Retain 'Buy' Calls - Check Target Prices, Risks, Outlook

HDFC Bank Vs ICICI Bank: Which stock should you buy after Q4 results?

1. HDFC Bank Vs ICICI Bank: Operational metrics

For India's top private lender, loans grew 12% YoY to Rs 29.60 lakh crore during the March quarter of FY26 and deposits grew 14% YoY to Rs 31.05 lakh crore. HDFC Bank's net interest income grew 3% YoY and 1% QoQ to Rs 33,082 crore, while NIM stood at 3.38%, up three bps QoQ. Net profit rose 9% YoY to Rs 19,221 crore, while RoA stands at 1.96%.

For the country's second-largest private bank, advances grew 16% YoY to Rs 15.53 lakh crore during the fourth quarter of FY26 and deposits grew 11% YoY to Rs 17.94 lakh crore. ICICI Bank's net interest income grew 8% YoY to Rs 22,979 crore, while NIM stood at 4.32%, up two bps sequentially. Net profit rose 9% YoY to Rs 13,702 crorem and RoA stands at 2.4%.

2. HDFC Bank Vs ICICI Bank: Asset Quality

HDFC Bank's credit cost stood at 0.35%, down 20 bps QoQ, while gross non-performing asset ratio GNPA ratio was at 1.15%, down nine bps compared to the December quarter. Net NPA ratio stood at 0.38%, down four bps QoQ. For ICICI Bank, gross NPA ratio stands at 1.4%, down 13 bps QoQ, while net NPA ratio stood at 0.33%, down four bps compared to the December quarter.

3. HDFC Bank Vs ICICI Bank: Dividend Yield

HDFC Bank has taken the lead over ICICI Bank in the FY26 dividend yield race after announcing a higher total payout that lifted yield to 1.87% based on the current share price. For investors tracking dividend income, the comparison is simple: HDFC Bank's combined payout of Rs 15.50 per share is higher than ICICI Bank's Rs 12 per share final dividend. That has put HDFC Bank ahead on the available yield comparison after the final announcements.

HDFC Bank Vs ICICI Bank
Photo Credit: NDTV Profit

4. HDFC Bank Vs ICICI Bank: Outlook

According to post-earnings concalls, ICICI Bank's management said the lender is expecting margins to be rangebound in the near-term. The bank also aims to reduce operating expenditure growth lower than the topline growth. HDFC Bank's management expects NIMs to be rangebound going forward and eyes continued momentum in credit growth. It added that the bank's deposit growth will continue to exceed credit growth. It also aims to maintain LCR between 110% to 120%

ALSO READ: ICICI Bank Q4 Results: Net Profit Rises 8.4% To Rs 13,702 Crore On Sharp Decline In Provisions

5. HDFC Bank Vs ICICI Bank: Valuations, Consensus

HDFC Bank commands a market cap of Rs 12.31 lakh crore, while ICICI Bank's mcap is Rs 9.68 lakh crore. HDFC Bank P/B ratio is 2.12x, while ICICI Bank's stands at 2.68x. According to an average of Bloomberg estimates, HDFC Bank one-year target price is pegged at Rs 1,677, showing a potential upside of 23%. ICICI Bank's target is Rs 1,064, showing a potential upside of 34%.

Coming to analysts consensus on stock calls, HDFC Bank achieved 48 'buy' calls one 'hold', while ICICI Bank got 47 'buy' calls. Sameer Sawant, Mirae Asset Sharekhan told NDTV Profit that he eyes a growth of 15% sustainable for ICICI Bank, whereas HDFC Bank is yet to reach desired level of CD ratio. ''Overall Q4 results are quite positive for ICICI Bank,'' said Sawant.

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