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HDFC Bank vs. ICICI: Which should be your value bet?

HDFC Bank vs. ICICI: Which should be your value bet?
HDFC Bank vs. ICICI: Which should be your value bet?
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Synopsis

HDFC Bank, after the merger with HDFC, has faced many challenges including slow growth and a high loan-to-deposit ratio. While its stock has risen 9% annually since 2020, ICICI Bank has outpaced it with a 29% return. Despite this, HDFC Bank is focusing on retail growth and profitability, signalling a potential comeback.

For the longest time, HDFC Bank was known as the “30% bank”. No matter what happened, the bank would grow its profits by 30% quarter on quarter. The growth was driven by high-quality merged assets and low non-performing assets (NPAs) compared to its peers. In 2023, the bank merged with HDFC, and the effects of the merger are still visible on its bottom line. This is set to change. Whether the INR14 lakh crore-market cap bank will get its growth
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