ICICI vs HDFC Q4 Results: A Comparative Analysis of Two Giants in Indian Banking

India's two leading private lenders—ICICI Bank and HDFC Bank—have reported strong financial performances for the March 2025 quarter (Q4 FY 24-25). While both banks delivered robust profits and healthy balance sheets, a closer comparison reveals differing drivers behind their growth trajectories.

Profit Performance
HDFC Bank posted a 37.1% year-on-year (YoY) jump in net profit, reaching ₹16,512 crore, up from ₹12,047 crore in Q4 FY 23-24. The surge was significantly aided by trading gains and a one-time windfall from the sale of its education finance arm, HDFC Credila.
In comparison, ICICI Bank reported a record net profit of ₹12,630 crore for Q4 FY 24-25, marking an 18% YoY rise. For the full fiscal year FY 24-25, ICICI Bank's net profit reached an impressive ₹47,227 crore, reflecting steady growth from core banking operations and robust loan demand.

Net Interest Income and Margins
HDFC Bank’s Net Interest Income (NII) rose 24.5% YoY to ₹29,080 crore, while Net Interest Margin (NIM) stood at 3.44% (total assets). ICICI Bank, on the other hand, reported an 11% increase in NII to ₹21,193 crore, but outperformed on margins with a NIM of 4.41%, the highest among large private lenders.

Image: Q4 FY 2024-25 Comparison between ICICI Bank and HDFC Bank

Other Income and Provisions
HDFC Bank’s non-interest income more than doubled to ₹18,166 crore, primarily due to ₹7,950 crore in trading and mark-to-market gains, compared to a loss in the same quarter last year. It also made floating provisions of ₹1,090 crore, strengthening its countercyclical buffer.

ICICI Bank, meanwhile, kept its provisioning steady, benefiting from improved asset quality. Its Gross NPA ratio declined to 1.67%, from 1.96% in the previous quarter, indicating sound credit risk management.

Credit and Deposit Growth
ICICI Bank’s loan book grew 13.9% YoY, led by strong retail demand, while deposits rose by 14%. HDFC Bank, buoyed by the merger with HDFC Ltd, saw a dramatic 55.4% growth in advances, with retail loans soaring 108.9% YoY. Deposits increased 26.4%, of which ₹1.29 trillion came from retail.

Capital Strength
HDFC Bank maintained a Capital Adequacy Ratio (CAR) of 18.8%, while ICICI Bank's CAR was not highlighted in the immediate release but remains comfortably above regulatory norms.

Verdict: Core Strength vs Windfall Gains
While HDFC Bank stole the spotlight with headline-grabbing profit growth, a significant portion came from non-core gains and asset sales. ICICI Bank, though more modest in numbers, demonstrated stronger core banking metrics and more stable profitability, with a remarkable ₹47,227 crore net profit for FY 24-25.

Investors and analysts interpret ICICI’s consistency as a sign of sustainable performance, while HDFC Bank’s performance highlights the potential of integrated business operations post-merger.

[Information Sources:
ICICI Bank Q4 & FY 24-25 Financial Results: https://www.icicibank.com/content/dam/icicibank/india/managed-assets/docs/about-us/2025/icici-bank-financial-results-for-quarter-ended-march-31-2025.pdf

HDFC Bank Q4 FY 24-25 Financial Results: https://www.hdfcbank.com/content/bbp/repositories/723fb80a-2dde-42a3-9793-7ae1be57c87f/?path=%2FFooter%2FAbout+Us%2FAbout+Investor+Relations%2Fpdf%2F2024%2Fmarch%2FKey-Parameters-Financial-Results-for-the-Quarter-ended-March-31-2025.pdf]