India Financials: HDFC vs. ICICI-1Q27: What‘s changed?

Research evidence excerpt

India Financials: HDFC vs. ICICI-1Q27: What‘s changed?

21 July 2026

India Financials

India Financials: HDFC vs. ICICI- 1Q27: What's changed?

The current quarterly results further reinforced the divergence in operating momentum Pranav Gundlapalle

+91 226 842 1407 between ICICI and HDFC Bank. ICICI not only delivered industry-leading loan growth, but

pranav.gundlapalle@bernsteinsg.com also gained a modest edge on deposit growth, supported by a strengthening retail franchise

and a superior liquidity position. HDFC, while reporting an improvement in loan growth,

Ishan Mittal continued to lag system credit growth owing to persistent weakness in retail lending, and

+91 226 842 1442

ishan.mittal@bernsteinsg.com also faced renewed pressure on margins from a sharper decline in loan yields. As industry

conditions gradually improve and competitive pressures ease, ICICI appears increasingly

Anirudh Gupta well positioned to sustain superior growth without a meaningful compromise on profitability,

+91 226 842 1456 strengthening the investment case following a meaningful valuation correction.

anirudh.gupta@bernsteinsg.com

- Loans: ICICI extends growth leadership while HDFC remains retail-constrained-

ICICI Bank delivered industry-leading loan growth (~20% YoY), supported by broad-based

strength across business banking, corporate lending and a continued recovery in non-

mortgage retail loans. HDFC Bank’s loan growth improved to ~15% YoY, led by business

banking and corporate lending, but continued to trail system growth due to persistent

weakness in retail segments.

- Deposits: ICICI gains a marginal edge over HDFC- While HDFC reported stronger

period-end deposit growth, ICICI moved ahead on average deposit growth across CASA,

TDs and total deposits.