Archive · 20 Jul 2026
ICICI Outperforms HDFC in Q1 Growth and Margins
ICICI Bank did better than HDFC Bank in the first three months of the year.
ICICI had more growth and better profits.
But HDFC has many new branches that are not yet making as much money as they could.
These branches are young and need time to get more customers who keep their money in the bank.
When these branches get older, HDFC thinks they can lower their costs and make more money too.
So, even though ICICI is doing well now, HDFC might catch up in the future.
ICICI Bank showed better growth and margins than HDFC Bank in Q1.
40% of HDFC's 9,700 branches are less than 5 years old.
Young branches typically take time to build low-cost CASA deposits.
HDFC's CASA ratio is currently 32%, compared to ICICI's nearly 40%.
HDFC expects a 40-50 basis point reduction in the cost of funds as branches mature.
- Who
- ICICI and HDFC banks
- What
- Comparison of Q1 performance and future potential
- When
- Q1 (specific quarter not mentioned)
- Where
- India
- Why
- To analyze the sustainability of ICICI's lead over HDFC
ICICI's Current Advantage
HDFC's Potential for Improvement
Performance Metrics
ICICI's Current Advantage
ICICI has shown better growth and margins in Q1.
HDFC's Potential for Improvement
HDFC has a significant number of young branches that can improve over time.
CASA Ratio
ICICI's Current Advantage
ICICI currently has a higher CASA ratio at nearly 40%.
HDFC's Potential for Improvement
HDFC's CASA ratio is at 32% but is expected to improve as branches mature.
Cost of Funds (CoF)
ICICI's Current Advantage
ICICI's current CoF is more favorable.
HDFC's Potential for Improvement
HDFC expects a 40-50 basis point reduction in CoF as their branches mature.
- ICICI's CASA Ratio
- Almost 40%
- HDFC's CASA Ratio
- 32%
- HDFC's Young Branches
- 40% of 9,700 branches are less than 5 years old
- Expected CoF Reduction for HDFC
- 40-50 basis points
- ICICI's Q1 Performance
- Better growth and margins