HDFC Bank vs ICICI Bank: Q4FY26 numbers, targets

Market focus after Q4FY26 results

HDFC Bank and ICICI Bank stayed in focus as investors reacted to their March quarter (Q4FY26) results announced over the weekend. Analysts broadly retained bullish views on both private lenders, but several notes suggested ICICI Bank could see a re-rating over the medium term. For HDFC Bank, commentary stayed more watchful on the pace of loan growth, even as deposit traction was highlighted as a positive.

The split market reaction added to the debate. ICICI Bank shares were up in Monday’s session, while HDFC Bank traded largely flat to slightly weak. The divergence came despite both banks reporting year-on-year profit growth and improvements in asset quality.

How the stocks moved on Monday

ICICI Bank spurted over 2% to an intra-day high of ₹1,376 and was up 1.5% at ₹1,366 as of 10:30 AM. HDFC Bank moved between a high of ₹810 and a low of ₹790 and was seen around ₹798 on the NSE.

Technical commentary in the report also leaned toward ICICI Bank. Ajit Mishra said the stock has bounced back above its long-term moving average and was roughly ₹100 away from its record high. The daily chart level cited for the 200-day exponential moving average (200-DEMA) was ₹1,350.

HDFC Bank Q4FY26: profit growth, deposit traction

HDFC Bank reported Q4FY26 net profit of ₹19,220 crore to ₹19,221 crore, up 9% year-on-year, supported by steady revenue growth and lower provisions. Net interest income (NII) was reported at about ₹33,080 crore to ₹33,082 crore, up 3.2% year-on-year.

Margins were stable to slightly higher sequentially. Net interest margins (NIMs) on total assets increased 3 basis points quarter-on-quarter to 3.38%.

On balance sheet growth, total loans were reported at around ₹29.4 trillion (₹2,940,000 crore), up 12.1% year-on-year and 4.1% quarter-on-quarter. Growth was led by SME loans (up 17.2% year-on-year) and corporate loans (up 13% year-on-year).

ICICI Bank Q4FY26: beat on profit, strong loan growth

ICICI Bank reported a stronger earnings beat versus Street expectations in the coverage cited. Net profit for Q4FY26 was ₹13,700 crore to ₹13,702 crore, up about 8% to 8.5% year-on-year and up 21% quarter-on-quarter.

NII came in at ₹22,979 crore to ₹22,980 crore, up 8.4% year-on-year and 4.8% quarter-on-quarter. NIM was 4.32%, up 2 basis points sequentially.

Loan growth was a key differentiator. Total loans grew 15.8% year-on-year and 6% quarter-on-quarter, led by business banking (up 24.4% year-on-year and 7.6% quarter-on-quarter) and retail loans (up 11% year-on-year and 5.5% quarter-on-quarter). Domestic corporate loans also rose 9.3% year-on-year and 3.1% quarter-on-quarter.

Deposits, CASA and liquidity metrics

Deposits were highlighted as improving for both banks, with differing specifics across notes. ICICI Bank’s deposits were cited as rising 10.4% year-on-year and 11.4% quarter-on-quarter, with the CASA ratio improving to 41.4%.

HDFC Bank was described as seeing “strong traction in deposit growth,” and another comparison note cited deposits growing 14% year-on-year to ₹31.05 lakh crore (₹3,105,000 crore). That deposit momentum was also framed as helping balance-sheet comfort post the HDFC merger.

Liquidity coverage ratio (LCR) was mentioned in broker commentary as well. One note flagged HDFC Bank’s LCR at 114% and said it may limit balance sheet flexibility in the near term, while HDFC Bank management was cited as aiming to maintain LCR between 110% and 120%. For ICICI Bank, LCR was cited at 124% in one brokerage view.

Asset quality and credit costs: improvement across the board

Both lenders were said to have clocked improvement in asset quality and provisions. In the comparison note, HDFC Bank’s gross NPA (GNPA) ratio was cited at 1.15%, while ICICI Bank’s GNPA was cited at 1.4% in Q4FY26.

Emkay Global said ICICI Bank saw a strong bounce back in credit growth after a conscious pull-back in H1FY26, supported by opportunistic corporate growth and traction in rural segments (including gold loans) and business banking. The same note highlighted “negligible provisions,” a 9% profit beat, and best-in-class RoA of 2.4%.

For HDFC Bank, broker commentary suggested the earnings path is being watched closely as the bank works on loan-to-deposit ratio (LDR) improvement. Equirus Securities said HDFC Bank may see calibrated loan growth as it focuses on LDR improvement, and that earnings will depend more on operating leverage and mix improvement than balance sheet expansion.

Dividends: HDFC Bank leads on payout in FY26

Dividend announcements became a key talking point for retail investors. HDFC Bank announced a final dividend of ₹13 per share for FY26, and the same report cited an earlier special dividend of ₹5.50 per share, taking total payout to ₹18.50 per share.

ICICI Bank announced a dividend of ₹12 per share, up from ₹11 last year. Another comparison line in the provided text stated HDFC Bank’s “combined payout” as ₹15.50 per share and said this lifted yield to 1.87% based on the current share price.

Brokerage calls and target prices: what changed

Brokerages largely retained positive ratings, but target prices moved in both directions.

Antique Stock Broking maintained a ‘Buy’ rating on HDFC Bank but cut its target price to ₹1,055 from ₹1,100, saying a meaningful acceleration in loan growth remains the key trigger for re-rating. Equirus retained a ‘Long’ rating with a target price of ₹1,160.

For ICICI Bank, JM Financial maintained a ‘Buy’ rating and raised its target price to ₹1,630 from ₹1,550, citing sector-leading loan growth, better NIM management and strong asset quality trends. Emkay Global kept its ‘Buy’ rating with an unchanged target of ₹1,785.

A separate roundup cited HDFC Bank target prices in a range of ₹915 to ₹1,200, and ICICI Bank targets in a range of ₹1,550 to ₹1,800. It also listed Morgan Stanley as ‘Underweight’ on ICICI Bank with a target price of ₹15, as stated in the text.

Key numbers snapshot

Valuation markers cited in the comparison note

The comparison note also provided valuation anchors. HDFC Bank’s market cap was cited at ₹12.31 lakh crore (₹1,231,000 crore) versus ICICI Bank at ₹9.68 lakh crore (₹968,000 crore). Price-to-book (P/B) was cited at 2.12x for HDFC Bank and 2.68x for ICICI Bank.

These numbers aligned with the broader positioning in the notes: ICICI Bank continuing to command a premium valuation due to execution and growth, while HDFC Bank is framed as a steadier story where investors are watching for a clearer loan-growth acceleration.

What investors are watching next

For ICICI Bank, brokerage commentary pointed to sustained loan growth, margin discipline and asset quality as the main drivers behind premium valuation and potential re-rating. For HDFC Bank, the repeated watchpoint is whether loan growth meaningfully accelerates while the bank continues to gain deposit market share.

Management commentary referenced in the text also suggested both banks expect NIMs to be rangebound. HDFC Bank was cited as focusing on deposit growth exceeding credit growth and maintaining LCR in the 110% to 120% band, while ICICI Bank management was cited as expecting margins to be rangebound and aiming to keep operating expenditure growth below topline growth.

Conclusion

Q4FY26 delivered steady profit growth and improving asset quality for both HDFC Bank and ICICI Bank, but the market rewarded ICICI Bank more immediately on stronger growth and margin metrics. Brokerages broadly kept ‘Buy’ calls on both, while adjusting targets based on the quarter’s trends. The next set of cues, as reflected in the notes, will be loan-growth trajectory for HDFC Bank and the sustainability of ICICI Bank’s premium valuation amid expectations of rangebound margins.