HDFC Bank vs ICICI Bank: Q4FY26 5 metrics for investors

Why this Q4FY26 comparison is in focus

HDFC Bank and ICICI Bank, India’s two largest private-sector lenders, reported their January to March quarter (Q4FY26) results on Saturday, April 18. The updates drew attention because both banks reported strong performance on key metrics such as loan growth, asset quality and shareholder payouts. The comparison also comes at a time when investor sentiment has been cautious, with the report citing global market volatility linked to the Middle East conflict. Against that backdrop, the banks’ numbers were positioned as early highlights of the Q4FY26 earnings season.

Q4FY26 operational scale: loans and deposits

HDFC Bank continued to lead on scale, with loans growing 12% year-on-year to Rs 2,960,000 crore in Q4FY26. Deposits rose 14% year-on-year to Rs 3,105,000 crore for the quarter. ICICI Bank reported faster growth, with advances up 16% year-on-year to Rs 1,553,000 crore. Its deposits grew 11% year-on-year to Rs 1,794,000 crore.

The difference is clear in the base each bank is working from. HDFC Bank’s balance sheet remains larger, while ICICI Bank’s growth rates were higher on both advances and profitability-linked metrics cited in the report. For investors, these figures help frame whether the quarter was driven by scale-led stability or growth-led momentum.

Profitability metrics: NII, NIM and RoA

HDFC Bank’s net interest income (NII) grew 3% year-on-year and 1% quarter-on-quarter to Rs 33,082 crore. Its net interest margin (NIM) stood at 3.38%, up 3 basis points sequentially. Net profit rose 9% year-on-year to Rs 19,221 crore, while return on assets (RoA) was reported at 1.96%.

ICICI Bank reported NII growth of 8% year-on-year to Rs 22,979 crore. Its NIM was higher at 4.32%, up 2 basis points sequentially. Net profit rose 9% year-on-year to Rs 13,702 crore, and RoA was reported at 2.4%. The profitability comparison highlights ICICI Bank’s higher margin and RoA, while HDFC Bank delivered a larger absolute profit.

Asset quality and credit costs

The quarter showed improvement in asset quality for both banks based on the reported GNPA and NNPA movement. HDFC Bank’s credit cost stood at 0.35%, down 20 basis points quarter-on-quarter. Its gross non-performing asset (GNPA) ratio was 1.15%, down 9 basis points from the December quarter. Net NPA (NNPA) ratio stood at 0.38%, down 4 basis points sequentially.

ICICI Bank’s GNPA ratio was 1.4%, down 13 basis points quarter-on-quarter. Its NNPA ratio was 0.33%, down 4 basis points compared with the December quarter. In headline terms, HDFC Bank reported a lower GNPA, while ICICI Bank reported a lower NNPA.

Dividends: payout per share and yield comparison

Dividend announcements were a key part of the investor comparison in the report. HDFC Bank was said to have moved ahead in FY26 dividend yield after announcing a total payout that lifted yield to 1.87% based on the current share price. The report also noted that HDFC Bank’s combined payout of Rs 15.50 per share exceeded ICICI Bank’s Rs 12 per share final dividend.

While dividend yield comparisons depend on prevailing prices, the stated yield and per-share payouts put HDFC Bank ahead on the specific dividend-income metric highlighted. For investors who prioritise payouts, this is a straightforward numerical distinction from the quarter’s announcements.

Outlook: what management said after earnings

Post-earnings concalls were cited for both banks’ near-term positioning. ICICI Bank’s management indicated that margins are expected to be rangebound in the near term. It also said the bank aims to reduce operating expenditure growth to below topline growth.

HDFC Bank’s management also expects NIMs to remain rangebound, while aiming to maintain momentum in credit growth. It added that deposit growth is expected to continue exceeding credit growth. The bank also stated it aims to maintain its liquidity coverage ratio (LCR) in the 110% to 120% range.

Valuations, targets and analyst positioning

On market value, HDFC Bank was reported at a market capitalisation of Rs 1,231,000 crore, compared with ICICI Bank’s Rs 968,000 crore. Valuation multiples in the report showed HDFC Bank at 2.12x price-to-book (P/B), while ICICI Bank was at 2.68x.

On Bloomberg’s average estimates cited, HDFC Bank’s one-year target price was Rs 1,677, implying 23% potential upside. ICICI Bank’s target was Rs 1,064, implying 34% potential upside. On analyst consensus counts cited, HDFC Bank had 48 ‘buy’ calls and one ‘hold’, while ICICI Bank had 47 ‘buy’ calls.

Sameer Sawant of Mirae Asset Sharekhan, cited in the report, said he sees 15% sustainable growth for ICICI Bank and also said HDFC Bank is yet to reach the desired level of CD ratio. He added that overall Q4 results were quite positive for ICICI Bank.

Key numbers table: HDFC Bank vs ICICI Bank (Q4FY26)

What also shaped market attention

The report described both banks as outperforming D-Street estimates on key financial metrics and dividend yields. It also linked the earnings focus to subdued sentiment amid global developments that had rattled markets. Separately, another brokerage note cited in the provided text mentioned Mirae Asset Sharekhan ‘buy’ calls on HDFC Bank, ICICI Bank and Axis Bank, alongside expectations of broadly stable banking-sector margins.

That brokerage note also cited trading moves: HDFC Bank shares were up 1.50% at Rs 809.20 in the afternoon session mentioned, while ICICI Bank was up 3% at Rs 1,320, and Axis Bank was up 2.52% at Rs 1,351. Market capitalisation figures in that note were Rs 1,245,000 crore for HDFC Bank, Rs 941,000 crore for ICICI Bank, and Rs 420,000 crore for Axis Bank. The targets in the note were Rs 1,025 for HDFC Bank, Rs 1,700 for ICICI Bank, and Rs 1,490 for Axis Bank.

Bottom line from the five-point guide

The quarter’s comparison shows a consistent split across metrics. HDFC Bank led on balance-sheet scale, lower GNPA and the dividend yield and payout figures highlighted in the report. ICICI Bank led on growth rates in advances and NII, and reported higher NIM and RoA.

Near-term management commentary from both sides pointed to rangebound margins, with ICICI Bank focusing on operating cost discipline and HDFC Bank highlighting deposit growth and an LCR range of 110% to 120%. Investors tracking valuation also saw different signals, with HDFC Bank at a lower P/B multiple in the data cited, while Bloomberg’s cited upside potential was higher for ICICI Bank.