ICICI Bank Or HDFC Bank: How The Two Lenders Fared In Q1 FY27

ICICI Bank and HDFC Bank have released their results for the first quarter of FY27. Both banks reported growth in profit and net interest income (NII) for the April-June quarter.

The growth rate, however, was different. ICICI Bank reported higher YoY profit and NII growth, while HDFC Bank continued to report higher absolute numbers.

Profit And NII Performance Of ICICI Bank And HDFC Bank

Standalone net profit of ICICI Bank rose to ₹14,805 crore in Q1 FY27, a growth of 15.9% over ₹12,768 crore in the year-ago quarter. Net interest income (NII) increased 12.7% year-on-year to ₹24,384 crore from ₹21,635 crore in Q1 FY26..

However, HDFC Bank reported a standalone net profit of ₹19,060 crore, up 5% from ₹18,155 crore in Q1 FY26. Its NII rose 7% to ₹33,535 crore against ₹31,438 crore a year ago.

This meant that HDFC Bank continued to lead in terms of absolute profit and NII. But ICICI Bank showed faster growth in both the measures.

The comparison needs context too. HDFC Bank’s Q1 FY26 profit was bolstered by a ₹9,130 crore gain on the sale of its stake in HDB Financial Services at the time of the subsidiary’s IPO. Profit growth was almost 10% year-on-year on an adjusted basis.

What Do The Numbers Indicate About Margins And Asset Quality?

ICICI Bank's standalone net interest margin (NIM) stood at 4.36% in Q1 FY27 versus 4.34% in the year-ago period. The bank’s gross NPA ratio was at 1.38%, down from 1.67% a year ago. The net NPA ratio improved to 0.35% from 0.41%.

HDFC Bank’s NIM stood at 3.26% for this quarter, compared to 3.38% in the March quarter. The decline was due to the falling yield on assets while the cost of funds remained the same. On asset quality, HDFC Bank's gross NPA ratio was 1.17% as of 30 June, up from 1.15% at the end of March. Its net NPA rose to 0.41% from 0.38% in the previous quarter.

HDFC Bank continued to maintain a lower gross NPA ratio while ICICI Bank posted a better year-on-year improvement in its asset quality.

Which Bank Grew Its Business More?

ICICI Bank advances are up 19.6% YoY to ₹16.31 trillion in Q1 FY27; deposits increase 14% to ₹18.33 trillion.

HDFC Bank’s gross advances rose 15.4% YoY to ₹30.61 trillion. Deposits rose 14.7% to ₹31.71 trillion.

The numbers show HDFC Bank’s larger balance sheet with advances and deposits way higher than that of ICICI Bank. ICICI Bank also reported faster loan growth in the quarter.

Deposit mobilisation will continue to be a key area to watch for both lenders as banks try to balance credit growth with funding needs.

HDFC Bank maintained its leadership in absolute profit, balance-sheet size, and profit growth, while ICICI Bank posted faster growth in profit and advances. ICICI Bank said NPA ratios improved, while HDFC Bank's margins came under some pressure during the quarter.

Going forward, investors may look at how both banks manage margins, deposit growth and asset quality as the financial year progresses.

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