HDFC Bank vs ICICI Bank: Which Stock Offers Better Value After Q1 Earnings?
Shares of HDFC Bank and ICICI Bank increased by almost 2% on Monday after their Q1 FY26 earnings were announced. Investors are left wondering which stock is more appealing at the moment, given that each lender has reported strong results. In light of the banks’ most recent quarterly reports, this research contrasts the important financials, growth patterns, and market sentiment to assist you in determining which bank would be a better addition to your portfolio.
Over the last six months and one year, HDFC Bank shares have appreciated by more than 19%, while ICICI Bank shares have risen by almost 15% during the same timeframe.
HDFC Bank Versus ICICI Bank: During Monday’s trading session, shares of HDFC Bank and ICICI Bank both experienced a 2% rise following the release of their financial results for the quarter that concluded on June 30, 2025.
Results FY26: Side-by-Side Comparison
ICICI Bank
ICICI Bank delivered a stronger performance with a 15.5% YoY increase in standalone PAT to Rs 12,768 crore and a 15.9% rise in consolidated PAT to Rs 13,558 crore.
Net interest income (NII) increased by 10.6% to Rs 21,635 crore. Asset quality significantly improved, with GNPA decreasing to 1.67% and NNPA to 0.41% (down from 2.15% and 0.43% YoY). Despite a slight drop in NIM, the bank continued to demonstrate robust loan and deposit growth alongside strong core profitability.
HDFC Bank
The bank showed consistent loan growth and a 16.2% YoY increase in deposits, but there was a minor decline in asset quality. Gross and net non-performing assets (GNPA and NNPA) rose slightly, while the net interest margin (NIM) fell to 3.35% from 3.6% a year earlier.
HDFC Bank reported a 12.24% year-on-year (YoY) increase in standalone profit after tax (PAT) at Rs 18,155 crore, fueled by strong deposit growth and higher other income. However, consolidated profit experienced a slight decline of 1.31% YoY.
The board approved a special dividend of Rs 5 per share (record date: July 25), in addition to the bank’s inaugural 1:1 bonus issue. The record date for the bonus issue will be disclosed later.
“Both banks are progressing at a comparable rate. Investors may want to evenly distribute their allocation between the two,” he stated.
Ratings and Target Price
ICICI Bank
Additionally, Antique has reaffirmed its “Buy” recommendation on ICICI Bank, increasing the target price from Rs 1,640 to Rs 1,680. Over FY27–28, the company anticipates a return on equity (RoE) of 16–17% and a return on assets (RoA) of 2.3–2.4%. Although loan growth has slowed in accordance with industry trends, a recovery is anticipated in FY26’s second half.
HDFC Bank
Antique Stock Broking has given HDFC Bank a ‘Buy’ recommendation with a target price of Rs 2,270. The brokerage considers HDFC Bank its preferred option among major private banks, emphasizing benefits such as enhanced deposit growth, a decrease in RIDF investments, and gains in operational efficiency from network expansion.
