ICICI Bank Surpasses HDFC Bank Across Financial Metrics: A New Era in Indian Banking?

In a surprising twist in the Indian banking landscape, ICICI Bank has emerged as a stronger performer than HDFC Bank across several critical financial metrics, sparking talks of a power shift in the private banking space. While HDFC Bank recently entered the elite ₹15 lakh crore market capitalization club—an achievement in itself—investors and analysts are beginning to shift their gaze toward ICICI Bank’s rising dominance.

ICICI Bank’s consistent growth trajectory has started to overshadow India’s largest private lender, HDFC Bank.

For instance, in FY25, ICICI Bank’s profit growth stood at 15%, outpacing HDFC Bank’s 11%. Even though both banks showed similar net interest income (NII) growth, ICICI Bank held an edge with a higher net interest margin (NIM) of 4.41%, compared to HDFC Bank’s 3.65%. These numbers highlight a more efficient lending model and better profitability per rupee lent for ICICI Bank.

Another key area where ICICI Bank is pulling ahead is in loan and deposit growth. As of FY25, ICICI Bank reported 14% growth in both advances and deposits, maintaining a healthy balance. In contrast, HDFC Bank’s advances grew at nearly half the pace of its deposits, showing a slight lag in credit deployment.

The merger of HDFC Ltd with HDFC Bank did boost HDFC’s loan portfolio significantly, but it also created fresh challenges. The post-merger loan-to-deposit ratio (LDR) spiked to over 100%, although HDFC Bank has since brought it down to 96.5% by the end of FY25. Despite this improvement, the bank still faces pressure to align growth with stability.

This emerging narrative points to a strategic shift in Indian banking, where traditional leaders are now being tested by more agile, efficient competitors. ICICI Bank’s steady performance is not just catching attention—it’s redefining leadership benchmarks in the financial sector.

As both giants continue to evolve in a highly competitive market, all eyes are now on how this rivalry will shape the next chapter of India’s private banking story.