Indian Banks HDFC vs ICICI
HDFC and ICICI are two names that stand apart among others when we talk of private sector banks in India. Both are fairly successful banks giving stiff competition to government banks. The reason of their success lies in the fact that both have introduced a greater efficiency of services and also host of new services that were demanded by consumers.
HDFC Bank Ltd.
HDFC was among the first private sector banks set up in India after RBI allowed their establishment in 1994. It was promoted by Housing Development Corporation of India, and is still known as HDFC Bank. It was founded by Bibu Verghese and its headquarters are in Mumbai. As of 2010, its operating incomes were $958 million and profit stood at $658 million. Times Bank Limited, and Centurion Bank of Punjab have merged with HDFC Bank since then, increasing the assets of the Bank. Today HDFC has a Pan Indian presence with over 1700 branches and over 5000 ATM’s.
ICICI is the largest private sector bank and 2nd largest bank overall in India. It was formerly known as Industrial Credit and Investment Corporation of India. The bank has its presence all over India and even abroad (Present in 18 countries) with more than 2000 branches and over 5000 ATM’s. It provides a host of banking services to both corporate and retail customers apart from being fairly successful in life insurance (ICICI Prudential), venture capital (ICICI Direct) and asset management. It is the largest home loan provider in the country. ICICI ranks number one in providing credit cards in India. ICICI has a strong presence overseas and has offices in 19 countries. ICICI has been notorious in employing goons for recovering its loans from defaulters and has been pulled by different courts and consumer forums in this regard.
As far as differences between the two banks are concerned, both are equally popular employing cutting edge technologies though ICICI seems to be ahead in aggressive branding having Amitabh Bachchan as its brand ambassador.
Difference between HDFC and ICICI
• HDFC has a niche market while ICICI is all over the place.
• HDFC has an unmatched growth record at 30% while ICICI has had swings on this front.
• On a price to adj book basis ICICI trades at 2 times while HDFC trades at 4.5 times.
• ICICI has a lower PE ratio than HDFC. PE ratio of HDFC is at 19, that of ICICI stands at 11%.
• Reach of ICICI bank and ATM’s is much more than HDFC.
• There is a huge difference in raising of equity in the two banks.
• ICICI Netbanking is far superior than that of HDFC.
• HDFC has low NPA’s at 0.2% of advances while ICICI has NPA’s at 2.7% of advances.