HDFC Bank vs ICICI Bank: A Quick Comparison of Q1FY26 Financial Performance

India’s top two private sector banks, HDFC Bank and ICICI Bank—have reported their Q1 FY2025-26 (April–June 2025) results. While both banks continue to show strong fundamentals, steady credit performance, and strategic provisioning, their approaches and outcomes differ in key financial metrics. Here's a deep dive into their performance this quarter.

HDFC Bank vs ICICI Bank: Q1 FY26 Snapshot

HDFC Bank Q1FY26 Performance

HDFC Bank reported a strong revenue surge in Q1 FY26, thanks in part to a transaction gain of ₹91.3 billion from a partial divestment in its subsidiary HDB Financial Services. This contributed to a net revenue of ₹531.7 billion, up from ₹405.1 billion in the same quarter last year. Even without the one-time gain, the bank saw healthy growth in net interest income (NII), which rose by 5.4% YoY to ₹314.4 billion.

However, the core net interest margin (NIM) moderated slightly to 3.35%, down from 3.46% in the previous quarter, reflecting the impact of deposits catching up in rate repricing.

In terms of profitability, HDFC Bank posted a Profit After Tax (PAT) of ₹181.6 billion, a 12.2% YoY growth, while Profit Before Tax (PBT) came in at ₹212.9 billion. What’s notable is the bank’s countercyclical approach—setting aside ₹90 billion as floating provisions and another ₹17 billion in contingent provisions, reflecting a cautious stance in an otherwise benign credit environment.

On the asset quality front, Gross NPAs rose slightly to 1.40% of advances (1.14% excluding agriculture), and Net NPAs stood at 0.47%.

The bank also announced a 1:1 bonus issue and a ₹5 interim dividend, boosting investor sentiment.

ICICI Bank Q1FY26 Earnings Highlights

ICICI Bank delivered a solid, broad-based performance in Q1 FY26, driven by consistent growth in both interest and non-interest income. Net interest income (NII) jumped 10.6% YoY to ₹21,635 crore, while core operating profit grew 13.6% YoY to ₹17,505 crore. The bank maintained a strong net interest margin of 4.34%, slightly lower than the 4.41% in the previous quarter, but still among the best in class.

ICICI’s Profit After Tax (PAT) grew by 15.5% YoY to ₹12,768 crore, while PBT climbed to ₹16,931 crore, a 15.2% increase.

In terms of credit growth, total advances rose 11.5% YoY, with the business banking segment leading the charge (29.7% YoY growth). Retail loans grew more moderately at 6.9%, comprising a major share of the portfolio.

Asset quality remained solid: Gross NPAs fell to 1.67%, while Net NPAs improved to 0.41%. ICICI's provisioning coverage ratio remains robust at 75.3%.

ICICI also added 83 new branches, expanding its footprint to over 7,000 branches, signaling aggressive physical and digital outreach.

Also Read: HCL Tech vs Tech Mahindra: A Closer Look at Q1 FY26 Results and Key Metrics

Conclusion

HDFC Bank has focused this quarter on fortifying its balance sheet with higher provisions and monetizing its stake in subsidiaries. This demonstrates prudence and long-term resilience planning. Meanwhile, ICICI Bank shows all-round operational strength, with growth in every key metrics, NII, retail loans, and profitability.

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