India’s top private lenders, HDFC Bank and ICICI Bank, reported steady results for the quarter ended September 2025 (Q2FY26), reflecting strong fundamentals despite mixed trends in profitability and margins.
While HDFC Bank posted higher earnings growth and maintained its leadership in profitability, ICICI Bank delivered a stronger operational and asset quality performance, aided by lower provisions and stable margins.
Key financial comparison: HDFC Bank vs ICICI Bank (Q2FY26)
| Particulars | HDFC Bank | ICICI Bank | QoQ trend |
|---|---|---|---|
| Net interest income (₹ cr) | 31,552 | 21,529 | Flat for both |
| PAT (₹ cr) | 18,641 | 12,359 | HDFC +3%; ICICI −3% |
| PPOP (₹ cr) | 27,924 | 17,298 | HDFC −22%; ICICI −8% |
| Provisions (₹ cr) | 3,501 | 914 | HDFC −76%; ICICI −50% |
| GNPA (%) | 1.24 | 1.58 | Improved QoQ for both |
| NNPA (%) | 0.42 | 0.39 | Improved QoQ for both |
| NIM (%) | — | 4.30 | ICICI marginally down (−4 bps) |
| Advances growth (YoY) | — | +10.3% | ICICI strong |
| Deposits growth (YoY) | — | +7.7% | ICICI steady |
Performance overview
HDFC Bank reported a net profit of ₹18,641 crore, up 3% QoQ and 11% YoY, with NII stable at ₹31,552 crore (up 5% YoY). Provisions declined 76% QoQ, while asset quality improved: gross NPA fell to 1.24% from 1.40%, and net NPA eased to 0.42% from 0.47%. However, PPOP fell 22% QoQ due to a sharp drop in non-interest income.
ICICI Bank maintained NII at ₹21,529 crore (up 7% YoY) and posted PAT of ₹12,359 crore, slightly lower QoQ but up 5% YoY. The lender saw strong loan growth (+10.3% YoY) and NIMs at 4.30%, while GNPA improved to 1.58% and NNPA to 0.39%. Provisions halved to ₹914 crore, showcasing prudent risk management.
Overall takeaway
In Q2FY26, HDFC Bank outperformed in absolute profit and scale, but ICICI Bank showed stronger execution on credit quality, cost efficiency, and provision control.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities.
