HDFC Bank Vs ICICI Bank: Which Stock Deserves A Spot In Your Portfolio Post Q1FY26?
Shares of HDFC Bank and ICICI Bank were up 2% each on Monday's trading session; Which one should you buy post Q1 results?
HDFC Bank Vs ICICI Bank: Shares of HDFC Bank and ICICI Bank were up 2% each on Monday's trading session after both private sector lenders announced their financial results for the quarter ended June 30, 2025.
HDFC Bank shares have risen over 19% in the past six months and one year, while ICICI Bank shares have gained nearly 15% over the same period.
Q1 FY26 Results: Head-to-Head
HDFC Bank
HDFC Bank posted a 12.24% year-on-year (YoY) rise in standalone profit after tax (PAT) at Rs 18,155 crore, driven by solid deposit mobilisation and higher other income. However, consolidated profit dipped slightly by 1.31% YoY.
While the bank recorded steady loan growth and a 16.2% YoY jump in deposits, there was a mild deterioration in asset quality. Gross and net non-performing assets (GNPA and NNPA) rose marginally, and the net interest margin (NIM) declined to 3.35% from 3.6% a year ago.
The board approved a special dividend of Rs 5 per share (record date: July 25), along with the bank's first-ever 1:1 bonus issue. The record date for the bonus will be announced later.
Net interest income (NII) grew 10.6% to Rs 21,635 crore. Asset quality improved significantly, with GNPA falling to 1.67% and NNPA to 0.41% (from 2.15% and 0.43% YoY). Although NIM saw a slight dip, the bank maintained strong loan and deposit growth and robust core profitability.
Which Stock to Buy?
Anuj Gupta, Director at Ya Wealth Research & Advisory, recommends investing in both stocks, given their strong Q1 performance.
'Both banks are moving at a similar pace. Investors can consider splitting their allocation equally between the two," he said.
Analyst Ratings And Target Price
HDFC Bank
Antique Stock Broking has a 'Buy' rating on HDFC Bank with a target price of Rs 2,270. The brokerage considers HDFC Bank its top pick among large private banks, citing tailwinds such as better deposit traction, reduction in RIDF investments, and operating leverage gains from network expansion.
Antique has also reiterated a 'Buy' rating on ICICI Bank, raising the target price to Rs 1,680 from Rs 1,640. The firm expects return on assets (RoA) of 2.3–2.4% and return on equity (RoE) of 16–17% over FY27–28. While loan growth has moderated in line with sector trends, recovery is expected in the second half of FY26.
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