HDFC: The decline in HDFC’s gross profit ratio suggests it may be facing some challenges,
either in terms of increasing costs, lower revenue, or both. The trend toward improvement in
2023-24 offers hope, but the overall profitability is lower than ICICI’s.
ICICI: While ICICI’s ratio has declined in the past few years, it is still performing significantly
better than HDFC. The sharp peak in 2020-21 suggests that it had a particularly strong year,
and despite the decline since, it continues to outperform HDFC.
HDFC: The liquidity situation at HDFC is worrying, especially with the sharp drop to 0.09 in
2023-24. It suggests a potential cash flow issue or operational difficulties that might affect its
ability to meet short-term financial obligations. The other years, though showing
improvement over 2023-24, still reveal significant liquidity risk.
ICICI: ICICI’s liquidity was strong until 2023-24, with ratios well above 1 in all years prior to
2023-24. However, the sudden drop to 0 in 2023-24 warrants a closer look, as it indicates
either a major financial issue or a potential error in the reporting.
ICICI has shown a remarkable recovery from its low point in 2019-20 and reached its peak
Net Profit Margin in 2022-23 (29.2%). Despite a small drop in 2023-24, ICICI's profitability
remains strong.
HDFC, while maintaining solid profitability, showed its best performance in 2021-22 and has
faced a decline in profitability in the past two years.
The Net Profit Margin data suggests that ICICI has been outperforming HDFC in recent years, with a
better ability to retain profit from its revenues.
ICICI has experienced a remarkable increase in ROE, recovering from its low point in 2019-20
and reaching its highest level in 2023-24. This indicates strong performance and profitability
improvements, particularly over the past two years.
HDFC has demonstrated consistent profitability with stable returns on equity, although it
has not seen the same level of improvement as ICICI. The drop in 2023-24 could indicate
some challenges or reduced efficiency in utilizing equity to generate returns.
ICICI has experienced a remarkable improvement in ROA, especially from 2019-20 to 2023-
24. The company’s ability to generate profit from assets has become increasingly efficient
over the period.
HDFC has maintained a strong but stable ROA, with little fluctuation, indicating consistent
asset utilization.
ICICI's significant recovery in ROA suggests that it has been optimizing its asset
management, while HDFC's consistent performance shows that the company is managing its
assets well but without the same level of improvement seen in ICICI. HDFC has exhibited
excellent asset quality with a very low Net NPA to Net Advances Ratio, maintaining zero
NPAs in 2020-21 and 2021-22, and slightly increasing to 0.33 in 2023-24.
ICICI, while starting with a higher NPA ratio in 2019-20 and 2020-21 (2%), has shown
improvement over time, reducing its Net NPA ratio to 0.45% in 2023-24.
ICICI’s improvement suggests better management of credit risk over the years, but it still lags behind
HDFC in terms of asset quality. However, HDFC’s performance is very strong in this regard, indicating
highly effective credit risk management.
