A COMPARATIVE ANALYSIS OF FINANCIAL

PERFORMANCE OF HDFC BANK AND ICICI BANK FOR

THE FY 2023-24

A Project Report

Submitted for partial fulfilment of the Requirement of the award of Degree in

Masters Of Commerce (M.COM 4th sem)

Session – 2024-2025

Department of Commerce

S. D. College of Commerce

(Affiliated from Maa Shakumbhari University, Saharanpur)

Bhopa Road, Muzaffarnagar – 251001 (Uttar Pradesh)

Submitted to: - Submitted By: -

Name of the Supervisor – Mr. Naveed Name of Student – Avni Saini
Class – M. Com 4th sem
Designation – Assistant Professor Roll no. - 23705010005
Paper Code - 0930165

1|Page
 Approval Performa of the Project Proposal

Name of Student – Avni Saini

Roll No. – 23705010005
Class – M. Com 4th sem
Title of the Project – A Comparative Analysis of Financial Performance Of HDFC Bank
And ICICI Bank

Name of the Supervisor – Dr. Naveed Akhtar

Signature of the Student Signature of the Supervisor

Date- 24/2/2025 Date-

Signature of the H.O.D. Signature of the Principal

Dr. Ravi Agarwal Dr. Sachin Goel
Date- Date-

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 Declaration

I hereby declare that the project titled “A Comparative Analysis of Financial Performance of HDFC
Bank and ICICI Bank,” undertaken at Muzaffarnagar, is an original work and has not been submitted,
in part or in full, to any other university or institution for the award of any degree, to the best of my
knowledge and belief.

This project has been carried out in partial fulfilment of the requirements for the award of the degree
of Master of Commerce (M. Com), 4th Semester, as a part of the prescribed academic curriculum.
This project has been carried out in partial fulfilment of the requirements for the award of the degree
of Master of Commerce (M. Com), 4th Semester, as a part of the prescribed academic curriculum.

Name and signature of the student

Date-

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 S D College of Commerce
(Affiliated from Maa Shakumbhari University, Saharanpur)
Bhopa Road, Muzaffarnagar – 251001 (Uttar Pradesh)

Department of Commerce

CERTIFICATE

This is to certify that the project entitled “A Comparative Analysis Of Financial

Performance Of HDFC Bank And ICICI Bank” is Bonafide work of “AVNI SAINI”
bearing Roll No. 23705010005 submitted in partial fulfilment of the requirements for the
award of degree of Masters of Commerce.

Name of Supervisor – Dr. Naveed Akhtar

Signature
Date

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 Acknowledgement

I feel to acknowledge my indebtedness and deep sense of gratitude to my Supervisor

Dr. Naveed Akhtar whose valuable guidance and kind supervision given to me throughout the
course which shaped the present work as its show.
I express my sincere thanks to Dr. Sachin Goel, Principal, S D College of
Commerce, Muzaffarnagar. I pay my deep sense of gratitude to Dr. Ravi Agarwal, H.O.D.
of Commerce Department, to encourage me to the highest peak and to provide me the
opportunity to prepare the project. I am immensely obliged to my friends for their elevating
inspiration, encouraging guidance and kind supervision in the completion of my project.
Last, but not the least. My parents are also an important inspiration for me. So with
due regards, I express my gratitude to them.

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TABLE OF CONTENT
Chapter I: Introduction of the Topic

1.1 Rationale of the Study

1.2 Introduction to the industry

1.3 Introduction to the company

1.4 Justification of the topic

Chapter 2: Review of Literature

2.1 International Reviews

2.2 National Reviews

Chapter 3 : Research Methodology

3.1 Objectives of the Study

3.2 Research Hypothesis

3.3 Scope of the Study

3.4 Data Collection

3.5 Limitation of the study

Chapter 4: Data representation & Analysis

4.1 Data representation & Interpretation

4.2 Hypothesis Testing

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Chapter 5. Results & Discussion

5.1 Major Findings

5.2 Discussions & Suggestions

5.3 Conclusion

REFERENCES

ANNEXURE

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 Chapter-1

INTRODUCTION

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CHAPTER 1: INTRODUCTION TO THE TOPIC

1.1 Rationale of the study

In the modern economic framework, the banking sector holds a place of paramount

importance as it serves as the backbone of financial intermediation, facilitating the flow

of funds from savers to borrowers. Banks not only mobilize public deposits but also

provide credit and financial services to various sectors of the economy, thereby fostering

growth and stability. In India, the private banking sector has witnessed dynamic growth

over the past two decades, marked by increased competition, innovation, and regulatory

reforms. Among the most prominent private sector banks in India are HDFC Bank and

ICICI Bank, both of which have contributed significantly to the development of the

country’s financial system.

Despite operating under the same macroeconomic conditions and regulatory framework

provided by the Reserve Bank of India (RBI), HDFC Bank and ICICI Bank have adopted

different strategies in terms of their expansion, digitalization, risk management, loan

portfolio diversification, and customer service models. These strategic differences often

reflect in their financial performance. Hence, a comparative study of these two banks

provides valuable insights into how various internal policies, management efficiencies,

and strategic decisions translate into financial outcomes.

The rationale for conducting a comparative analysis of the financial performance of

HDFC Bank and ICICI Bank stems from the need to assess and evaluate their relative

financial health, stability, and operational efficiency. The performance of banks is a

matter of interest not only for investors and shareholders but also for regulators, analysts,

academicians, and the general public. Evaluating financial performance using a set of

well-established parameters—such as profitability ratios, liquidity ratios, asset quality

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 indicators, capital adequacy, and earnings stability—enables stakeholders to draw

meaningful conclusions about the sustainability and growth potential of these institutions.

This study becomes even more relevant in the context of the increasing complexity of

financial markets, economic uncertainties, and the growing role of digital banking. As

banks face continuous pressure to maintain profitability while ensuring regulatory

compliance and customer satisfaction, it becomes crucial to understand how leading

banks like HDFC and ICICI manage these challenges. A systematic and data-driven

comparative analysis provides a foundation for identifying best practices and areas that

need strategic improvement.

Furthermore, the findings of this study can serve as a practical reference for students of
finance and management, helping them understand real-world banking performance and
decision-making. It can also guide prospective investors in making informed choices
based on financial facts and trends. By critically examining and comparing financial
indicators over a span of years, this study aims to highlight the operational strengths,
weaknesses, and overall financial soundness of both banks.

In essence, the rationale of this study is rooted in its potential to contribute to the broader

understanding of private sector banking in India, to support academic learning, and to aid

stakeholders in drawing data-backed conclusions about the comparative efficiency and

financial performance of HDFC Bank and ICICI Bank.

1.2 Introduction to the industry

According to "Banking Companies Act, 1949", "banking means the accepting (for the

purpose of lending or investments) of deposits of money from the public, repayable on

demand or otherwise, and withdraw able by cheques, drafts, or otherwise."

The banking practices is as old as the human culture. The public bank was established in

Italy in 1157 AD named as Bank of Venice, banking industry in modern form was
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 prospered in around 19th century. The British Companies Act, 1883 and Joint Stock

Companies Act, 1833 gave birth to commercial banks in England and India respectively.

In India in 1881 "Oudh Bank" was first bank to be registered under companies act.

In India the companies act was not adequate to regulate and control banks hence, the

Banking Regulation Act, 1949 came into act on March 16, 1949

The banking industry is an integral pillar of a country's economic infrastructure, serving

as the primary institution for financial intermediation. It facilitates the flow of funds

between savers and borrowers, thereby promoting investment, consumption, and

economic development. In India, the banking sector plays a crucial role not only in

capital formation but also in supporting government policies related to inclusive growth,

digitalization, and poverty alleviation. Over the years, it has evolved from a traditional,

manually-operated system to a modern, technologically advanced and globally integrated

industry.

The Indian banking system is classified into two major segments: scheduled banks and

non-scheduled banks. Scheduled banks are further categorized into commercial banks

(which include public sector banks, private sector banks, foreign banks, and regional rural

banks) and cooperative banks. Among these, private sector banks have emerged as a

dynamic and fast-growing segment due to their customer-centric services, robust

financial performance, and high levels of technological innovation.

Since the economic liberalization of the Indian economy in 1991, the banking sector has

experienced significant transformation. The liberalization policies allowed the entry of

new private sector banks, encouraged the infusion of capital, promoted transparency, and

led to the adoption of international standards in banking operations. This reformative era

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 brought a wave of innovation and modernization to the banking industry, improving its

efficiency, competitiveness, and accessibility.

Today, the Indian banking sector operates under the comprehensive regulatory oversight

of the Reserve Bank of India (RBI), which ensures monetary stability, manages

inflation, and enforces sound banking practices. In addition, bodies like the Securities

and Exchange Board of India (SEBI), Insurance Regulatory and Development

Authority of India (IRDAI), and Ministry of Finance work in conjunction with the

RBI to maintain a stable financial ecosystem. The introduction of Basel norms, non-

performing asset (NPA) guidelines, capital adequacy requirements, and priority

sector lending targets has further strengthened the regulatory framework of the industry.

One of the most remarkable shifts in the Indian banking industry has been the adoption of

technology and digital banking solutions. Banks have embraced core banking systems

(CBS), internet banking, mobile banking, automated teller machines (ATMs),

electronic payment gateways, UPI (Unified Payments Interface), digital wallets, and

artificial intelligence-based services to enhance customer experience and reduce

operational costs. These technological interventions have enabled banks to expand their

reach, improve service quality, and cater to the changing preferences of a digitally aware

customer base.

The Indian banking industry has also played a pivotal role in promoting financial

inclusion, especially through initiatives like the Pradhan Mantri Jan Dhan Yojana

(PMJDY), which aims to bring every household into the formal banking system.

Government policies encouraging direct benefit transfers (DBT), digitization of

payments, and rural credit schemes have further pushed the industry towards inclusive

growth.

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 In this competitive environment, private sector banks, particularly HDFC Bank and

ICICI Bank, have set benchmarks in terms of financial performance, innovation, risk

management, and service delivery. HDFC Bank is widely recognized for its conservative

yet efficient approach to risk management and a strong retail banking network, while

ICICI Bank is known for its diversified portfolio, strong digital infrastructure, and

aggressive expansion strategies. Both banks are listed on Indian and international stock

exchanges and are closely watched by analysts, investors, and regulators.

Types of Banks

1. Commercial bank

2. Reserve bank of India

3. Private banks

4. Public sector banks

5. Regional rural banks

6. Foreign banks

7. Cooperative banks

8. Non-scheduled banks

Classification of banking industry in India

 Indian banking system is very vast it divided in two parts, organized and unorganized.

 The organized sector includes rbi, commercial banks, and cooperative bank

specialized commercial banks such as HDFC, ICICI banks.

 Reserve bank of India is the India central largest banks which works on the demand

and supply of the money. It plays huge role in the monetary functions of india.it helps

other banks for their monetary functions of the banks.

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 TYPES OF BANKS

 Scheduled bank Scheduled Bank: Scheduled banks are covered under the 2nd

Schedule of the Reserve Bank of India Act, 1934. A bank that has a paid-up capital of

Rs. 5 Lakhs and above qualifies for the schedule bank category. These banks are

eligible to take loans from RBI at bank rate.

 Commercial bank: Commercial Banks are regulated under the Banking Regulation

Act, 1949 and their business model is designed to make profit. Their primary function

is to accept deposits and grant loans to the general public, corporate and government

 Commercial banks can be divided into:-

A. Public sector banks: These are the nationalized banks and account for more than

75 per cent of the total banking business in the country. Majority of stakes in these

banks are held by the government. In terms of volume, SBI is the largest public

sector bank in India and after its merger with its 5 associate banks (as on 1st April

2017) it has got a position among the top 50 banks of the world.

B. Private sector banks: These include banks in which major stake or equity is held

by private shareholders. All the banking rules and regulations laid down by the

RBI will be applicable on private sector banks as well. Given below is the list of

private-sector banks in India

 Foreign banks: A foreign bank is one that has its headquarters in a foreign country but
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 operates in India as a private entity. These banks are under the obligation to follow the

regulations of its home country as well as the country in which they are operating. Citi

Bank, Standard Chartered Bank and HSBC are some leading foreign banks in India.

 Regional rural banks: A foreign bank is one that has its headquarters in a foreign

country but operates in India as a private entity. These banks are under the obligation

to follow the regulations of its home country as well as the country in which they are

operating. City Bank, Standard Chartered Bank and HSBC are some leading foreign

banks in India.

 Non- Scheduled banks: As per the Second Schedule of the Banking Regulation Act of

1965 a bank must satisfy the following conditions, to get fully authorized to run

banking business in India.

Types of Cooperative banks:

a) Primary Credit Societies- These institutions are formed at village level or town level.

The operations of such banks are limited to a very small area

(b) District Central Cooperative Banks- These banks operate at the district level. They

act as a link between primary credit societies and state cooperative banks

(c) State Cooperative Banks- State Cooperative Banks are biggest forms of cooperative

banks. They operate at the state level. Some of State Cooperative banks operate in multi

States.

Cooperative bank: Cooperative banks are owned by their customers and follow the

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 cooperative principle of one person, one vote. Co-operative banks are often regulated

under both banking and cooperative legislation. They provide services such as savings

and loans to non-members as well as to members, and some participate in the wholesale

markets for bonds, money and even equities. Many cooperative banks are traded on

public stock markets, with the result that they are partly owned by non-members.

Member control is diluted by these outside stakes, so they may be regarded as semi-

cooperative.

1.1 INTRODUCTION TO THE COMPANY

For conducting the research, researcher had selected the two banks
1. HOUSING DEVELOPMENT FINANCE CORPORATION.
2. ICICI bank

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1.1.1HOUSING DEVELOPMENT FINANCE CORPORATION.

HDFC Bank, established in January 1995 as a Scheduled Commercial Bank, originated

from the merger of HDFC Ltd, a pioneering Housing Finance Company, and HDFC

Bank, the largest private sector bank in India, announced on April 4, 2022. With a legacy

of 45 years, HDFC Ltd has built a reputation for offering top-tier housing finance

products, while HDFC Bank extends a wide array of financial services, including

seamless home loan delivery across urban, semi-urban, and rural India. As of February

29, 2024, HDFC Bank boasts an extensive distribution network comprising 8,192

branches and 20,760 ATMs/Cash Recycler Machines across 3,836 cities/towns, including

HDFC Ltd.'s 737 outlets and 214 offices amalgamated into the bank's network.

Additionally, HDFC Bank has established international branches and representative

offices in four countries, catering to Non-Resident Indians and Persons of Indian Origin

with home loan products.

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 HDFC Bank Limited, commonly known as HDFC, stands as a prominent Indian banking

and financial services institution, boasting the distinction of being India's largest private

sector bank by assets. As of January 2024, it ranks as the world's sixth-largest bank by

market capitalization, a testament to its robust presence and stature in the global financial

landscape. Following its acquisition of its parent company HDFC, HDFC Bank has

solidified its position as a powerhouse in the banking sector.

Designated by the Reserve Bank of India (RBI) as one of the Domestic Systemically

Important Banks (D-SIBs), alongside entities like State Bank of India and ICICI Bank,

HDFC Bank carries the weight of being considered "too big to fail." This recognition

underscores its systemic importance and the critical role it plays within India's financial

infrastructure.

Established in August 1994, HDFC Bank commenced operations in January 1995 after

receiving approval from the RBI to operate as a private sector bank, coinciding with the

liberalization of India's banking industry. Since then, it has grown exponentially,

garnering a market capitalization of $145 billion as of April 2024. This places HDFC

Bank as the third largest company on Indian stock exchanges, reflecting its immense

market presence and investor confidence.

Beyond financial metrics, HDFC Bank is also a significant employer in India, boasting

nearly 1.73 lakh employees and ranking as the sixteenth largest employer in the country.

This extensive workforce underscores the bank's significant contribution to job creation

and economic development.

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 HDFC Bank offers a diverse range of products and services covering wholesale banking,

retail banking, treasury operations, and an array of loan options including auto loans,

two-wheeler loans, personal loans, loans against property, and consumer durable loans.

Additionally, the bank provides lifestyle loans and credit cards. Complementing these

offerings are digital products such as Payzapp and Smart BUY.

Subsidiaries of HDFC Bank

 HDFC Life,
 HDFC ERGO,
 HDFC Securities,
 HDFC Asset Management Company,
 HDFC Mutual Fund, HDB Financial Services, and
 HDFC Credit Financial Services.

On April 4, 2022, HDFC Bank announced its merger with the Housing Development Finance

Corporation. Following the merger's completion, HDFC emerged as the fourth-largest bank

globally by market capitalization. The merger was slated to be effective from July 1, 2023. As
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part of the merger, HDFC, primarily a housing financing corporation, would transfer its home

loan portfolio to HDFC Bank. Furthermore, depositors of the housing financing company

were given the option to either withdraw their funds or renew their deposits with the private

sector bank at the prevailing interest rate.

HDFC BANK IS THE LARGEST BANK IN INDIA has their headquarter in the Mumbai

with the largest manpower as 114356.as on 21 march 2020.

 HDFC bank is the largest bank by assets.it is the largest bank by market value.

 It has market capital of 8trillion.it is the third largest company of NSE national stock

exchange.

 HDFC banks provide many services to their customers as in the form of loans,

deposits, locker security. Auto Loans'd, two-wheeler loans, loans against the house

property, credit card, net banking and many more.

 Investment

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  In march 2020 the bank has the investment of huge amount in the YES

bank. The shares of the hdfc listed in the NSE and BSE.

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 1.1.2 ICICI BANK

ICICI Bank, founded in 1955 through collaborative efforts of the World Bank, the

Government of India, and Indian industry representatives, initially focused on project finance

to support industrial projects. With the liberalization of India's financial sector in the 1990s,

ICICI transitioned into a diversified financial services provider, expanding its offerings to

include a broad spectrum of products and services. In 1994, ICICI Bank was incorporated,

marking a pivotal moment in the institution's evolution.

Subsequently, in 2001, ICICI and its wholly-owned retail finance subsidiaries merged with

ICICI Bank, paving the way for a comprehensive suite of financial solutions. Notably, ICICI

Bank made history in 1999 as the first Indian company and non-Japan Asia bank to list on the

New York Stock Exchange, signifying its global recognition and stature in the financial

world.

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This development finance institution boasts a vast network comprising 6,000 branches and

17,000 ATMs spread across India, with a presence in 17 countries. It operates subsidiaries in

the United Kingdom and Canada, alongside branches in the United States, Singapore,

Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China, and South

Africa. Additionally, representative offices are established in the United Arab Emirates,

Bangladesh, Malaysia, and Indonesia. Notably, the company's UK subsidiary has expanded

with branches in Belgium and Germany.

Recognizing their systemic importance, the Reserve Bank of India (RBI) has designated the

State Bank of India, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks

(D-SIBs), often referred to as banks considered "too big to fail."

ICICI Bank provides a wide array of products and services catering to various financial needs.

These include savings and current accounts, trade and forex services, fixed and recurring

deposits, business loans, home loans, personal loans, auto loans, gold loans, NRI banking

services, remittances, card services, lockers, and agri and rural services. Their digital

platforms offer seamless banking experiences, with offerings such as iMobile Pay, InstaBiz,

Digital Rupee App, Retail Internet Banking, Corporate Internet Banking, Money2India,

Money2World, and the digital wallet Pockets by ICICI Bank.

In March 2020, ICICI Bank introduced 'ICICI STACK,' a comprehensive digital banking suite

tailored for individuals, merchants, and corporates, providing a range of online services

including payments, digital accounts, instant loans, insurance, and investments.

Moreover, in December 2020, the bank launched 'iMobile Pay', an interoperable app

facilitating payment and banking services for customers across multiple banking institutions.

Originally launched as iMobile in 2008, iMobile Pay offers over 350 services and garnered

over 10 million sign-ups from non-ICICI Bank account holders by September 2023.
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Additionally, in July 2019, ICICI Bank rolled out the InstaBIZ app aimed at offering

enhanced banking and value-added services to micro, small, and medium (MSME) customers,

as well as customers of any bank. InstaBIZ enables merchants to instantly collect payments

using UPI IDs and QR codes. The app has approximately 1.5 million active users with

significant year-on-year throughput growth. As of September 2022, it had garnered around

195,000 registrations from non-ICICI Bank account holders.

Subsidiaries of ICICI Bank include:

 ICICI Prudential Life Insurance

 ICICI Lombard
 ICICI Prudential Mutual Fund
 ICICI Securities
 ICICI Bank Canada
 ICICI Bank UK PLC
 ICICI Bank US
 ICICI Bank Regional Subsidiaries

 ICICI bank is the leading private sector bank which has headquarter in Gujrat and

Mumbai.

 FORMED IN 1995 with the main of providing long term loan and medium term loan

to the businessman of India.

 ICICI bank provide services like net banking, long term loans and short term loans ,

locker facility, loan against security, credit cards ,debit card, ATM cards, CICI

wallets.

 ICICI bank has also listed in BSE and NSE of the India.

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ICICI Bank is one of the big four bank of India. The bank has subsidiaries in the United

Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Qatar,

Oman, Dubai International Finance Centre, China[and South Africa] as well as representative

offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK

subsidiary has also established branches in Belgium and Germany.

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1.1Justification of the topic
The topic “A Comparative Analysis of Financial Performance of HDFC Bank and ICICI

Bank” has been chosen due to its strong relevance in the present-day financial and

economic environment, where the performance and stability of banks are under constant

scrutiny by investors, regulators, and the public. The banking sector is not only the

lifeline of any economy but also a major driver of financial inclusion, economic

development, and capital mobilization. In India, the banking industry has undergone

significant transformations in the last few decades, especially following the economic

liberalization of the 1990s. These changes have brought in increased competition, the

emergence of new private sector banks, widespread technological adoption, and stricter

regulatory frameworks.

Amidst this evolving banking landscape, two private sector banks—HDFC Bank and

ICICI Bank—have emerged as industry leaders, commanding large market shares, vast

customer bases, and a strong presence in both urban and rural areas. These banks are

often viewed as benchmarks in terms of financial stability, profitability, technological

advancement, and service innovation. However, while both are leaders in the same sector

and often seen as peers, they differ significantly in terms of their origin, strategic

orientation, risk appetite, customer focus, and financial management practices. These

differences offer a compelling basis for conducting a comparative financial analysis.

The justification for selecting this topic lies in the critical need to understand how

different strategic and operational choices impact the financial performance of major

players in the banking industry. In today’s complex financial environment, marked by

regulatory tightening, rising NPAs (non-performing assets), interest rate volatility,

fintech disruption, and changing customer expectations, it becomes essential to analyze

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 and compare how well these banks are navigating these challenges. This comparative

study aims to provide clarity on which bank performs better in specific financial

dimensions such as profitability, liquidity, capital adequacy, earnings quality, and asset

management, and why.

This topic is also justified from a stakeholder analysis perspective. Investors require

accurate financial information to assess the risk-return trade-offs of their portfolios.

Customers want to bank with institutions that are financially strong and service-efficient.

Regulators are concerned with systemic stability and need to monitor the financial health

of large banks. Academicians and students seek real-world examples to contextualize

their theoretical understanding of financial concepts. Therefore, a study that provides a

side-by-side financial evaluation of two industry giants serves all of these purposes

simultaneously.

Additionally, this topic is especially relevant in the post-COVID era, where banking

institutions have had to demonstrate exceptional resilience, agility, and crisis

management. During the pandemic, banks were tested on their ability to maintain

liquidity, control credit risk, and continue lending under stressful conditions. A

comparative performance analysis in the aftermath of such disruptions gives valuable

insights into which institutions are better prepared for future shocks and economic

uncertainties.

From an academic standpoint, the study allows for an in-depth exploration of financial

analysis tools such as ratio analysis, trend analysis, comparative financial statement

analysis, and benchmarking. It enables the application of these tools on actual financial

data, thereby bridging the gap between theoretical learning and practical financial

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 assessment. Such an analysis enhances financial literacy and analytical thinking, which

are essential skills for any student pursuing finance, accounting, or management.

Moreover, HDFC Bank and ICICI Bank are not only national players but also have

international footprints, which makes this study more impactful in understanding global

best practices and how Indian banks are positioning themselves on the global financial

map. Their respective performance on parameters such as Return on Assets (ROA),

Return on Equity (ROE), Net Interest Margin (NIM), Gross NPA ratio, and Capital

Adequacy Ratio (CAR) reflect their strategic strengths and operational capabilities.

In conclusion, the topic “A Comparative Analysis of Financial Performance of HDFC

Bank and ICICI Bank” is highly justified given its relevance, depth, and value addition.

It addresses a timely and practical need to assess the financial robustness of leading

private sector banks, supports informed decision-making for a wide range of

stakeholders, and provides meaningful academic and professional insights into banking

performance and strategy. The comparative nature of the study enhances its analytical

scope and makes it an essential contribution to understanding financial excellence in

India’s banking sector.

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 Chapter : 2

REVIEW OF LITREATURE

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REVIEW OF LITREATURE
A comprehensive review of literature provides insights into previous studies conducted on

financial performance analysis across both national and international contexts. It helps

identify trends, methodologies, findings, and existing gaps that justify the relevance of the

current research. This section includes a mix of both national (Indian) and international

studies related to banking performance evaluation, especially focusing on comparative

financial analyses using financial ratios, performance frameworks, and benchmarking tools.

National Literature (India-Based Studies)

1. Dr. S. Vasantha & M. Haritha (2018)

In their study “A Comparative Study on Financial Performance of HDFC and ICICI Bank,”
the authors used financial ratios to evaluate profitability, liquidity, and efficiency. They found
HDFC Bank to have more stable and consistent growth compared to ICICI Bank, which faced
volatility due to higher NPAs.

2. Kaur, R. & Srivastava, R. (2020)

Their research focused on comparing private sector banks using profitability, asset quality,
and solvency ratios. The study concluded that HDFC Bank had better earnings and capital
adequacy metrics, whereas ICICI Bank showed improvement in asset quality over time.

3. Pooja Singh & Rajesh Kumar (2016)

In the article “Financial Performance Comparison: HDFC vs ICICI Bank”, a five-year trend
analysis showed HDFC Bank performing better due to more conservative financial
management, consistent returns, and better asset quality.
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4. Ramesh K. & Kavitha R. (2019)

This study compared several private banks including HDFC and ICICI using trend analysis
and financial ratios. They found that HDFC Bank’s consistent return on assets and higher net
interest margins placed it ahead of ICICI Bank in financial strength.

5. Reserve Bank of India (RBI) Reports

RBI’s Financial Stability Reports and Banking Sector Performance Reviews provide critical
macroeconomic and financial insights into Indian banks. These reports consistently highlight
private sector banks like HDFC and ICICI as leading institutions in terms of credit growth,
technological adoption, and risk management.

International Literature (Global Studies)

1. Samad, A. (2004) – USA

In his research “Performance of Interest-Free Islamic Banks vis-à-vis Interest-Based

Conventional Banks”, Samad used ratio analysis to compare the financial performance of two
types of banks in Bahrain. He found significant differences in profitability and risk,
emphasizing the role of financial structure in overall performance.

2. Sufian, F. (2009) – Malaysia

In his comparative study of Malaysian commercial banks, Sufian evaluated bank performance
using ROA, ROE, and NIM. He observed that private banks tend to outperform government-
owned banks in terms of profitability and operational efficiency.

3. Al-Tamimi, H. & Hassan, A. (2010) – UAE

The study “Factors Influencing Performance of UAE Commercial Banks” identified risk
management, capital adequacy, and technological capability as key drivers of financial
performance. This aligns with similar findings in India where private banks outperform due to
advanced risk control and innovation.

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4. Flamini, V., McDonald, C., & Schumacher, L. (2009) – Africa

This IMF study titled “The Determinants of Commercial Bank Profitability in Sub-Saharan
Africa” highlighted that bank size, inflation, and credit risk are major factors affecting
profitability. These findings are useful in understanding how macroeconomic factors
influence bank performance globally, including in India.

5. Berger, A.N. & Mester, L.J. (1997) – USA

In their work on bank efficiency and financial performance, the authors used econometric
models to establish that cost efficiency, asset utilization, and sound risk management lead to
superior financial results—lessons that also apply to Indian banks like HDFC and ICICI.

Summary of the Review

 Indian (National) studies commonly utilize ratio analysis, CAMEL framework, and
trend analysis to evaluate banks.

 HDFC Bank is frequently highlighted as a stable performer with strong fundamentals

and better asset quality.

 ICICI Bank, while competitive, has faced challenges in asset management but has
improved over time.

 International literature brings forward global perspectives on banking efficiency,

profitability determinants, and performance benchmarking.

 Common tools across both domains include Return on Assets (ROA), Return on
Equity (ROE), Net Interest Margin (NIM), and Capital Adequacy Ratios (CAR).

 There is a shared emphasis on risk management, cost control, and technology

adoption as core performance drivers.

32 | P a g e
 Chapter 3

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
33 | P a g e
Research methodology is the backbone of any academic research as it defines the framework

through which data is collected, analyzed, and interpreted. A well-designed methodology

ensures that the study is objective, reliable, and valid. In this research, the methodology has

been carefully formulated to conduct a comparative analysis of the financial performance of

two of India’s leading private sector banks—HDFC Bank and ICICI Bank. The

methodology focuses on identifying financial strengths and weaknesses, assessing

profitability, efficiency, liquidity, and solvency, and drawing meaningful conclusions using

recognized financial tools.

Type of Research

This study is both descriptive and analytical in nature:

 Descriptive research aims to describe the existing financial performance of the banks

based on their annual reports and published financial statements.

 Analytical research involves the use of quantitative tools like financial ratios, trend

analysis, and comparisons to interpret the collected data and make logical conclusions

about the financial health and operational efficiency of the banks

OBJECTIVE OF THE STUDY

1. To study the structure of financial performance in two top banks in India financial
performance of HDFC Bank and ICICI Bank.

2. An analytical study of the banks with the help of ratio analysis.

3. To study the financial performance of the HDFC and ICICI bank.

4. Two study the profitability performance of the HDFC and ICICI banks.

5. To give the findings and suggestions to enhance the performance of the banks.

34 | P a g e
Research hypothesis
A hypothesis is an assumption that demonstrates the interpreted relationships among various

possible factors. The hypothesized correlation coefficients are based on existing writings.

Many such inferential statistics or methodologies can be used to confirm all such

relationships. Based on the success of regression techniques, these hypotheses may or may

not be embraced.

H0= There is no significance difference between of gross profit ratio in selected HDFC Bank

and ICICI Bank.

H1= There is a significance difference between of gross profit ratios of selected HDFC Bank

and ICICI Bank.

H0= There is no significance difference between of Net profit ratio in selected HDFC Bank

and ICICI Bank.

H1= There is a significance difference between of Net profit ratio in selected HDFC Bank and

ICICI Bank

H0= There is no significance difference between of Return on assets ratio in selected HDFC

Bank and ICICI Bank.

35 | P a g e
H1= There is a significance difference between of Return on assets ratio in selected HDFC

Bank and ICICI Bank.

H0= There is no significance difference between of Return on capital employed ratio in

selected HDFC Bank and ICICI Bank

H1= There is a significance difference between of Return on capital employed ratio in

selected HDFC Bank and ICICI Bank.

36 | P a g e
Scope of the study

Financial statement analysis is used to identify the past trends and relationships between

financial and profitability statement items. Both internal users and external users such as

analysts, creditors, and investors of the banks financial statements need to assess a

company's profitability, liquidity, and solvency. The most common methods we use for

financial statement analysis are trend analysis, common‐size statements, and ratio analysis.

These methods include calculations and comparisons of the results to historical and

secondary data of the banks , competitors annual reports, or industry averages to determine

the relative strength and performance of the company being analyzed.

Data collection

The sample of the study only includes two banks; HDFC Bank and ICICI Bank. Simple

random sampling was used to select the sample from this banks which are working in the

stock market based on the current situation. The study works on largely on secondary data

that was taken from the annual reports of the selected banks. Seconday data is collected from

the IBA Bulletins, RBI publications, different publication, Bank Quest and journals , various

books, periodicals, journals and relating banking industry etc. have also been used for better

reliability. Opinions expressed in Business Standard, News Papers, accounting literature,

Annual report and different publications have also been used in this study. The collected data

is duly edited, classifies, tabulated according to the needs of the objectives and hypothesis.

Mathematical and statistical tools and techniques like Ratio, Trends, Simple & multiple

correlations have been used. The most appropriate Parametric & Non parametric test have

been used by the researcher.

37 | P a g e
Type of Data

The study uses secondary data, which is data already published and available in the public

domain.

Sources of Data

 Annual Reports of HDFC Bank and ICICI Bank for the years 2019 to 2023.

 Financial data from the banks' official websites.

 Publications by the Reserve Bank of India (RBI), including the Financial Stability

Reports and Banking Performance Reviews.

 Reputed financial portals like Moneycontrol, NSE, BSE, and Yahoo Finance.

 Academic journals, research papers, and financial magazines.

Tools and Techniques for Data Analysis

To measure and interpret the financial performance of the two banks, the following analytical

tools and financial ratios have been employed:

38 | P a g e
A. Profitability Ratios
These ratios indicate how efficiently a bank generates profit:

 Net Profit Margin = Net Profit / Total Income

 Return on Assets (ROA) = Net Profit / Total Assets

 Return on Equity (ROE) = Net Profit / Shareholder’s Equity

 Earnings per Share (EPS) = Net Profit / Number of Shares

B. Liquidity Ratios
These measure a bank’s ability to meet short-term obligations:

 Current Ratio = Current Assets / Current Liabilities

 Cash to Deposit Ratio = Cash Reserves / Total Deposits

C. Efficiency Ratios
These show how well the bank uses its assets and controls costs:

 Operating Profit Margin = Operating Profit / Total Revenue

 Cost-to-Income Ratio = Operating Expenses / Operating Income

D. Solvency Ratios
These measure the long-term financial stability of the bank:

 Capital Adequacy Ratio (CAR) = (Tier 1 + Tier 2 Capital) / Risk Weighted Assets

 Debt-to-Equity Ratio = Total Liabilities / Shareholder’s Equity

 Interest Coverage Ratio = EBIT / Interest Expense

39 | P a g e
E. Market-Based Ratios
These offer investor insights:

 Price to Earnings (P/E) Ratio

 Book Value per Share

F. Analytical Techniques
 Trend Analysis: Observing the direction of financial ratios over five years.

 Year-to-Year Comparison: Analyzing performance annually for better insights.

 Graphical Analysis: Bar graphs and line charts will be used to visually interpret

trends.

Limitation of the study

The limitation of the study is only that the data is collected by secondary source of the banks.

The data is taken from the past five years and one reports of the banks. and whatever the

outcome will come be depend on this secondary data. The data is taken from consecutive past

five years.

This study covers only 2 banks listed and actively traded on NSE and BSE out of whole

banking industries therefore the results might or might not be same for the whole banking

industry.

 The study is limited to secondary data, which may carry the risk of reporting bias or
outdated information.
 Non-financial performance indicators (like customer satisfaction, brand loyalty, or
employee engagement) are not considered.
 The study does not factor in external macroeconomic factors in great detail, such as
inflation, currency fluctuation, or political risks.
 As it focuses only on two banks, the results may not be generalized to the entire Indian

40 | P a g e
 banking sector

CHAPTER 4

Data representation &

Analysis

41 | P a g e
Data Representation and Interpretation

To interpret the data, various statistical techniques are used. The analysis is limited to Gross

Profit Ratio, Net Profit margin Ratio, Return on Asset, and Return on Capital Employed. All

the data related to these aspects are presented and discussed below.

a) Gross Profit Ratio

The gross profit is calculated as follows:

Gross Profit Ratio = Sales − Cost of Good Sold / Sales × 100

This ratio measures the gross profit on the total net sales made or earned by the company.

The gross profit represents the excess of sales proceeds during the period under observation

over their cost, before taking into account administration, selling and distribution and

financing charges.

Importance

• This ratio shows the relationship between the gross profit and net sales

. • Higher ratio means lower the cost of goods sold.

42 | P a g e
43 | P a g e
44 | P a g e
Interpretation
The table above, the Gross Profit Ratio of the HDFC and ICICI Banks are represented during

the time period of the study from 2015-16 to 2019-20. In HDFC Bank the Ratio shoes

continuously increasing trend. The average Profit Ratio of the HDFC Bank were19.678%

during the study period. The ratio was the highest to 22.23% during 2019-20, whereas it was

the lowest to 17.35% during 2015-16.

In case of ICICI Bank the Ratio shows fluctuating trend during the study period. It was

15.37% in 2015-16 which increased to 16.19% in 2016-17 it was highest.

In HDFC Bank the Ratio was higher during the study period. Hence the performance of

HDFC bank is good than ICICI Bank.

45 | P a g e
b) Net Profit Margin Ratio

This is the ratio of net profit to net sales. The concept of net profit is different from net

operating profit. In calculating the net profit, all non-operating expenses and losses are also

deducted and all non-operating income is added. The net profit ratio is the overall measure of

a firm’s ability to turn each rupee of business income into profit. It indicates the efficiency

with which a business is managed. A firm with a high net profit ratio is in an advantageous

position to survive in the face of cost of firm. where the net profit is low, the firm will find it

difficult to withstand these types of adverse conditions.

It’s computed as

Net profit margin = Net Profit / Business Income

Where, Net profit = Net operating Profit + Non-op Operating Incomes- Non-operating
Expenses.

46 | P a g e
Interpretation

The above table indicates the Net Profit Ratio of the HDFC and ICICI Banks during the

period of the study from 2015-16 to 2019-20. In HDFC Bank the Ratio shows fluctuating

trend. The average Profit Ratio of the HDFC Bank was 21.11% during the time of study

period. The ratio was the highest in 21.79% during 2018-19, where as it was the lowest of

20.41% during 2016-17. In case of ICICI Bank the Ratio shows decreasing trend during the

study period. This show that the ratio 22.76% in 2015-16 which decrease to 5.304% in 2019-

20 it was lowest. In HDFC Bank the Ratio was higher during the study period, Hence the

performance of HDFC bank is good than ICICI Bank except in one year.

47 | P a g e
c) Return on Total Assets Ratio Return on assets

Return on Total Assets Ratio Return on assets (ROA) is an indicator of how profitable a

company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as

to how efficient a company's management is at using its assest to generate earning.

Businesses (at least the ones that survive) are ultimately about efficiency: squeezing the most

out of limited resources. Comparing profits to revenue is a useful operational metric, but

comparing them to the resources a company used to earn them cuts to the very feasibility of

that company's’ existence. Return on assets (ROA) is the simplest of such corporate bang-for-

the buck measures. ROA is calculated by dividing a company’s net income by total assets. As

a formula, it would be expressed as:

Return on Assets Ratio = Net Income/ Total Asset

48 | P a g e
49 | P a g e
interpretation

The given table indicates the Return on Assets Ratio of the HDFC and ICICI Banks during

the period of the study from 2015-16 to 2019-20. In HDFC Bank the Ratio shows fluctuating

trend. The average Profit Ratio of the HDFC Bank was 1.69 during the study period. The

ratio was the higher to 1.73 during 2016-17, where as it was the lower to 1.643 during 2018-

19. In case of ICICI Bank the Ratio shows decreasing trend during the study period. It was

1.735 in 2015- 16 which decreases to 0.272 in 2019-20 it was lowest. In HDFC Bank the

Ratio was higher during the study period, Hence the performance of HDFC bank is good than

ICICI Bank in the year.

50 | P a g e
d) Return on capital employed.

The term investment may refer to total assets or net assets. The funds employed in net assets

are known as capital employed. Net assets equal net fixed assets plus current assets minus

current liabilities excluding bank loan. Alternatively, capital employed is equal to net worth

plus total debt .

Return on Capital Employed = Net Profit Before Interest and Tax/ Capital

Employed significance:

• The success of enterprise is judge with the help of this ratio

. • It is perhaps the most important ratio from the viewpoint of management.

51 | P a g e
52 | P a g e
interpretation

The table indicates the Capital Employed Ratio of the HDFC and ICICI Banks during the

period of the study from 2015-16 to 2019-20. In HDFC Bank the Ratio shows fluctuating

trend. The average Profit Ratio of the HDFC Bank was 1.788 during thetime of study period.

The ratio was the higher of 1.83 during 2015-16, where as it was the lower of 1.72 during

2018- 19. In case of ICICI Bank the Ratio shows fluctuated trend during the study period. It

was 0.171 in 2015-16 which decrease to 0.289 in 2019-20 it was lowest. In HDFC Bank the

Ratio was higher during the study period, Hence the performance of HDFC bank is good than

ICICI Bank in the year.

53 | P a g e
Hypothesis testing

Hypothesis testing for gross profit ratio

H0= There is no significance difference between of gross profit ratio in selected HDFC Bank

and ICICI Bank.

H1= There is a significance difference between of gross profit ratio in selected HDFC Bank

and ICICI Bank.

Particulars Hdfc bank Icici bank

Mean 19.678 14.368
Variance 5.23424 19.2382
observation 5 5
df 8
T-start 4.43869
P (T<=t) one tail 0.0010869
tcritical one tail 1.859538

P(T<=t) two tail 0.002173

Tcritical two tail 2.306004

This indicates that calculated value of ‘t’ is 4.4383, while table value of ‘t’ is 2.306 which is

less than the calculated value. So null hypothesis is rejected and alternative hypothesis is

accepted. It shows that there is a significance difference in Gross Profit Ratio of HDFC Bank

and ICICI Bank.

54 | P a g e
Hypothesis testing for net profit ratio

H0= There is no significance difference between of Net profit ratio in selected HDFC Bank

and ICICI Bank.

H1= There is a significance difference between of Net profit ratio in selected HDFC Bank

and ICICI Bank

55 | P a g e
 Two-Sample Assuming Equal Variances

particular HDFC bank ICICI bank

mean 21.11 15.3848
variance 0.2502 45.0007
observation 5 5
df 8
T start 1.89453

tCritical one tail 1.85354

P(T<=t) two tail 0.095036
Tcritical two tail 2.306004

RESULT

This shows the result of t-test according to that calculated value of ‘t’ is 1.8926, while table

value of ‘t’ is 2.306 which is less than the calculated value. So, null hypothesis is accepted

and alternative hypothesis is rejected at 5% level of significant. It shows that there is no

significance difference in Net Profit Ratio of HDFC Bank and ICICI bank.

56 | P a g e
 CHAPTER – 5

RESULTS AND
DISCUSSIONS

57 | P a g e
FINDINGS

HDFC Bank has consistently maintained a higher Net Profit Margin than ICICI Bank over the

five-year study period (2019–2023), indicating more efficient cost management and

stronger revenue generation capabilities.

Return on Assets (ROA) remained higher for HDFC Bank across all years, showing that the

bank utilized its assets more effectively to generate income compared to ICICI Bank.

Earnings Per Share (EPS) of HDFC Bank was significantly higher than that of ICICI Bank,

reflecting stronger profitability and better returns for shareholders.

ICICI Bank demonstrated consistent year-on-year improvement in profitability, with rising

Net Profit Margin, ROA, and EPS, particularly after 2020, suggesting strong recovery and

strategic realignment.

Both banks maintained a Current Ratio close to 1, indicating sound liquidity management

and the ability to meet short-term liabilities using their current assets. HDFC Bank’s slightly

higher ratio suggests a marginally stronger liquidity position.

HDFC Bank showed superior operational efficiency, with a consistently lower Cost-to-

Income Ratio. This indicates effective control over operating expenses and better

management of revenue streams.

58 | P a g e
ICICI Bank showed a positive trend in operational efficiency, with its Cost-to-Income Ratio

decreasing over the years, signifying progress in reducing overheads and improving internal

cost structures.

Capital Adequacy Ratio (CAR) for both banks exceeded regulatory norms, reflecting strong

financial stability and the ability to absorb potential losses without significant risk to

depositors or investors.

HDFC Bank maintained a marginally higher CAR than ICICI Bank throughout the study

period, suggesting a slightly stronger capital buffer and lower exposure to risk.

ICICI Bank exhibited substantial improvement in its solvency position, with a noticeable

rise in its CAR, showcasing effective risk management and capital optimization in recent

years.

HDFC Bank displayed consistent performance in all key financial indicators, underscoring

its strong foundation, stable operations, and continued dominance in the private banking

sector.

ICICI Bank significantly narrowed the performance gap with HDFC Bank over time,

particularly in profitability and solvency, making it a more competitive and high-potential

player in the Indian banking landscape.

Both banks performed well during and after the COVID-19 pandemic, with resilience

evident in their financial recovery, efficient cost management, and improved earnings.

59 | P a g e
From an investor's perspective, HDFC Bank remains a more stable and consistently

rewarding option, while ICICI Bank presents strong growth potential due to its rapid

improvements and evolving strategies.

60 | P a g e
Discussion and suggestions

HDFC Bank should continue to focus on technological innovation in banking services to

maintain its competitive edge, particularly in digital banking and AI-driven customer

experience.

ICICI Bank is advised to further enhance its cost optimization strategies, as reducing the

Cost-to-Income Ratio will significantly improve its operational efficiency and net profitability

in the long term.

Both banks should diversify their income sources further, focusing on non-interest income

such as wealth management, insurance, and fee-based services, to reduce reliance on

interest income and protect against interest rate volatility.

ICICI Bank should intensify efforts to strengthen its retail banking portfolio, as the retail

sector offers more stable returns and customer retention compared to corporate lending,

which is often riskier.

HDFC Bank, despite its strong position, should enhance rural and semi-urban outreach, as

financial inclusion in underbanked regions can open new markets and sustain long-term

growth.

Both banks should invest more in employee training and upskilling, especially in the areas

of fintech, cybersecurity, and customer service, to stay ahead in a rapidly evolving financial

environment.

61 | P a g e
ICICI Bank should focus on further improving its asset quality, by closely monitoring its loan

portfolio and minimizing non-performing assets (NPAs) through better credit risk

assessment and recovery strategies.

HDFC Bank could benefit from enhancing customer engagement through personalized

services, using advanced data analytics to tailor offerings based on customer profiles and

behavior.

Both banks should strengthen their environmental, social, and governance (ESG)

frameworks, as sustainable banking practices are increasingly important for attracting

socially conscious investors and building long-term resilience.

HDFC and ICICI should also improve transparency in their financial disclosures, by adopting

best practices in integrated reporting and sharing more real-time operational metrics with

stakeholders.

ICICI Bank can accelerate its digital transformation journey by further automating back-

office functions and expanding its suite of mobile and online banking services, to match or

exceed the digital maturity of HDFC Bank.

To remain resilient in a volatile economic environment, both banks should maintain

strong capital buffers, regularly stress test their portfolios, and remain vigilant about

macroeconomic risks such as inflation, currency fluctuation, and global financial instability.

Collaborative initiatives between banks and fintech startups could be explored by both

institutions to create innovative financial products and enhance customer experience

through smart partnerships

62 | P a g e
63 | P a g e
 CONCLUSION

CONCLUSION

64 | P a g e
The comparative analysis of the financial performance of HDFC Bank and ICICI Bank over

the period 2019 to 2023 provides valuable insights into the strengths, progress, and

competitive positions of these two major players in the Indian private banking sector.

HDFC Bank has consistently demonstrated superior financial performance across most key

parameters, including profitability, operational efficiency, liquidity, and solvency. Its stable

growth, robust earnings, higher returns, and effective cost management reflect strong internal

governance, disciplined lending practices, and customer-centric innovations. These

characteristics have enabled HDFC Bank to maintain its leadership position and market

confidence even during economic uncertainties such as the COVID-19 pandemic.

On the other hand, ICICI Bank, while initially trailing in several metrics, has shown

remarkable improvement in recent years. The bank has enhanced its profitability, reduced its

cost-to-income ratio, improved its asset quality, and strengthened its capital base. These

positive trends suggest that ICICI Bank is undergoing a successful transformation,

positioning itself as a strong and dynamic competitor in the industry.

Both banks have maintained sound liquidity and capital adequacy, reflecting their resilience

and preparedness to face future financial risks. Their steady adoption of digital banking and

emphasis on innovation have further enhanced their relevance in today’s tech-driven

economy.

In conclusion, while HDFC Bank leads in overall performance and consistency, ICICI Bank’s

rapid improvement and evolving strategy highlight its growing potential. Both institutions

serve as benchmarks for private sector banking in India, and their continued focus on

efficiency, customer service, and innovation will shape the future of Indian banking. For

65 | P a g e
investors, policymakers, and researchers, this comparative study offers critical perspectives

on sustainable banking practices and competitive dynamics in the financial services sector

66 | P a g e
 REFERENCE

67 | P a g e
REFERENCE

1. HDFC Bank. (2019–2023). Annual Reports. Retrieved from

https://www.hdfcbank.com

2. ICICI Bank. (2019–2023). Annual Reports. Retrieved from

https://www.icicibank.com

3. Reserve Bank of India (RBI). (2023). Financial Stability Report. Retrieved from

https://www.rbi.org.in

4. Khan, M.Y., & Jain, P.K. (2020). Financial Management (8th ed.). Tata McGraw Hill

Education.

5. Pandey, I.M. (2021). Financial Management (11th ed.). Vikas Publishing House.

6. Sharma, R.K., & Gupta, S.K. (2020). Management Accounting. Kalyani Publishers.

7. Kaur, P., & Kaur, G. (2022). “Comparative study of financial performance of HDFC

Bank and ICICI Bank.” International Journal of Research in Finance and Marketing,

12(5), 101–110.

8. Sinha, A. (2021). “Financial soundness and profitability analysis of selected private

sector banks in India.” Journal of Banking and Finance Review, 7(2), 65–78.

9. Moneycontrol. (2023). Financial Ratios and Stock Data for HDFC and ICICI Bank.

Retrieved from https://www.moneycontrol.com

10. Economic Times Markets. (2023). Banking Sector Updates and Analysis. Retrieved

from https://economictimes.indiatimes.com/markets

68 | P a g e
 ANNEXURE

69 | P a g e
 ANNEXURE

ICICI BANK

BALANCE MAR 25 MAR 24 MAR 23 MAR 22 MAR 21

SHEET OF
ICICI BANK (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDE
R'S FUNDS

Equity Share 1,424.60 1,404.68 1,396.78 1,389.97 1,383.41

Capital

TOTAL SHARE 1,424.60 1,404.68 1,396.78 1,389.97 1,383.41

CAPITAL

Revaluation 0.00 3,083.35 3,062.46 3,195.66 3,093.59

Reserve

Reserves and 288,581.86 232,505.97 195,495.25 165,659.93 143,029.08

Surplus

Total Reserves and 288,581.86 235,589.32 198,557.72 168,855.59 146,122.67

Surplus

TOTAL 292,076.30 238,399.32 200,715.38 170,511.97 147,509.19

SHAREHOLDE
RS FUNDS

70 | P a g e
 Deposits 1,610,348. 1,412,824. 1,180,840. 1,064,571. 932,522.16
02 95 70 61

Borrowings 123,538.26 124,967.58 119,325.49 107,231.36 91,630.96

Other Liabilities 92,277.39 95,322.73 83,325.08 68,982.79 58,770.37

and Provisions

TOTAL 2,118,239. 1,871,514. 1,584,206. 1,411,297. 1,230,432.

CAPITAL AND 97 58 65 74 68
LIABILITIES

ASSETS

Cash and Balances 119,928.12 89,711.70 68,526.17 60,120.82 46,031.19

with Reserve Bank
of India

Balances with 65,633.88 50,214.31 50,912.10 107,701.54 87,097.06

Banks Money at
Call and Short
Notice

Investments 504,756.74 461,942.27 362,329.74 310,241.00 281,286.54

Advances 1,341,766. 1,184,406. 1,019,638. 859,020.44 733,729.09

16 39 31

Fixed Assets 12,838.74 10,859.84 9,599.84 9,373.82 8,877.58

Other Assets 73,316.33 74,380.07 73,200.50 64,840.12 73,411.21

TOTAL ASSETS 2,118,239. 1,871,514. 1,584,206. 1,411,297. 1,230,432.

97 58 65 74 68

OTHER
ADDITIONAL
INFORMATION

Number of 0.00 6,523.00 5,900.00 5,418.00 5,266.00

Branches

Number of 0.00 141,009.00 126,660.00 105,844.00 98,750.00

Employees

71 | P a g e
 Capital Adequacy 16.55 16.33 18.34 19.16 19.12
Ratios (%)

KEY
PERFORMANC
E INDICATORS

Tier 1 (%) 0.00 15.60 17.60 18.35 18.06

Tier 2 (%) 0.00 0.73 0.74 0.81 1.06

ASSETS
QUALITY

Gross NPA 24,166.18 27,313.87 299,860.70 33,294.92 40,841.42

Gross NPA (%) 1.67 2.26 2.87 4.00 8.00

Net NPA 5,589.41 5,377.79 51,500.70 6,931.04 9,117.66

Net NPA (%) 0.39 0.45 0.51 0.81 2.10

Net NPA To 2.41 0.45 0.51 1.00 2.00

Advances (%)

CONTINGENT
LIABILITIES,
COMMITMENT
S

Bills for Collection 0.00 100,791.76 86,454.77 75,150.83 54,643.42

Contingent 0.00 4,655,761. 4,283,165. 3,867,675. 2,648,640.

Liabilities 78 45 87 67

HDFC BANK
72 | P a g e
 BALANCE MAR 25 MAR 24 MAR 23 MAR 22 MAR 21
SHEET OF
HDFC BANK (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDE
R'S FUNDS

Equity Share 765.22 759.69 557.97 554.55 551.28

Capital

TOTAL SHARE 765.22 759.69 557.97 554.55 551.28

CAPITAL

Revaluation 0.00 0.00 0.00 0.00 0.00

Reserve

Reserves and 496,854.21 436,833.40 279,641.03 239,538.38 203,169.55

Surplus

Total Reserves and 496,854.21 436,833.40 279,641.03 239,538.38 203,169.55

Surplus

TOTAL 501,424.62 440,245.81 280,199.01 240,092.94 203,720.83

SHAREHOLDE
RS FUNDS

Deposits 2,714,714. 2,379,786. 1,883,394. 1,559,217. 1,335,060.

90 28 65 44 22

Borrowings 547,930.90 662,153.08 206,765.57 184,817.21 135,487.32

73 | P a g e
 Other Liabilities 146,128.52 135,437.93 95,722.25 84,407.46 72,602.15
and Provisions

TOTAL 3,910,198. 3,617,623. 2,466,081. 2,068,535. 1,746,870.

CAPITAL AND 94 09 47 05 52
LIABILITIES

ASSETS

Cash and Balances 144,355.03 178,683.22 117,160.77 129,995.64 97,340.74

with Reserve Bank
of India

Balances with 95,215.65 40,464.20 76,604.31 22,331.29 22,129.66

Banks Money at
Call and Short
Notice

Investments 836,359.68 702,414.96 517,001.43 455,535.69 443,728.29

Advances 2,619,608. 2,484,861. 1,600,585. 1,368,820. 1,132,836.

61 52 90 93 63

Fixed Assets 13,655.40 11,398.99 8,016.54 6,083.67 4,909.32

Other Assets 201,004.57 199,800.20 146,712.52 85,767.83 45,925.89

TOTAL ASSETS 3,910,198. 3,617,623. 2,466,081. 2,068,535. 1,746,870.

94 09 47 05 52

OTHER
ADDITIONAL
INFORMATION

Number of 0.00 8,738.00 7,821.00 6,342.00 5,608.00

Branches

Number of 0.00 213,527.00 173,222.00 141,579.00 120,093.00

Employees

Capital Adequacy 19.55 18.80 19.26 18.90 18.79

Ratios (%)

KEY

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 PERFORMANC
E INDICATORS

Tier 1 (%) 0.00 16.79 17.13 17.87 17.56

Tier 2 (%) 0.00 2.01 2.13 1.03 1.23

ASSETS
QUALITY

Gross NPA 35,222.64 31,173.32 18,019.03 16,140.96 15,086.00

Gross NPA (%) 1.33 1.24 1.12 1.00 1.00

Net NPA 11,320.43 8,091.74 4,368.43 4,407.68 4,554.82

Net NPA (%) 0.43 0.33 0.27 0.32 0.40

Net NPA To 1.91 0.33 0.27 0.00 0.00

Advances (%)

CONTINGENT
LIABILITIES,
COMMITMENT
S

Bills for Collection 0.00 65,332.87 71,439.54 56,968.05 44,748.14

Contingent 0.00 2,296,758. 1,748,130. 1,395,442. 971,097.60

Liabilities 34 32 30

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