comparison between HDFC bank and ICICI bank

1. Group-2

2. Indroduction
HDFC bank ltd. based in Mumbai, Maharastra
incoporated in august 1994 by Housing
Development Finance Corporation Limited, which
is India’s largest housing finance company.
 India’s 3rd largest bank by total assets.
 1st bank by market capitalization.

3. Comparative Liabilities analysis
0
100000
200000
300000
400000
500000
Share capital Net worth Total Debt Total liabilities
HDFC
ICICI
Rs. In Crores
Figures as of march-12

4. Comparative Assets analysis
0
100000
200000
300000
400000
500000
Advance Investments Net block Total assets
HDFC
ICICI
Rs. In crore
Figures as of march-12

5. Earning per share
0
10
20
30
40
50
60
2009 2010 2011 2012
HDFC
ICICI
It shows the amount of
earning in accordance to
the each share of the
company.
For an investor, ICICI
bank will be a better
option, as its EPS is
considerably higher

6. Dividend Payout Ratio
0
50
100
150
200
250
2012
HDFC
ICICI
Industry avg.
 Dividend payout tells
about a company’s
payout to its
stakeholders.
 Higher the
value, better the
payout.
 Here, HDFC is having
a better payout ratio.

7. Asset turnover ratio
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2009 2010 2011 2012
HDFC
ICICI
 Amount of sales/revenue
generated for every single
rupee worth of assets.
 It indicates the effective
use of assets to generate
revenue/sales.
 Higher the ratio, higher the
efficiency.
 Here, HDFC is more
efficient.

8. Return on Networth
0
5
10
15
20
2009 2010 2011 2012
HDFC
ICICI
 It shows the return
on the total networth
of the company.
 Higher the better.
 HDFC bank’s has a
higher return.

9. Price to Earnings ratio
0
5
10
15
20
25
2012
HDFC
ICICI
Industry
avg.
 It is the valuation ratio
of company’s current
share price to its per
share earnings.
 Higher, the better.
 It tells the growth
prospect of a
company.

10. Debt to Equity Ratio
0
2
4
6
8
10
2009 2010 2011 2012
HDFC
ICICI
 It tells the relationship
between debt and equity
capital.
 Higher the value, riskier
the company to invest in.
 Here, HDFC’s value is way
higher than ICICI bank, i.e
ICICI is using less debt
capital structure as to
HDFC.

11. Financial charges coverage ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2009 2010 2011 2012
HDFC
ICICI
 This ratio shows the
company’s ability to pay its
interest charges.
 If a company’s ratio is
lower than 1, then it is not
generating enough
revenues to meet out its
interest obligation.
 Here, HDFC is better than
ICICI in comparison but
still is in the danger zone.

12. Quick Ratio
0
5
10
15
20
2009 2010 2011 2012
HDFC
ICICI
 It tells about the company’s
ability to pay its current/short-
term liabilities quickly.
 Anything higher than 1, tells
the company is competent
enough to meet its current
liability needs.
 Here, both the companies are
having a healthy ratio, but
ICICI is having much better in
compared to HDFC.

13. Conclusion
Despite being in the 3rd in the list, HDFC is having a
great potential to grow and diversify in areas
untapped in the market by reaching to the rural areas
and catering them and increasing the base of its
customers and growing along. Being a bank with
high CSR activities, it has gained itself a good name
in the sector and is thriving by giving back to the
society and also growing along by satisfying the
needs of its customers.