ICICI vs HDFC Bank: Which bank stock will deliver higher returns?

Bank Stocks: Citi has maintained a “buy” rating on both ICICI Bank and HDFC Bank, assigning target prices of Rs 1,700 and Rs 1,180, respectively.

The brokerage cited growth potential across key lending segments and market share opportunities as reasons for the positive outlook.

ICICI Bank Share Price Target

ICICI Bank, trading at Rs 1,364.70, reported a consolidated net profit of Rs 13,357 crore for the September quarter, up 3.2 per cent from Rs 12,948 crore in the year-ago period.

On a standalone basis, the second-largest private sector lender posted a 5.2 per cent rise in post-tax profit at Rs 12,359 crore, compared with Rs 11,746 crore a year earlier.

Core net interest income grew 7.4 per cent to Rs 21,529 crore on the back of 10.6 per cent advance growth, while net interest margin compressed to 4.30 per cent from 4.36 per cent.

Non-interest income, excluding treasury performance, rose 13.2 per cent to Rs 7,356 crore, though treasury income fell sharply to Rs 220 crore from Rs 680 crore in the year-ago quarter.

The lender’s deposit growth for the quarter was 9.1 per cent. Gross non-performing assets (GNPA) ratio improved to 1.58 per cent from 1.67 per cent in June 2025 and 1.97 per cent in September 2024.

Provisions reduced to Rs 914 crore from Rs 1,233 crore year-on-year. The overall capital adequacy stood at 17.31 per cent, with a core buffer of 17.06 per cent.

ICICI Bank Share Price History

ICICI Bank’s stock has shown mixed performance historically. Over the past year, the stock rose 1.33 per cent, while three-year gains were 51.1 per cent and five-year gains 166.17 per cent. The 52-week high and low were Rs 1,494.10 and Rs 1,187.00, respectively.

HDFC Bank Share Price Target

HDFC Bank, trading at Rs 995.60, reported a 10 per cent jump in consolidated net profit to Rs 19,610.67 crore for Q2 FY26. Standalone net profit rose 10.82 per cent to Rs 18,641.28 crore.

Overall income increased to Rs 91,040 crore from Rs 85,499 crore a year ago. GNPA improved to 1.24 per cent from 1.40 per cent in June and 1.36 per cent in September 2024.

Provisions stood at Rs 3,500 crore, up from Rs 2,700 crore in the year-ago quarter but lower than Rs 14,441 crore in Q1 FY26.

Citi highlighted that HDFC Bank efficiently manages its cost of funds through borrowing refinancing and term deposit repricing.

The expected CRR cut may channelise excess liquidity into lending, with deposit growth anticipated to outpace credit growth over the medium term.

HDFC Bank Share Price History

HDFC Bank’s stock has shown steady performance, with a one-year gain of 6.78 per cent, a three-year gain of 21.51 per cent, a five-year gain of 41.14 per cent, and a ten-year gain of 273.23 per cent. Its 52-week high and low are Rs 1,020.35 and Rs 812.13, respectively.

Which Bank Stock Will Deliver Higher Returns?

Based on current market prices of Rs 1,364.70 for ICICI Bank and Rs 995.60 for HDFC Bank, the upside potential works out to Rs 335.30 (24.6 per cent) for ICICI and Rs 184.40 (18.5 per cent) for HDFC.

This suggests that, according to Citi, ICICI Bank offers a higher percentage and absolute gain compared to HDFC Bank from current levels.