Which Bank Is Performing Better After Q2 FY26 — ICICI Bank or HDFC Bank?
ICICI Bank and HDFC Bank, India’s two largest private lenders, have both posted their Q2 FY26 results — revealing a tale of resilience, margin pressure, and steady balance sheet growth. While both banks delivered above-estimate profits, their performance dynamics differ: ICICI Bank’s higher margins contrast with HDFC Bank’s stronger profit and deposit growth.
The quarter highlighted a divergence in growth momentum — with HDFC Bank leading in bottom-line expansion and ICICI maintaining stronger NIMs. Let’s break down the detailed performance and see which stock holds more promise post-results.
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ICICI Bank Q2 FY26 — Results vs Estimates
ICICI Bank beat market expectations driven by lower provisions and improved asset quality, though growth and operating performance moderated sequentially.
| Metric | Q2 FY26 | YoY / QoQ / Estimate |
|---|---|---|
| Net Profit | ₹12,358 Cr | ↑5% YoY | ↓3% QoQ | vs Est. ₹11,933 Cr |
| NII | ₹21,529 Cr | ↑7% YoY | Flat QoQ | vs Est. ₹21,284 Cr |
| Operating Profit | ₹17,297 Cr | ↓8% QoQ |
| Provisions | ₹914 Cr | ↓50% QoQ |
| Gross NPA | ₹23,849 Cr | 1.58% vs 1.67% QoQ |
| Net NPA | ₹5,827 Cr | 0.39% vs 0.41% QoQ |
| NIM | 4.30% | vs 4.34% QoQ |
ICICI’s NIMs remain the highest among large private lenders, but loan and deposit growth slightly lag Street expectations. The improvement in asset quality, however, continues to be a standout feature.
HDFC Bank Q2 FY26 — Comparison Snapshot
HDFC Bank’s Q2 numbers also came above estimates, led by higher treasury income and consistent credit growth, though margins tightened sequentially.
| Metric | HDFC Bank | ICICI Bank |
|---|---|---|
| Net Profit (₹ Cr) | 18,641 (↑11% YoY) | 12,358 (↑5% YoY) |
| NII (₹ Cr) | 31,551 (↑5% YoY) | 21,529 (↑7% YoY) |
| NIM (%) | 3.27% | 4.30% |
| Gross NPA (%) | 1.24% | 1.58% |
| Loan Growth YoY | ↑9% | ↑10.3% |
| Deposit Growth YoY | ↑12% | ↑9% |
While ICICI maintains superior margins, HDFC Bank has outperformed in profit growth and deposit accretion — crucial for sustainable lending expansion.
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Analyst Take — Which Bank Looks Stronger?
Analysts point out that while ICICI Bank’s operational efficiency and superior NIM make it structurally attractive, HDFC Bank’s broad franchise strength and deposit momentum continue to make it the more defensive pick for long-term investors.
- HDFC Bank’s profit growth (↑11% YoY) outpaces ICICI’s (↑5% YoY).
- ICICI’s higher NIM (4.3%) offers better per-loan profitability.
- HDFC’s larger retail deposit base and steady loan growth ensure stability.
- ICICI’s lower provisions and clean asset book indicate good credit discipline.
In summary, HDFC Bank remains the safer compounder, while ICICI Bank offers higher risk-adjusted upside for investors betting on faster margin recovery.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, believes that both ICICI and HDFC continue to demonstrate strong fundamentals. However, given the consistent profit momentum, scale, and deposit growth, HDFC Bank currently edges ahead as the more balanced choice for conservative portfolios. Meanwhile, ICICI Bank’s superior NIM and improving asset quality could make it an outperformer if credit demand picks up in FY26.
Discover more expert-driven banking insights and actionable trading analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Banking Results
- Why Did HDFC Bank Outperform ICICI Bank in Q2 FY26?
- How Do NIMs Impact Bank Profitability?
- Which Private Bank Has Stronger Deposit Growth?
- Should Investors Prefer HDFC Bank or ICICI Bank Post Results?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
