Two big banking results were declared over the weekend – HDFC Bank and ICICI Bank both announced their Q4 performance. It was interesting to note that ICICI Bank’s net interest margin of 4.32% for the quarter and full year was unchanged from last fiscal, while HDFC Bank reported a net interest margin of 3.38% in Q4 as it continues to adjust its balance sheet post-merger.
At the same time, both banks reported higher profits, stable asset quality and sustained credit demand, alongside dividend payouts.
Here is a quick look at the performance of both banks in Q4FY26.
HDFC Bank vs ICICI Bank: Net interest margins hold in a defined range
HDFC Bank reported a net interest margin of 3.38% for the quarter ended March 31, 2026, with net interest income increasing to Rs 33,100 crore in Q4 FY26 from Rs 32,100 crore in Q4 FY25, marking a 3.2% YoY increase. The increase in income comes despite pressure from rising deposit costs and a higher share of term deposits.
In parallel, ICICI Bank reported a net interest margin of 4.32% for the quarter ended March 31, 2026, compared with 4.30% for the quarter ended December 31, 2025, while the margin for the year ended March 31, 2026 remains at 4.32%, unchanged from the year ended March 31, 2025. Net interest income increased to Rs 23,000 crore in Q4 FY26 from Rs 21,200 crore in Q4 FY25, reflecting 8.4% growth YoY.
Anindya Banerjee, Senior Management/Financial Officer, ICICI Bank, said, “I guess at a margin level, we continue to look at sort of range-bound margins, unlikely to move up, but should be broadly in this range is what we would think.” Banerjee adds that cost of deposits declines to 4.43% in Q4 FY26 from 4.55% in Q3 FY26.
At the same time, Kaizad Bharucha, Deputy Managing Director, HDFC Bank, added that, “ The cost of funds, while time deposit repricing can continue to be there. Again, it depends on the rate cycle and what happens. You see that there’s a stickiness in the rates across. For the last, I think at least four months, we have not seen our time deposit rate change in the market. We are fairly priced with the competition, and we’ve not seen four months of any kind of change that has happened. Which, again, as one would give some time for change, you’ve seen that there are other things in the month of March, the geopolitical thing that’s coming about, that has hardened the rates again. It remains to be seen, but it’s range-bound, is what I would say, but focus more on the returns.”
Taken together, the data and commentary indicate that margins are stabilising within a narrower band, with funding costs shaping outcomes.
HDFC Bank vs ICICI Bank: Loan growth continues
HDFC Bank reported gross advances increasing to Rs 29.60 lakh crore at March 31, 2026 from Rs 26.44 lakh crore at March 31, 2025, marking an increase of Rs 3.16 lakh crore. Advances under management increased to Rs 30.57 lakh crore at March 31, 2026 from Rs 27.73 lakh crore at March 31, 2025.
Meanwhile, ICICI Bank reported total advances increasing to Rs 15.54 lakh crore at March 31, 2026, from Rs 13.42 lakh crore at March 31, 2025, a rise of Rs 2.12 lakh crore. Domestic advances increased to Rs 15.12 lakh crore from Rs 13.11 lakh crore over the same period.
Sandeep Bakhshi, Managing Director and Chief Executive Officer, ICICI Bank, said, “Looking ahead, we see many profit opportunities to drive risk-calibrated profitable growth and grow market share across key segments. We remain focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to our shareholders.”
Similarly, Sashidhar Jagdishan, Managing Director and Chief Executive Officer, HDFC Bank, added that, “You sort of make the math, it comes to somewhere around the 13.5%-13.9%. That’s the system growth. Obviously, it has been faster. It is something that we have to navigate, but it’s not too far away from the momentum we have seen from a 5.4% growth in FY25 to a 12% growth. I think, as Kaizad was mentioning, we are very well-positioned to continue that kind of momentum in a manner that we do responsible growth, and we don’t want to overstretch beyond what could potentially have some landmines in future.”
Jagdishan adds that the bank continues to calibrate growth in line with system trends while maintaining balance sheet discipline.
HDFC Bank vs ICICI Bank: Deposit growth and funding mix remain central
HDFC Bank reports deposits increasing to Rs 31.05 lakh crore at March 31, 2026 from Rs 27.15 lakh crore at March 31, 2025, an increase of Rs 3.90 lakh crore. Average deposits increased to Rs 28.51 lakh crore in Q4 FY26 from Rs 25.28 lakh crore in Q4 FY25.
In comparison, ICICI Bank reports total deposits increasing to Rs 17.95 lakh crore at March 31, 2026 from Rs 16.10 lakh crore at March 31, 2025, an increase of Rs 1.85 lakh crore.
Sashidhar Jagdishan, Managing Director and Chief Executive Officer, HDFC Bank, says, “On the deposits. Let me first take the granularity of deposits. Retail has always been, as a proportion of total deposits, about 80%-85% of the total bank’s deposits. You have three significant verticals where we have a lot of close relationships, whether it’s corporate banking or whether it is the capital market segment as well. Now let’s talk about the 80%-85%, which is the retail segment. Within that, there is definitely a focus on trying to see how we can garner more granular time deposits.”
On the other hand, Anindya Banerjee, Senior Management/Financial Officer, ICICI Bank, said, “Post all the measures that were taken at a policy level through last year, and from our own side, I think with some of the factors like the interest rate stabilizing, benchmark stabilising, growth has picked up and the general outlook on the economy has been quite positive.”
Banerjee adds that deposit growth remains aligned with improving economic activity and internal initiatives.
HDFC Bank vs ICICI Bank: Dividend payout trend
HDFC Bank recommended a final dividend of Rs 13.00 per share for the year ended March 31, 2026, following a special interim dividend of Rs 2.50 per share, taking the total payout to Rs 15.50 per share. Standalone profit after tax increases to Rs 0.747 lakh crore in FY26 from Rs 0.673 lakh crore in FY25, while consolidated profit increases to Rs 0.760 lakh crore from Rs 0.708 lakh crore.
At the same time, ICICI Bank recommended a dividend of Rs 12 per share for the year ended March 31, 2026. Standalone profit after tax increases to Rs 0.501 lakh crore in FY26 from Rs 0.472 lakh crore in FY25, while consolidated profit increases to Rs 0.542 lakh crore from Rs 0.510 lakh crore.
The continuation of dividend payouts across both banks aligns with steady earnings growth and strong capital adequacy positions.
HDFC Bank vs ICICI Bank: Asset quality stable
HDFC Bank reports gross NPA ratio declining to 1.15% at March 31, 2026 from 1.33% at March 31, 2025, while net NPA ratio declines to 0.38% from 0.43% over the same period.
Kaizad Bharucha, Deputy Managing Director, HDFC Bank, said , “Our asset quality is extremely healthy at 1.15% gross NPAs. This has been tested across three decades of business cycles. The bank has created a large provisioning buffer of almost 125 basis points to absorb any shocks in the future. Where this is obviously contingent upon any future events that may occur in the future, we don’t have any stress in our portfolio as we speak.”
Meanwhile, ICICI Bank reports a net NPA ratio declining to 0.33% at March 31, 2026, from 0.39% at March 31, 2025, with a provisioning coverage ratio at 75.8% and contingency provisions at Rs 0.131 lakh crore.
Anindya Banerjee, Senior Management/Financial Officer, ICICI Bank, added, “I think a couple of things on the provisioning side. One, if you look at it even on a year-on-year basis on the retail side, the net additions are lower. In particular, over the last few quarters, the additions to NPLs on the unsecured side, which are provided pretty aggressively, have been coming down. That has brought down the provisioning requirements even on the retail side.”
Banerjee added that lower additions to non-performing loans are helping contain provisioning requirements.
HDFC Bank vs ICICI Bank: Guidance signals stability in margins and continued growth
HDFC Bank’s management indicates that the focus remains on return on assets, loan growth and deposit quality rather than margin expansion, while digital adoption levels of 97% for payments and 92% for service interactions support operational efficiency.
HDFC Bank vs ICICI Bank: Q4 FY26 Key Metrics Comparison
| Metric | HDFC Bank | ICICI Bank |
|---|---|---|
| Net Interest Margin (Q4 FY26) | 3.38% | 4.32% |
| Net Interest Margin (FY26) | Not disclosed (Q4 at 3.38%) | 4.32% |
| Net Interest Income (Q4 FY26) | Rs 33,100 crore | Rs 23,000 crore |
| Net Interest Income (Q4 FY25) | Rs 32,100 crore | Rs 21,200 crore |
| NII Growth (YoY) | 3.2% | 8.4% |
| Gross Advances (Mar 31, 2026) | Rs 29.60 lakh crore | Rs 15.54 lakh crore |
| Gross Advances (Mar 31, 2025) | Rs 26.44 lakh crore | Rs 13.42 lakh crore |
| Deposits (Mar 31, 2026) | Rs 31.05 lakh crore | Rs 17.95 lakh crore |
| Deposits (Mar 31, 2025) | Rs 27.15 lakh crore | Rs 16.10 lakh crore |
| Standalone PAT (FY26) | Rs 0.747 lakh crore | Rs 0.501 lakh crore |
| Standalone PAT (FY25) | Rs 0.673 lakh crore | Rs 0.472 lakh crore |
| Dividend (FY26) | Rs 15.50 per share | Rs 12 per share |
| Gross NPA (Mar 31, 2026) | 1.15% | – |
| Net NPA (Mar 31, 2026) | 0.38% | 0.33% |
| Net NPA (Mar 31, 2025) | 0.43% | 0.39% |
| Brokerage Rating (Nuvama) | Buy | Buy |
| Target Price (Nuvama) | Rs 1,050 | Rs 1,670 |
| Implied Upside | 31.3% | 23.4% |
Sashidhar Jagdishan, Managing Director and Chief Executive Officer, HDFC Bank, said, “The guiding principle is return on assets, loan growth, and deposit growth, and quality of the balance sheet from a risk standpoint.”
In addition, ICICI Bank’s outlook points to steady expansion supported by stable macro conditions and internal execution.
Sandeep Bakhshi, Managing Director and Chief Executive Officer, ICICI Bank, pointed out that, “We remain focused on enhancing delivery capabilities and focus on simplicity and operational resilience as key drivers for our well-calibrated profitable growth.”
Bakhshi added that the bank continues to align growth with risk management and capital strength.
HDFC Bank vs ICICI Bank: Brokerages highlight stable margins and asset quality strength
Additionally, brokerage commentaryoffered a clearer view on valuations and upside potential. According to a report by Nuvama Institutional Equities, ICICI Bank maintained a ‘Buy’ rating with a target price of Rs 1,670, implying an upside of approximately 23.5%, supported by expectations of consistent earnings delivery, stable margins and superior asset quality. Nuvama also retained a ‘Buy’ rating on HDFC Bank with a revised target price of Rs 1,050, implying an upside of around 31.3%. The report stated that while earnings are supported by lower credit costs and operating efficiencies, net interest income remains under pressure and margin expansion is likely to stay constrained due to the higher cost of deposits and a changing funding mix.
Conclusion
The Q4 FY26 results and management commentary from HDFC Bank and ICICI Bank indicate that both lenders are operating with stable but contained margins, supported by steady credit growth, strong deposit franchises and consistent profitability. While ICICI Bank maintained margins at 4.32% and HDFC Bank reports 3.38%, the broader direction remained aligned with earnings
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