Moneylife - Linkedin Moneylife - Facebook Moneylife - Twitter Moneylife - Youtube Moneylife Rss feed
close

Moneylife » Companies & Sectors » Company News & Trends » HDFC Bank clocks better results than ICICI Bank and Axis Bank

HDFC Bank clocks better results than ICICI Bank and Axis Bank

Moneylife Digital Team | 30/04/2012 03:26 PM | 

A Moneylife research compares three banks and finds out that HDFC Bank has come out at the top while Axis Bank has more work to do to get ahead of its key rivals

A comparison between Axis Bank, HDFC Bank and ICICI Bank shows that Axis Bank leaves a lot to be desired while HDFC Bank has trumped both Axis Bank and ICICI Bank. The table below shows the comparison of the three banks, using key parameters. The green bars indicate the best in that category, while red indicates the opposite. 

Axis Bank’s loan growth was slower than HDFC Bank, at 19% growth (Rs1,69,760 crore). ICICI Bank recorded the slowest credit growth, clocking only an increase of 17% (total advances at Rs2,53,728 crore) partly because it has the largest  advances portfolio. From the table above we see that HDFC Bank is the healthiest of the lot, topping in three out of five categories, while Axis Bank was worse in four out of five categories.

HDFC on the other hand recorded the highest Current Account-Savings Account (CASA) ratio (48.4%) indicating that it continues to find ways to access low cost funds to ramp up its growth. Due to higher CASA ratio and a robust 22% increase in advances, it had consolidated net profit of Rs5247, which is higher by 31.4% over last year. It also had a higher net interest margin (for the March 2012 quarter) of 4.2%, compared with 3.55% and 3.01% for Axis Bank and ICICI Bank, respectively. Net interest margin is the difference between interest earned and interest expended and is considered a key measure of a bank’s profitability. Only ICICI had highest net profit (Rs7,643 crore) than the other two, but it came at an expense of higher bad debts.

ICICI Bank had the highest Net Non-Performing Assets (NNPA) of 0.62% compared with just 0.25% and 0.20% for Axis Bank and HDFC Bank, respectively. Despite this, its Capital Adequacy Ratio (CAR) was a healthy 18.52%, compared to a measly 13.66% for Axis Bank and 16.5% for HDFC Bank.

It is interesting to note that Axis Bank’s bottomline was boosted by a 153% rise in trading profits, signifying increased risk taken to earn profits. Indeed, despite this, Axis’ profits would have stagnated but for a 10% decline in provisions, from Rs1,280 crore to Rs1,143  crore which helped the bank’s bottomline. However, fees—the jam for a bank—has increased by 25% year-on-year, to Rs4,727 crore. On the other hand, ICICI Bank’s fee income had declined from Rs6,707 crore in FY10-11 to Rs6,419 crore in FY12, a decline of over 4%. While HDFC Bank’s fees are not known from the latest filings, its “non-interest” (or “other income”) income stood at Rs5,243 crore, up 21% year-on-year.

Axis Bank restructured loans on its books stood at Rs3,060 crore, much of it from large and mid-sized companies (79% of restructured assets). It also provided for higher provision coverage ratio of 80.91%, higher than ICICI (80.4%), but lower than HDFC Bank (82.4%). ICICI Bank’s net restructured assets stood at Rs4,256 crore which is higher than Axis Bank thanks to its larger base. In HDFC Bank’s case, the quantum of restructured assets stood at 0.4% of the gross advances.

The banking industry is perceived to be going through difficult times due to low credit off-take in face of high interest rates and inflation. However, this perception could be incorrect given the extremely robust performance of HDFC Bank and ICICI Bank. The message from Axis’ performance is less clear since it is undergoing a transformation under the current CEO.
 


Post Comment

Comment

11 Comments
ICICI Bank Care

ICICI Bank Care 2 years ago

Hi R Nandy,

We would like to understand your concerns more appropriately. Please send us your contact details at care@icicibank.com and our official will get back to you. Kindly refer '2967299' in the subject line.

Regards,
ICICI Bank Customer Service Team

Reply »Link » Report abuse
X
R KRISHNAN

R KRISHNAN 2 years ago

Service level of all the banks are bad.Having dealt with many banks, service wise I think HDFC Bank is best among the worst. They at least
respond and take some steps to redress the problem.

Reply »Link » Report abuse
X
Govind Shanbhag

Govind Shanbhag 2 years ago

Respected Shri Kumar Jee- I am extremely sorry I beg to differ from your views regarding HDFC bank. I have been visting all the three bank branches in Borivali -Mumbai and also other places. Customer service, body language of the officials, waiting time at the bank, courtesy I rate HDFC as the best. Axis used to be best, now they have started drifting like ICICI who were the victim of mass banking. Even in mutual funds, HDFC have scored better.

Reply »Link » Report abuse
X
Deepak R Khemani

Deepak R Khemani 2 years ago in reply to Govind Shanbhag

I'm sure you will get people who have different experiences with different banks, so an individual having a bitter experience with a branch of a particular bank is possible, I agree with you that Axis is now going the ICICI way after the wholesale import of top people who shifted from ICICI to AXIS.

Reply» Link » Report abuse
X
R Nandy

R Nandy 2 years ago in reply to Deepak R Khemani

I am customer of both HDFC bank as well as ICICI Bank.My experience has been mixed with both of them.But,IMO HDFC has more robust systems and processes.They give higher importance to security. e.g Intenet Banking doesn't give NEFT/bill pay facility by default. ICICI also has major Internet banking security issues with phising/vishing
attacks.I can't elaborate on it here,but they seem to have major organizational lacunae with employee involvement due to which
these things happen.ICICI has massive online complaints for Netbanking fraud compared to HDFC.

HDFC also has higher accountability for customer service.Call back from Bank in case a call is disconnected in between.On the
contrary, I have experienced ICICI call centre agents disconnecting themselves.

Reply» Link » Report abuse
X
KUMAR

KUMAR 2 years ago

HDFC BANK DOES LOT OF COVERT THINGS WHICH CUSTOMERS ARE UNAWARE OF & ARE TAKEN FOR A RIDE.
THEY TAKE OUT FIFO METHOD IN SB SWEEP ACCOUNTS. THEY LEVY ALL SORTS OF CHARGES FOR THEIR GAIN WHIC OTER BANKS DONT!

THEIR MODUS OPERANDI IN MANY THINGS AND FOR CUSTOMER GRIEVANCES ISNT IN GOOD STEAD.
THEIR NETBANKING IS A CONSTANT PAIN! IT DOENST EVEN SHOW YR OVERALL BALANCE!

THEY ARE A GLITTER/SHINE WITH NO REAL STUFF!

GIVEN THE OPTION, I PREFER NOT TO BE THEIR CUSTOMER!


Reply »Link » Report abuse
X
paresh

paresh 2 years ago in reply to KUMAR

I agree with Kumar's Point about the HDFC net banking, Its the most worst of all. To add a beneficiary,they take 12 hours, which is ridiculous at the time of urgency, even if for inter bank transfers. Best is CITI bank. much better than all.

Reply» Link » Report abuse
X
paresh

paresh 2 years ago in reply to KUMAR

I agree with Kumar's Point about the HDFC net banking, Its the most worst of all. To add a beneficiary,they take 12 hours, which is ridiculous at the time of urgency, even if for inter bank transfers. Best is CITI bank. much better than all.

Reply» Link » Report abuse
X
paresh

paresh 2 years ago in reply to KUMAR

I agree with Kumar's Point about the HDFC net banking, Its the most worst of all. To add a beneficiary,they take 12 hours, which is ridiculous at the time of urgency, even if for inter bank transfers. Best is CITI bank. much better than all.

Reply» Link » Report abuse
X
paresh

paresh 2 years ago in reply to KUMAR

I agree with Kumar's Point about the HDFC net banking, Its the most worst of all. To add a beneficiary,they take 12 hours, which is ridiculous at the time of urgency, even if for inter bank transfers. Best is CITI bank. much better than all.

Reply» Link » Report abuse
X
paresh

paresh 2 years ago in reply to KUMAR

I agree with Kumar's Point about the HDFC net banking, Its the most worst of all. To add a beneficiary,they take 12 hours, which is ridiculous at the time of urgency, even if for inter bank transfers. Best is CITI bank. much better than all.

Reply» Link » Report abuse
X
Moneylife Magazine
Daily Newsletter

1,00,000 Readers

Follow Moneylife
DNL facebook icon DNL linked in icon DNL twitter icon DNL youtube icon DNL rss icon

What's your say?

How you file your income tax returns?
Online
Offline
Through CA
 
Enter Code : secure code
    change code
VOTE

What you said

How do you rate the first budget of Modi Government?

Thanks for casting your votes! View Previous Polls