ICICI Bank vs HDFC Bank: Getting Into compounding band says Jefferies

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ICICI Bank’s initiatives to de-risk loans have held it in good-stead with impact on asset quality likely to be manageable. An under-appreciated aspect is that its operating profit grew at 19-20% in FY19-20 & 18% YoY in first half of FY21. It has narrowed the gap with HDFC Bank and as retail growth & corporate-ecosystem banking pay-off with normal credit cost, ICICI Bank can grow normalised profits by 17-20%. Uptick in CASA growth is key for ICICI Bank.

ICICI Bank vs HDFC Bank: Getting Into compounding band says Jefferies

Jefferies believes that ICICI Bank will be able to leverage retail lending demand and even deepen relationships with corporate customers through ecosystem banking initiatives: Reuters



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