Index heavyweights HDFC Bank and ICICI Bank have reported Q3FY23. Beating Street estimates, ICICI Bank reported a 27.64% jump in consolidated net profit, while HDFC Bank reported a 19.8% jump in net profit for the quarter.
ICICI Bank recorded a consolidated net income of Rs 53,922.75 crore during Q4FY23, up by 25.88% YoY. Its net expenses stood at Rs 38,716.56 crore during the quarter ended March 2023.
HDFC Bank posted 19.8% growth YoY in net profit to Rs 12,047.5 crore for the quarter ended March 31, 2023 (Q4FY23). Net interest income (NII) jumped by 23.7% to Rs 23,351.8 crore in the quarter under review.
ICICI Bank's board recommended a dividend of Rs 8 per share, subject to requisite approvals. However, HDFC Bank did not announce any dividend.
“If someone has to choose between HDFC Bank and ICICI Bank, then my suggestion for such an investor is to go for HDFC Bank, especially if the perspective is medium to long-term," said Ravi Singhal, CEO, GCL Broking.
According to Ravi Singhal, CEO, GCL Broking, despite Q4 results below estimates, HDFC Bank should be preferred over ICICI Bank as the HDFC-HDFC Bank merger will lead to improvement in the net income margins of the bank, and hence strong financials in upcoming quarters can be expected.
After ICICI Bank reported robust numbers for Q4FY23, several brokerages have a bullish stance on ICICI Bank stock. JM Financial, Kotak Securities, HDFC Securities, Choice Broking, and LKP Securities have a 'buy' tag on ICICI Bank shares with a target price of up to Rs 1,165 per share.
HDFC Bank's share price has grown by 2 times in the past three years. Analysts at Sharekhan, ICICI Securities, Kotak Institutional Equities, Prabhudas Lilladher, Motilal Oswal have assigned a 'buy' rating to the stock with a target price of up to Rs 1,990 per share.
In the last one year, HDFC Bank share price has jumped more than 22%, outperforming benchmark Bank Nifty which has rallied 17%. Meanwhile, ICICI Bank share price has jumped around 19% in the last 12 months. Year-to-date, both stocks are trading marginally in red.
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