financial comparision between hdfc & icici

Banking Structure In India

ICICI VS HDFC

V/S

Mustahid AliSwati GogawatVaibhav Jasani

Management

HDFC Aditya Puri HDFC,MD Deepak Parekh Chairman, HDFC HDFC Bank Ltd is has opened over

300 new branches across the country Hiring 1,000 to 2,000 people as part

of its expansion programme in the current fiscal.

ICICI

Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer

ICICI Bank in 2013 led the bank's low-cost rural push by exploiting technology that's at the disposal of every institution

Kochhar gave away 9,000 tablets to her staff to open accounts.

Technology

HDFC Multi-branch access is also provided

to retail customers through the branch network and ATMs

The Corporate Banking business and the Retail Banking business are supported by Flexcube, from Oracle Financial Services Software Limited

ICICI ICICI Bank Limited has launched new technology-

based initiatives including 25 electronic branches across 18 locations and services such as Tab Banking, Banking on the Move and e-Locker

The 24x7 electronic branches are one-stop shops

E-Locker, a virtual online locker available on the ICICI Bank internet banking platform

Products/servicesHDFC

Personal banking

Under Personal Banking, HDFC offers: Accounts & Deposits Loans Cards Demat Investments Insurance Forex Premium Banking Private Banking

NRI banking

Under NRI Banking, HDFC offers: Accounts & Deposits Money Transfer Investments & Insurance Research Reports Loans Premium Banking Payment Services

SME banking

Under SME Banking, HDFC offers: Accounts & Deposits Business Financing Trade Services Payments & Collections Cards

SERVICES

Wholesale banking services Retail banking services Treasury

Products/servicesICICI

Savings Account Family Wealth Account Home Loans Car Loans Foreign Exchange Services iMobile iWealth Lockers e-Locker Demat Account

Life Insurance General Insurance

Mutual Funds Portfolio Management Services * Alternative Investments Deposits

Pockets by ICICI Bank

key features of 'Pockets by ICICI Bank' are Split n share Pay a friend

MySavings Rewards Customers can redeem their reward points bylogging into his ICICI Bank internet banking accountCalling up customer careWalking into the nearest ICICI Bank branch

iWish- the flexible recurring deposit

The key features of iWish are: Flexibility Better returns: Sharing: Contributions

Green products and services

Instabanking Vehicle Finance Carbon Footprint Calculator

Internet Banking Services Trade Services Personal Banking Services Privilege Banking Products

and Services ICICI Merchant Services Foreign Exchange Services ICICI Bank Customer Service NRI Services

Services

Subsidiaries HDFC

HDB Financial Services Limited HDFC Securities Limited Atlas Documentary Facilitators Company

Private Ltd (“ADFC”) HBL Global Private Ltd (“HBL”)  HDFC Standard Life Insurance Company

Limited HDFC Asset Management Company: HDFC ERGO General Insurance

Company: Credila Financial Services:

Subsidiaries ICICIDomestic

ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited ICICI Securities Limited ICICI Securities Primary Dealership Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited ICICI Prudential Pension Funds Management Company

Limited

International

ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia Limited Liability

Company ICICI Securities Holdings Inc. ICICI Securites Inc. ICICI International LImited

Merger and Acquisitions

HDFC Times Bank Ltd. ,February 26, 2000 Centurion Bank of Punjab Ltd.,. May

23, 2008

Merger and AcquisitionsICICI

1997: ITC Classic Finance 1998: Anagram Finance 2001: Bank of Madurai 2002:ICICI Ltd ICICI Bank Ltd Sangli Bank

Ltd. 2005: Investitsionno-Kreditny Bank (IKB), a

Russian bank 2007:ICICI Bank Ltd. 2010:The Bank of Rajasthan ICICI Bank Ltd

SWOT ANALYSIS OF HDFC

Strengths • �One of the leading new age private sector bank• HDFC Bank has over 3,062 branches and over

10,583 ATMs, in 780 cities in India,• Huge employee base i.e more than 51000

employees• Large collaborations with corporate for

employee salary accounts

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Weaknesses• Rural penetration is low.• Lesser no. of branches when compared with its competitors.

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Opportunities • Mobile banking, Internet banking• Venturing into rural areas• Providing more complex products to the ever increasing

demands of the industry

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Threats • Competitors• New banking licenses• Foreign banks that offer complex products

SWOT ANALYSIS OF

STRENGTHS• 2ND Largest bank in India.• Successfully diversified it’s operations.• Listed in NYSE.• Considered as a pioneer in usage of

internet services.• Aggressive and innovative marketing

strategies.

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WEAKNESS• Primarily targets upper middle class

and upper class of the society.• Higher service charges.• Poor customer care/service• Focus only on high end customers• Transaction cost.

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OPPORTUNITIES• New IT & ITES companies • Dissatisfied customers of other

Bank• Business advising for smaller

players • Expanding business to the middle

and lower income groups.

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THREATS• Dissatisfied customers• Ever improving nationalized bank• Advent of MNC banks• More and more banks are coming

up.

ICICI

Strength 1. Front runner in the Indian Private Banking Sector

2. Strong presence via its branches3. High use of technology to make life simpler for the customers4.Large no. of facilities for the customers in terms of products and services

5. Over 75,000 employees at ICICI 6. Decades of Experience in the Banking sector

along with marketing has added to the brand name

7. Presence in over 19 countries

Weakness

1. Too much competition in the banking sector affecting employee and customer management2. Many branches in urban areas has led to high cost

Opportunity

1. Opening more branches in the rural areas2. Use of technology to penetrate rural markets3. Venturing into countries like Africa where the economy is coming up

Threats

1. Ever changing RBI policies2. International and other Competitors3.Inability to adapt to changing conditions due to large size

Targeting and Positioning strategy

• Target market– Corporate banking market– Capital market.– Retail banking market

Positioning segment :– -Customer centric

– -Service oriented

– -Product innovation

HDFC

 (CAGR Returns (%) as on 20th March 2013)

ICICI MARKETING STRATEGY

To make its presence more prominent

Focus on credit quality

To create awareness about products through

advertisement

To maintain its brand of a global bank

Targeting AND Positioning

.Targeting

ICICI has a separate marketing strategy for different segments. It tailors its marketing campaigns to meet the needs of target prospects. It has long used technology to track and create differentiated product offering for different customer segments.

Positioning The line ‘Hum hain na’, which spells trust, credibility and reinforces its position as a total financial solution provider 

ICICI

ICICI Bank HDFC Bank

1275

550

1153

475

Capital (Rs. In Cr.)

Authorized Capital Paid Up Capital

Capital Structure

0%

32%

15%6%

43%

2%0% 0% 0% 0% 0% 0%

Shares HeldDirectors Foreign Institution Financial Institution Nbanks Mutual FundsGeneral public other companies others ForeignNRIForeign Others Central Govt. Foreign OCB Foreign Collaborators

(1339800401)

ICICI Shareholding Pattern

HDFC Shareholding Pattern

1%

74%

10%

3% 9%3%0% 0%0%

Shares HeldDirectors Foreign Institution Financial InstitutionNbanks Mutual Funds General public other companiesothers ForeignNRI Central Govt.

(1559248440)

FINANCIAL RATIOSLiquidity Ratios ICICI HDFC

A. Current Ratio 0.77 0.32B. Cash Ratio 0.07 0.26     

Turnover Ratio    A. Fixed Asset Turnover Ratio 11.02 1.82B. Total Asset Turnover Ratio 0.09 0.16     

Profitability Ratio    A. Gross Profit Margin (%) 29.05 24.07B. Net Profit Margin % 18.07 16.35C. Return On Asset (%) 8.00 3D. Total Income/ Capital Employed (%) 9.33 11.36E. Return on Equity(%) 12.48 25.83     

Valuation Ratios    A. Earnings Per Share (Rs.) 79.51 29.94B. Book Value (Rs.) 633.13 114.65C. EST Price Earning Ratio 13.67 20.18D. Industry PE Ratio 15.71E. Previous Close of Market Price (Rs.)(BSE) 1087.05 677.7

ICICI Bank V/S HDFC Bank

Balance Sheet as on 30 September 2013 (Rs. in Crores)

HDFC

Balance Sheet as on 30 September 2013 (Rs. in Crores)

HDFC

Income Statement for the two half yearly of 1st Oct 2012 to 31st March 2013 and 1st April 2013 to 30thSept 2013,Unconsolidated

(unaudited) (Rs. In lakhs)

Balance Sheet as on 30 September 2013 (Rs. in Crores)

ICICI

Income Statement for the two half yearly of 1st Oct 2012 to 31st March 2013 and 1st April 2013 to 30th Sept 2013,Unconsolidated (unaudited)(Rs. in crores)

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