HDFC Bank vs ICICI Bank vs Yes Bank: Shares of banking companies like HDFC Bank, ICICI Bank and Yes Bank will remain in focus on Monday, 20 July, after the companies reported their financial results for the quarter ended on 30 June, 2026 (Q1 results FY26) on Saturday, 18 June.
HDFC Bank vs ICICI Bank vs Yes Bank: Q1 results 2026 review
HDFC Bank Q1 results review
HDFC Bank posted a standalone net profit of ₹19,060 crore for the April–June quarter of FY27, marking a 5% year-on-year (YoY) increase from ₹18,155 crore reported in the same quarter of the previous financial year.
HDFC Bank’s net interest income (NII), or the difference between interest earned and interest paid, increased 7% year-on-year to ₹33,534 crore in the first quarter of FY27, compared with ₹31,438 crore in the corresponding quarter of the previous fiscal.
During the quarter, the bank’s gross non-performing assets (NPAs) declined over 3% year-on-year to ₹35,846 crore, while net NPAs edged up marginally to ₹12,357 crore.
The lender reported a net interest margin (NIM) of 3.26% on total assets and 3.40% on interest-earning assets. Meanwhile, its total balance sheet expanded to ₹43.97 lakh crore as of June 30, 2026, from ₹39.54 lakh crore a year earlier.
ICICI Bank Q1 results review
ICICI Bank reported a 16% year-on-year increase in net profit to ₹14,804.50 crore for the June quarter, compared with ₹12,768.21 crore in the corresponding period last year.
The lender also posted robust growth in its core lending operations, with net interest income (NII) rising 12.7% year-on-year to ₹24,384 crore during Q1 FY27. The increase was supported by healthy credit growth and improved margins. Net interest margin (NIM) came in at 4.36% for the quarter, slightly higher than 4.34% recorded a year earlier.
Asset quality remained strong, with the gross non-performing asset (GNPA) ratio improving to 1.38% and the net non-performing asset (NNPA) ratio at 0.35% as of June 30, 2026.
The bank’s total advances rose 19.6% year-on-year to ₹16,31,260 crore at the end of the June quarter, while deposits grew 14% to ₹18,33,586 crore. Retail loans made up 49.2% of the total loan portfolio and expanded 12% from the year-ago period.
Yes Bank Q1 results review
Yes Bank reported a net profit of ₹1,071 crore for the April–June 2026 quarter, marking a 33.7% YoY increase and a marginal 0.2% QoQ rise. Its net interest margin (NIM) for Q1 FY27 improved to 2.7%, up 20 basis points from a year ago, supported by a lower cost of deposits and reduced balances of Priority Sector Lending (PSL) shortfall deposits.
The private sector lender posted a 18.3% YoY and 4.3% QoQ growth in advances, while deposits increased 14.3% YoY. On an Average Quarterly Balance (AQB) basis, advances and deposits grew 15.1% and 14.8% YoY, respectively.
CASA deposits rose 14.3% YoY, while CASA growth on an AQB basis came in slightly higher at 15% YoY.
Retail asset disbursements maintained strong momentum during the quarter, surging 27.5% YoY, reflecting continued traction in the bank’s retail lending business.
HDFC Bank vs ICICI Bank vs Yes Bank: Which banking stock to buy after Q1 results 2026?
HDFC Bank
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, for long-term investors, the private lender is the defensive compounder. It offers predictability, best-in-class underwriting, and a dominant retail franchise, though ROE expansion will hinge on merger synergies and CASA recovery. It fits as a core portfolio holding for stability and compounding.
ICICI Bank
Srivastava said that over the past five years, ICICI has consistently gained market share without sacrificing asset quality, backed by a strong digital and retail engine.
“For long-term investors, it offers a rare combination: HDFC-like credit discipline with faster growth and superior margins. That translates into higher sustainable ROE and stronger compounding potential, making it the most attractive risk-reward bet among large private banks,”
Yes Bank
For Yes Bank shares, Srivastava added that the thesis rests on execution: scaling granular deposits, lifting RoA to 1%+, and sustaining 15%+ loan growth. If delivered, a re-rating is likely; if not, risks persist. It suits investors with higher risk appetite as a small, opportunistic allocation.
“Overall, ICICI Bank leads for long-term growth-plus-quality, HDFC Bank is the stable core compounder, and Yes Bank is a high-risk turnaround play. A balanced approach would overweight ICICI, hold HDFC for defensiveness, and use Yes Bank only for tactical upside,” she said.
On the other hand, Harshal Dasani, Business Head – INVasset PMS, believes that the Q1 earnings season reinforces a familiar trend. The gap between the top private sector banks and the turnaround stories continues to widen.
“On a post-Q1 basis, ICICI Bank remains the strongest pick on fundamentals, followed by Kotak Mahindra Bank, while HDFC Bank is a steady long-term compounder rather than a near-term earnings leader,” Dasani said.
Key Takeaways
- ICICI Bank is viewed as the strongest investment choice post-Q1 results, offering growth and quality.
- HDFC Bank is recognized for its stability and long-term compounding potential.
- Yes Bank represents a higher-risk investment option reliant on successful execution of its turnaround strategy.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
