This document compares and contrasts two major banks in India: HDFC Bank and ICICI Bank. It provides details on their management, technology, products/services, subsidiaries, mergers and acquisitions. It also includes a SWOT analysis and financial comparisons for each bank. The key points are that HDFC Bank has over 3,000 branches while ICICI Bank is the second largest bank in India and was a pioneer in using internet services. Both banks offer a wide range of personal and commercial banking services and have expanded through acquisitions.

1. Banking Structure In India

2. ICICI VS HDFC
Mustahid Ali
Swati Gogawat
Vaibhav Jasani

3. 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.

4. 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.

5. 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

6. ICICI
 ICICI Bank Limited has launched new technologybased 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

7. Products/services
HDFC
 Personal banking
Under Personal Banking, HDFC offers:
 Accounts & Deposits
 Loans
 Cards
 Demat
 Investments
 Insurance
 Forex
 Premium Banking
 Private Banking

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

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

10. SERVICES
 Wholesale banking services
 Retail banking services
 Treasury

11. Products/services
ICICI










Savings Account
Family Wealth Account
Home Loans
Car Loans
Foreign Exchange Services
iMobile
iWealth
Lockers
e-Locker
Demat Account

12.  Life Insurance
 General Insurance

13.  Mutual Funds
 Portfolio Management Services *
 Alternative Investments
 Deposits

14.  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 by
logging into his ICICI Bank internet banking account
Calling up customer care
Walking into the nearest ICICI Bank branch

15. iWish- the flexible recurring deposit
The key features of iWish are:
 Flexibility
 Better returns:
 Sharing:
 Contributions

16. Green products and services
 Instabanking
 Vehicle Finance
 Carbon Footprint Calculator

17. Services
 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

18. 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:

19. Subsidiaries
ICICI
Domestic











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

20. International
 ICICI Bank UK PLC
 ICICI Bank Canada
 ICICI Bank Eurasia Limited Liability Company
 ICICI Securities Holdings Inc.
 ICICI Securites Inc.
 ICICI International LImited

21. Merger and Acquisitions
HDFC
 Times Bank Ltd. ,February 26, 2000
 Centurion Bank of Punjab Ltd.,. May 23, 2008

22. Merger and Acquisitions
ICICI





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

23. 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

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

25. CONTINUE...
Opportunities
• Mobile banking, Internet banking
• Venturing into rural areas
• Providing more complex products to the ever increasing
demands of the industry

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

27. 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.

28. Continue…
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.

29. Continue…
OPPORTUNITIES
• New IT & ITES companies
• Dissatisfied customers of other Bank
• Business advising for smaller players
• Expanding business to the middle and lower
income groups.

30. Continue…
THREATS
• Dissatisfied customers
• Ever improving nationalized bank
• Advent of MNC banks
• More and more banks are coming up.

31. ICICI
 Strength
 1. Front runner in the Indian Private Banking Sector
2. Strong presence via its branches
3. High use of technology to make life simpler for the
customers
4.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

32. Weakness
 1. Too much competition in the banking
sector affecting employee and customer
management
2. Many branches in urban areas has led to
high cost

33. Opportunity
 1. Opening more branches in the rural areas
2. Use of technology to penetrate rural
markets
3. Venturing into countries like Africa where
the economy is coming up

34. Threats
 1. Ever changing RBI policies
2. International and other Competitors
3.Inability to adapt to changing conditions
due to large size

35. Targeting and Positioning strategy
• Target market
– Corporate banking market
– Capital market.
– Retail banking market
Positioning segment :
– -Customer centric
– -Service oriented
– -Product innovation

36. HDFC
(CAGR Returns (%) as on 20th March 2013)

37. 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

38. 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

39. ICICI

43. Capital (Rs. In Cr.)
1275
1153
550
475
ICICI BANK
HDFC BANK
Authorized Capital
Paid Up Capital

44. Shares Held (1339800401)
Directors
Foreign Institution
Financial Institution
Nbanks Mutual Funds
General public
other companies
others
ForeignNRI
Foreign Others
Central Govt.
Foreign OCB
Foreign Collaborators
0%
0%
0%
0% 0%
0%
0%
2%
33%
43%
16%
6%

45. Shares Held (1559248440)
Directors
Foreign Institution
Financial Institution
Nbanks Mutual Funds
other companies
others
ForeignNRI
Central Govt.
0%
0%
3%
9%
0%
1%
3%
10%
74%
General public

46. FINANCIAL RATIOS
Liquidity Ratios
A. Current Ratio
B. Cash Ratio
ICICI
0.77
0.07
HDFC
0.32
0.26
Turnover Ratio
A. Fixed Asset Turnover Ratio
B. Total Asset Turnover Ratio
11.02
0.09
1.82
0.16
Profitability Ratio
A. Gross Profit Margin (%)
B. Net Profit Margin %
C. Return On Asset (%)
D. Total Income/ Capital Employed (%)
E. Return on Equity(%)
29.05
18.07
8.00
9.33
12.48
24.07
16.35
3
11.36
25.83
79.51
633.13
13.67
15.71
1087.05
29.94
114.65
20.18
Valuation Ratios
A. Earnings Per Share (Rs.)
B. Book Value (Rs.)
C. EST Price Earning Ratio
D. Industry PE Ratio
E. Previous Close of Market Price (Rs.)(BSE)
677.7

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

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

51. 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)

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

53. 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)

54. THANK YOU