Posted by The banking battle in India is very strong and very competative. Economic developement in India is impossible if there is an insufficient capital formation in the country. The banks encourage people to save their money and utilize that money for investing. We will discuss the top banks in india and we will compare their financials. This details of banking battle in India will help to take the good decisions for investments.
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well-regulated. The financial and economic conditions in the country are far superior to any other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have withstood the global downturn well. So now we will discuss the banking battle in india.
Banking Battle in India –
In this Banking Battle in India, we will discuss the five banks.
HDFC Bank –
HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It is India’s largest private sector bank by assets and world’s 10th largest bank by market capitalisation as of April 2021. It is the third largest company by market capitalisation of $122.50 billion on the Indian stock exchanges. It is also the fifteenth largest employer in India with nearly 120,000 employees.
ICICI Bank –
ICICI Bank Limited is an Indian multinational bank and financial services company headquartered in Vadodara. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management.
Axis Bank –
Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It sells financial services to large and mid-size companies, SMEs and retail businesses.
State Bank Of India –
State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in the world and ranked 221st in the Fortune Global 500 list of the world’s biggest corporations of 2020, being the only Indian bank on the list. It is a public sector bank and the largest bank in India with a 23% market share by assets and a 25% share of the total loan and deposits market. It is also the fifth largest employer in India with nearly 250,000 employees.
Kotak Mahindra Bank –
Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management. It is India’s third largest private sector bank by assets and by market capitalisation as of November 2021.
Now we will discuss the banking battle in India step by step by comparing their financials, sales and profits.
Sales / Revenue –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 73,271 | 85,288 | 1,05,161 | 1,22,189 | 1,28,552 | 1,35,936 |
| YOY CHANGE % | 16% | 23% | 16% | 5% | 6% | |
| ICICI Bank | 60,940 | 62,162 | 71,982 | 84,836 | 89,163 | 95,407 |
| YOY CHANGE % | 2% | 16% | 18% | 5% | 7% | |
| Axis Bank | 45,175 | 46,614 | 56,044 | 63,716 | 64,696 | 68,846 |
| YOY CHANGE % | 3% | 20% | 14% | 2% | 6% | |
| State Bank of India | 2,30,447 | 2,28,970 | 2,53,322 | 2,69,852 | 2,78,115 | 2,89,973 |
| YOY CHANGE % | -1% | 11% | 7% | 3% | 4% | |
| Kotak Mahindra Bank | 22,324 | 25,131 | 29,831 | 33,474 | 32,820 | 33,740 |
| YOY CHANGE % | 13% | 19% | 12% | -2% | 3% |
Profits / Earnings –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 15,315 | 18,561 | 22,446 | 27,296 | 31,857 | 38,151 |
| YOY CHANGE % | 21% | 21% | 22% | 17% | 20% | |
| ICICI Bank | 11,340 | 9,100 | 5,689 | 11,225 | 20,364 | 26,538 |
| YOY CHANGE % | -20% | -37% | 97% | 81% | 30% | |
| Axis Bank | 3,967 | 464 | 5,047 | 1,879 | 7,252 | 14,164 |
| YOY CHANGE % | -88% | 988% | -63% | 286% | 95% | |
| State Bank of India | -391 | -4,187 | 3,069 | 18,177 | 24,280 | 36,356 |
| YOY CHANGE % | – | – | 492% | 34% | 50% | |
| Kotak Mahindra Bank | 4,949 | 6,147 | 7,120 | 8,607 | 9,903 | 11,932 |
| YOY CHANGE % | 24% | 16% | 21% | 15% | 20% |
Now we will move towards the profitability ratio to understand this banking battle in India.
Return On Equity (ROE) –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| HDFC Bank | 17% | 17% | 15% | 15% | 15% |
| ICICI Bank | 11% | 8% | 5% | 9% | 13% |
| Axis Bank | 7% | 1% | 7% | 2% | 7% |
| State Bank of India | 0% | -2% | 1% | 7% | 9% |
| Kotak Mahindra Bank | 13% | 12% | 12% | 13% | 12% |
Return On Capital Employed (ROCE) –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| HDFC Bank | 7% | 7% | 7% | 7% | 6% |
| ICICI Bank | 6% | 5% | 5% | 6% | 5% |
| Axis Bank | 6% | 4% | 5% | 5% | 5% |
| State Bank of India | 5% | 4% | 4% | 5% | 4% |
| Kotak Mahindra Bank | 8% | 7% | 7% | 7% | 6% |
Return On Assets (ROA) –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 1.70 | 1.67 | 1.72 | 1.72 | 1.76 | 1.79 |
| ICICI Bank | 1.03 | 0.68 | 0.34 | 0.69 | 1.16 | 1.43 |
| Axis Bank | 0.64 | 0.06 | 0.61 | 0.19 | 0.71 | 1.18 |
| State Bank of India | – | -0.12 | 0.05 | 0.47 | 0.46 | 0.68 |
| Kotak Mahindra Bank | 1.78 | 1.83 | 1.82 | 1.93 | 2.08 | – |
Now we will discuss the earning ratios to compare the banking battle in India.
Earnings Per Share (EPS) –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 29.9 | 35.8 | 41.2 | 49.8 | 57.8 | 68.8 |
| ICICI Bank | 17.7 | 14.2 | 8.8 | 17.3 | 29.4 | 38.2 |
| Axis Bank | 16.6 | 1.8 | 19.6 | 6.7 | 23.7 | 46.1 |
| State Bank of India | -0.5 | -4.7 | 3.4 | 20.4 | 27.2 | 40.7 |
| Kotak Mahindra Bank | 26.9 | 32.3 | 37.3 | 45 | 50 | 60.1 |
Price To Earnings Ratio –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 24.1 | 26.4 | 28.1 | 17.3 | 25.8 | 21.4 |
| ICICI Bank | 14.2 | 19.7 | 45.4 | 18.7 | 19.8 | 19.1 |
| Axis Bank | 29.6 | 282.4 | 39.6 | 56.9 | 29.5 | 16.5 |
| State Bank of India | -598.8 | -53.3 | 93.3 | 9.7 | 13.4 | 12.1 |
| Kotak Mahindra Bank | 32.4 | 32.5 | 35.8 | 28.8 | 35.1 | 29.2 |
Now we will discuss the CFO/Profit ratio to understand cash flow of the banks which will help us to understand the banking battle in India.
CFO / Profit –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 1.13 | 0.93 | -2.80 | -0.62 | 1.33 | -0.31 |
| ICICI Bank | 4.64 | 2.13 | 8.56 | 7.09 | 6.78 | 2.19 |
| Axis Bank | 8.12 | -82.73 | 7.36 | 16.19 | 1.74 | 1.99 |
| State Bank of India | – | 23.05 | 9.63 | 1.32 | 3.70 | 1.59 |
| Kotak Mahindra Bank | 2.67 | -1.69 | 0.26 | 5.42 | 0.49 | 0.71 |
The CASA ratio is the important terms to understand the banking business. This ratio will helps us to get the best bank for the investment in the banking battle in India.
CASA (%) –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| HDFC Bank | 48.03 | 43.48 | 42.35 | 42.18 | 46.07 |
| ICICI Bank | 49.9 | 51.32 | 48.77 | 44.83 | 46.16 |
| Axis Bank | 51.22 | 53.48 | 44.18 | 41.00 | 44.84 |
| State Bank of India | 43.70 | 44.45 | 45.74 | 44.17 | 45.40 |
| Kotak Mahindra Bank | 44.34 | 50.84 | 52.46 | 56.35 | 60.47 |
The next point we will discuss in banking battle in India is Net NPA. NPA means Non-Performing Assets.
Net NPA (%) –
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 0.33 | 0.40 | 0.39 | 0.36 | 0.40 | 0.32 |
| ICICI Bank | 4.89 | 4.77 | 2.06 | 1.41 | 1.14 | 0.76 |
| Axis Bank | 2.11 | 3.40 | 2.06 | 1.56 | 1.05 | 0.73 |
| State Bank of India | 3.71 | 5.73 | 3.01 | 2.23 | 1.50 | 1.02 |
| Kotak Mahindra Bank | 1.26 | 0.98 | 0.75 | 0.71 | 1.21 | 0.64 |
Net Interest Margin (%)
| BANK | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| HDFC Bank | 3.94 | 3.88 | 3.97 | 3.79 | 3.85 | 3.64 |
| ICICI Bank | 2.64 | 2.48 | 2.65 | 2.91 | 2.95 | 3.09 |
| Axis Bank | 3.00 | 2.70 | 2.72 | 2.77 | 2.94 | 2.83 |
| State Bank of India | 2.36 | 2.27 | 2.50 | 2.59 | 2.51 | 2.58 |
| Kotak Mahindra Bank | 3.95 | 3.74 | 3.73 | 3.96 | 4.14 | – |
The sales growth and profit growth are useful to measure the growth of the banks which will help us to understand the best banks in terms of the growth rates in banking battle in India.
Sales Growth –
| BANK | 10 Years | 5 Years | 3 Years |
|---|---|---|---|
| HDFC Bank | 16% | 13.2% | 8.9% |
| ICICI Bank | 8.7% | 9.4% | 9.8% |
| Axis Bank | 10.9% | 8.8% | 7.1% |
| State Bank of India | 6.3% | 4.7% | 4.6% |
| Kotak Mahindra Bank | 13.4% | 8.6% | 4.2% |
Profit Growth –
| BANK | 10 Years | 5 Years | 3 Years |
|---|---|---|---|
| HDFC Bank | 19.8% | 16.8% | 14.0% |
| ICICI Bank | 11.1% | 20.4% | 67.8% |
| Axis Bank | 10.6% | 26.0% | 35.6% |
| State Bank of India | 7.5% | 120.9% | 112.0% |
| Kotak Mahindra Bank | 19.8% | 16.8% | 14.7% |
To understand this banking battle in India, you can check the financial details on below links,
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