ICICI Bank is the new HDFC in making.
ICICI Bank- Mar Cap Rs. 6.5 Lakh Cr, CMP 930, P/B 3.02, Annual Rev TTM Rs. 1.42 Lakh Cr, Cost of Fund 4.69
HDFC Bank- Mar Cap Rs. 11.41 Lakh Cr, CMP 1506, P/B 2.9, Annual Rev TTM Rs. 2.18 Lakh Cr, Cost of Fund 4.8
Post change in ICICI Bank Management focus and ease in doing business has grown.
some points;
Customer 360 is the approach of the bank.
- Evolving needs of customer
- Decongesting Process- Removing Redundancy helped bank to reduce response time, Leveraging power of subtraction in Service delivery, Abolition of non value adding process. (Video KYC, ILens for online loan approval, etc…)
- Re Orientation of Technology
- Agile HR practice- Job Rotation and moving across roles,
- Fair to Customer Fair to bank
Multidimensional approach to bring entire bank to the customer requirement and its eco system
Product and Service to meet banking requirement of Individual customer at every life stage.
Digital Platform has helped in Customer profiling and Banking need, helping cross sell/ up sell products by ICICI bank
Salient Point:
- Credit Card Spend grew by 60% in FY23
- 29% market share in Fastag
- Supply Chain finance grew by 56%
- Their lending in five segments:
a) Retail- Is growing QoQ 6% at Rs. 6148 Billion, segment growing 18% YoY
b) Rural Loan- Growing at 4% QoQ Rs. 937 Billion, segment growing 15% YoY
c) Business Banking- Growing at 11% QoQ Rs. 828.33 Billion, segment growing 40% YoY
d) SME- Growing at 7% QoQ Rs. 542 Billion, segment growing 15% YoY
e) Domestic Corporate and Others- Growing at 3% QoQ Rs. 2489 Billion, segment growing 12% YoY - Focus on SME and Business banking growth.
- Net Interest income grew by 23% Q2 YoY and Core operating profit by 22% at Rs. 136 Billion.
- PAT increased by 35% Q2 YoY to 102.61Cr.
- Overseas Non India linked corporate portfolio reduced by 29% to ~Rs. 95 Cr.
- Cost of Fund has increased from 3.93% to 4.69%, HDFC cost of fund is 4.8 in Q2 FY24
- Avg CASA is 40%, dip of 5% YoY and 2.6% QoQ.
- NIM of ICIC is 25.2% compared to HDFC 21%. ** HDFC pre merger was at 38% to 35%.
- QoQ Total Rev Growth is 5% Q2 FY24 and last 4 Qtr 7% Avg, compared to HDFC, 38% (post merger) and 8% (Pre Merger).