Journal of African Development

Financial Ratio Analysis of ICICI Bank & HDFC Bank: A comparative study This research seeks to analyse their profitability, liquidity, capital strength and overall performance in recent years. The analysis uses secondary data from published financial statements and reports. Sample of financial ratios analysis of net profit margin, return on equity, capital adequacy and credit–deposit ratio is compared.

In terms of profits and returns to shareholders, ICICI Bank outstrips HDFC Bank while the latter shows superior capital adequacy. But HDFC has increasing lending exposure and ICICI must strengthen its capital position further. The study points out that while both banks are financially solid, they pursue diverging strategies. By providing a rating for both banks based on their financials and strategy/risk profile the A&M authors hope to guide investors when choosing between them. This makes ratio analysis useful in understanding their strengths, weaknesses and area of focus...