Financial comparision between hdfc & icici
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Transcript of Financial comparision between hdfc & icici
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Banking Structure In India
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ICICI VS HDFC
V/S
Mustahid AliSwati GogawatVaibhav Jasani
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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.
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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.
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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
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ICICI ICICI Bank Limited has launched new technology-
based 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
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Products/servicesHDFC
Personal banking
Under Personal Banking, HDFC offers: Accounts & Deposits Loans Cards Demat Investments Insurance Forex Premium Banking Private Banking
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NRI banking
Under NRI Banking, HDFC offers: Accounts & Deposits Money Transfer Investments & Insurance Research Reports Loans Premium Banking Payment Services
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SME banking
Under SME Banking, HDFC offers: Accounts & Deposits Business Financing Trade Services Payments & Collections Cards
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SERVICES
Wholesale banking services Retail banking services Treasury
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Products/servicesICICI
Savings Account Family Wealth Account Home Loans Car Loans Foreign Exchange Services iMobile iWealth Lockers e-Locker Demat Account
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Life Insurance General Insurance
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Mutual Funds Portfolio Management Services * Alternative Investments Deposits
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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 bylogging into his ICICI Bank internet banking accountCalling up customer careWalking into the nearest ICICI Bank branch
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iWish- the flexible recurring deposit
The key features of iWish are: Flexibility Better returns: Sharing: Contributions
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Green products and services
Instabanking Vehicle Finance Carbon Footprint Calculator
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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
Services
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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:
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Subsidiaries ICICIDomestic
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
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International
ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia Limited Liability
Company ICICI Securities Holdings Inc. ICICI Securites Inc. ICICI International LImited
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Merger and Acquisitions
HDFC Times Bank Ltd. ,February 26, 2000 Centurion Bank of Punjab Ltd.,. May
23, 2008
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Merger and AcquisitionsICICI
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
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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
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Continue…
Weaknesses• Rural penetration is low.• Lesser no. of branches when compared with its competitors.
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Opportunities • Mobile banking, Internet banking• Venturing into rural areas• Providing more complex products to the ever increasing
demands of the industry
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Threats • Competitors• New banking licenses• Foreign banks that offer complex products
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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.
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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.
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OPPORTUNITIES• New IT & ITES companies • Dissatisfied customers of other
Bank• Business advising for smaller
players • Expanding business to the middle
and lower income groups.
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THREATS• Dissatisfied customers• Ever improving nationalized bank• Advent of MNC banks• More and more banks are coming
up.
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ICICI
Strength 1. Front runner in the Indian Private Banking Sector
2. Strong presence via its branches3. High use of technology to make life simpler for the customers4.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
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Weakness
1. Too much competition in the banking sector affecting employee and customer management2. Many branches in urban areas has led to high cost
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Opportunity
1. Opening more branches in the rural areas2. Use of technology to penetrate rural markets3. Venturing into countries like Africa where the economy is coming up
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Threats
1. Ever changing RBI policies2. International and other Competitors3.Inability to adapt to changing conditions due to large size
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Targeting and Positioning strategy
• Target market– Corporate banking market– Capital market.– Retail banking market
Positioning segment :– -Customer centric
– -Service oriented
– -Product innovation
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HDFC
(CAGR Returns (%) as on 20th March 2013)
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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
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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
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ICICI
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ICICI Bank HDFC Bank
1275
550
1153
475
Capital (Rs. In Cr.)
Authorized Capital Paid Up Capital
Capital Structure
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0%
32%
15%6%
43%
2%0% 0% 0% 0% 0% 0%
Shares HeldDirectors Foreign Institution Financial Institution Nbanks Mutual FundsGeneral public other companies others ForeignNRIForeign Others Central Govt. Foreign OCB Foreign Collaborators
(1339800401)
ICICI Shareholding Pattern
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HDFC Shareholding Pattern
1%
74%
10%
3% 9%3%0% 0%0%
Shares HeldDirectors Foreign Institution Financial InstitutionNbanks Mutual Funds General public other companiesothers ForeignNRI Central Govt.
(1559248440)
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FINANCIAL RATIOSLiquidity Ratios ICICI HDFC
A. Current Ratio 0.77 0.32B. Cash Ratio 0.07 0.26
Turnover Ratio A. Fixed Asset Turnover Ratio 11.02 1.82B. Total Asset Turnover Ratio 0.09 0.16
Profitability Ratio A. Gross Profit Margin (%) 29.05 24.07B. Net Profit Margin % 18.07 16.35C. Return On Asset (%) 8.00 3D. Total Income/ Capital Employed (%) 9.33 11.36E. Return on Equity(%) 12.48 25.83
Valuation Ratios A. Earnings Per Share (Rs.) 79.51 29.94B. Book Value (Rs.) 633.13 114.65C. EST Price Earning Ratio 13.67 20.18D. Industry PE Ratio 15.71E. Previous Close of Market Price (Rs.)(BSE) 1087.05 677.7
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ICICI Bank V/S HDFC Bank
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Balance Sheet as on 30 September 2013 (Rs. in Crores)
HDFC
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Balance Sheet as on 30 September 2013 (Rs. in Crores)
HDFC
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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)
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Balance Sheet as on 30 September 2013 (Rs. in Crores)
ICICI
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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)
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