The two giants of the banking space – ICICI Bank and HDFC Bank – are fighting to stay in the number one position. Quarter after quarter, ICICI Bank threatened the management of HDFC Bank, the former announcing steady growth in profits.

Even in the March quarter, ICICI Bank’s earnings beat market estimates while HDFC Bank’s fell short. It is therefore not surprising that analysts have reduced their price targets on the result of the publication HDFC Bank while improving or maintaining their targets on ICICI Bank. Going forward, analysts believe that steady growth, strong asset quality and low borrowing costs will help ICICI Bank generate low-risk returns with consistent compound earnings per share. Let’s move on to independent market analyst Ajay Bodke to better understand what’s going on for ICICI Bank? That said, there are a few metrics investors need to watch at both banks to decide the winner. From an investment perspective, analysts predict a 45% increase for HDFC Bank and 42% for ICICI Bank year-on-year. While Emkay Global is of the view that ICICI Bank can maintain its outperformance over HDFC Bank if it maintains its baseline performance and realizes a senior management bonus. Nomura believes that the tailwind from the improved NIM, which had contributed to the growth of net interest income and profit before provisioning in FY22, is likely to be at its peak for ICICI Bank. Those at JPMorgan also warn that ICICI Bank’s revaluation potential has been largely played out with the lender’s valuation gap with HDFC Bank close to zero. Overall, ICICI Bank looks well positioned to stay in the driver’s seat in the near-term banking peloton as HDFC Bank faces devaluation amid slowing growth. On Tuesday, investors will closely watch global signals for market direction. Additionally, volatility is expected to rise ahead of the monthly F&O expiration. Among individual stocks, AU Small Finance Bank, Bajaj Finance and HDFC Life will be the top companies to report their March quarter results.

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