Comparative Financial Analysis of ICICI Bank and HDFC Bank

Abstract

The process of examining businesses, initiatives, budgets, and other financial-related activities in order to judge their efficacy and appropriateness is known as financial analysis. Financial analysis can be done through various tools and techniques which help in interpretation of financial performance and position of the company. The following report is about the financial analysis of the two leading companies of banking sector, HDFC Bank Ltd. and ICICI Bank Ltd. “The Indian banking industry is sufficiently capitalized and well-regulated”, says RBI. The sector has witnessed innovation and growth in the past couple of years. The technique of comparing things to one another and pointing out similarity and difference is known as comparative analysis. It allows to understand the issue in a better way and form strategies in response. It includes both horizontal analysis and vertical analysis, where horizontal analysis represents changes over years or periods, while vertical analysis represents amounts as percentages of a base figure. The main intent of this research is to check the efficiency of two banks and to know which bank is financially stable and healthy.