The correction in banking stocks since March has helped reduce the valuation premium that HDFC Bank commands over ICICI Bank. From 4.2 times FY19 book, HDFC Bank’s asking rate has currently dipped to 2.8 times FY21 estimated earnings. ICICI Bank’s valuations, on the other hand, has improved from 1.8 times FY19 to 1.9 times FY21 estimated book. The number for ICICI Bank is expected to remain stable or marginally improve going ahead. In other words, HDFC Bank’s valuation premium which was twice more than that of ICICI Bank for most years between FY10 - FY19 is fast melting. At about
Sunday, December 07, 2025 | 01:45 AM ISTहिंदी में पढें
Valuation gap between HDFC Bank and ICICI Bank narrowest after correction
HDFC Bank's asking rate has been twice ICICI Bank's in the past, but the trend is fast reversing
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premium
Numbers indicate that the gap in asking rates between the two banks became pronounced from FY16, ever since ICICI Bank was caught neck-deep in cleaning up its books
