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HDFC Bank beats ICICI Bank for the second spot.

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Sensex has tanked 1000+ points in the worst fall ever. With Diwali just 2 days away no one is really celebrating and the Diwali mood did not set in yet. May be a few crackers would do for us. But there is one person who is happy. Not about the fall but what happened after the fall. Aditya Puri, CMD of HDFC Bank. HDFC bank has beaten ICICI bank in market capitalization to gain the second spot. State bank of India still has the first spot.

Market capitalization is calculated by multiplying the outstanding shares with the current market hdfc_logo.gifprice of the share. Based on this calculation HDFC bank’s market capitalization stands at 45563 crores and ICICI bank’s market-cap stands at 40698 crores. The fact that ICICI bank icicibanklogo.gifis on a free fall and HDFC bank has a reasonable fall has helped this. Though this difference might be wiped out in a week it is something to cheer about for HDFC bank and a lot to think for ICICI Bank.

ICICI bank has been very aggressive with their loans, overseas expansion and portfolio of products. HDFC bank has opened its first overseas branch couple of days ago in Bahrain. HDFC has been cautious about lending the whole time.

I have personal loans with ICICI, Kotak Mahindra and HSBC bank. I also have a car loan with ICICI bank. I recently applied for another personal loan but was rejected. Can you guess which bank it is? It’s HDFC bank. That is how they run their business. With a little caution and a little aggression. I am actually not happy about the rejection but now I know their business strategy. Looking at my loan laundry list you might be wondering about the kind of life I am living. That would be a topic for another post.

Other thing, which strikes me the most, is the brand recall. HDFC does not have the brand recall that ICICI enjoys. That is the reason why it wasn’t subjected to so many rumors. Any news about ICICI has to be taken with a pinch of salt. I am really not sure which one is a rumor and which one is not. Yesterday when the RBI has reduced the repo rate to 8% there was news from ICICI bank that they are increasing the home loan rates for new borrowers. That did not make any sense to me. Why would a bank do that especially when every one knows that the interest rates were just reduced? Then came a statement from the bank that the rates were hiked before the cut was announced. Now, who would take a home loan from ICICI when it will be available for a cheaper rate in the  next bank? I did not even mention the number of rumors that went around ICICI bank.

Have you heard anything about HDFC bank lately? I haven’t. That is the reason why it’s the best bank and second in market capitalization.

This is the tale of two banks. Aggression is good but controlled aggression is even better. ICICI bank might regain its spot but HDFC bank will remain as the top bank.

  1. p k sharma says

    many people says that the hdfc is best. but my experience is very bad. the bank never send statement and receipts of mutual funds. then how u can say it is best.

  2. Malli says

    Hi,

    Yes you are right, ICICI is taking their customers for granted, I did not get last 2 quarters statement. I have enquired in Help line they said I have mentioned wrong PINCODE, so I am not getting statement, surprising god is grate I have received my cheque book promptly so he said he cannot dispatch statement since pin code is wrong. I have started calling in help line to change my PINCODE they said their server problem I could not update online I have to wait for helpline finally could change my PINCODE. I have called them for my statement dispatch they said it will take 8 days or asked me to walk-in to any branch and collect the statement and they will deduct Rs. 115. I have no-option walked in to Teynampet Chennai branch for 10.30 am I have taken token and waited for my number up to 11.30 I did not call of my token number, one of the staff advised me to check with complain sec he took 10 minutes and advised me to contact in one counter. I started filling the application in the gap bank officer was marketing their investment plans, I said I am not interested. Suddenly she said you will get statement in the evening, I said funny I am waiting for last one hour for the same and lost my half working day I said nothing doing I will wait finally by 12.00PM I could collect my statement.

    Funny Sometimes I think OLD IS GOLD same 12.10 PM I walked in to Union Bank for statement I handed-over my passbook in 5 minutes passbook got updated took xerox of statement and handed over for loan application.

    ICICI has kept options, services are neither useful nor beneficial, they keep fool around and talk rules. I hope rules should enable and beneficial to the client.

  3. Anand Subbiah says

    Please, please, please don’t buy a homeloan from HSBC for God’s sake. They lure new customers with customized discount on their floating rate, which they would not only adjust with the market within 6 months but will never **NEVER** reduce, even if lending/interest rate goes down and all other banks reduce their interest rates.

    Take my own example, I went with HSBC home loan in 2005 at 8% interest rate. Now their RLS is 15%, with 1.75% less on RLR, I pay 13.25% interest. I also have a homeloan from SBT (State Bank of Travancore) which is a PSU bank, where I pay an interest of 11.5%. Today they have announced a further cut of 50 basis points which means the inr rate would be 11%. Unfortunately, HSBC is not going to reduce the interest rate!!! HSBC is probably the first few banks to increase the rate whenever the lending rates go up..

    My since and humble request to all the ordinary & simple salary earners: Please don’t ever buy a homeloan from HSBC. For God’s sake and your family sake!!!

  4. India Tour packages says

    The services of ICICI Bank have gone from bad to worst. Any time you visit ATM of ICICI either the machine is not working or there is no money

  5. Milan says

    I love HDFC Bank.

    HDFC is for classes and ICICI is for masses. There is lot of difference when you visit HDFC branch (I hardly visit due to internet banking facility), they are calm, ready to listen your queries and resolve them ASAP. Their service charges are higher but they worth every penny of it. On the other hadn, ICICI Bank take their customers for granted as they have lot to handle and less people to take care of it. HDFC started with corporate banking and thats why they know how to handle customers and their repo.

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