Axis Bank vs HDFC Bank: Which Is The Better Bank?

This January began with the debate of Axis Bank vs HDFC Bank! Why so?  Because, recently, the private sector banks including Axis Bank and HDFC Bank hiked their fixed deposit (FD) interest rates. Now just that , they have also introduced special schemes for providing high rates of interest.

This left the folks wondering- Which is the better one in the battle of Axis Bank vs HDFC Bank?

Are you in this dilemma too? 

If yes, then worry not! 

In this article we will break down various features and delve into a detailed comparison analysis of Axis Bank vs HDFC Bank.

Let’s begin!

(A) Axis Bank vs HDFC Bank: A Brief Overview

First of all, let’s have a brief overview of both the banks.

(A.1) Axis Bank

Axis Bank Limited is the third largest private sector bank by assets. It has had a long journey since 1993 as UTI Bank. In 2007, the name was changed to “Axis Bank” from “UTI Bank.”

Do you know, it is the fourth largest private sector bank by market capitalization? We will delve into its financials in the upcoming sections.

It has a vast retail footprint of over 15,000+ ATMs and 5,000+ branches across the country.

In the dynamic world of finance, this company doesn’t just offer financial services—it’s the driving force behind the success of large and mid-size companies, SMEs, and retail businesses alike. 

As of June 30, 2016, the power players in this financial orchestra, including United India Insurance Company Limited, Oriental Insurance Company Limited, National Insurance Company Limited, New India Assurance Company Ltd, GIC, LIC, and UTI, proudly own 30.81% of the shares. 

What about the remaining 69.19%? 

Well, that’s where the stage opens up to a diverse cast of players, including mutual funds, FIIs, banks, insurance companies, corporate entities, and individual investors. It’s not just about shares. You can call it a symphony of financial collaboration!

(A.2) HDFC Bank

HDFC Bank Limited, affectionately known as HDFC, is not just your average bank—it’s a financial powerhouse headquartered in the vibrant city of Mumbai, India. It’s the largest private sector bank in India by assets, and as of August 2023, it proudly holds the title of the world’s fifth-largest bank by market capitalization. 

How did it achieve this feat? 

Well, it took over its parent company HDFC and soared to new heights. Now, it’s not just a bank; it’s been crowned a Domestic Systemically Important Bank (D-SIB) by the Reserve Bank of India due to its sheer influence.

Flashback to August 1994 when HDFC Bank made its debut on the financial stage after its parent HDFC got the green light from the RBI to shake up the private banking scene. Fast forward to January 1995, and HDFC Bank officially hit the ground running.

Now, let’s talk numbers. 

With a jaw-dropping market capitalization of $168 billion as of January 2, 2024, HDFC Bank doesn’t just dominate the financial landscape—it’s the third-largest player on the Indian stock exchanges. 

Oh, and did I mention it’s a significant employer too? 

With nearly 1.73 lakh (that’s 173,000) employees, it proudly claims the sixteenth spot among the largest employers in India. HDFC Bank isn’t just a bank; it’s a financial juggernaut with a flair for making headlines! 

(B) Axis Bank vs HDFC Bank: Profile Comparison

Here, we will go through the profile comparison of the two titans of private sector banks.

Alright! Are customers of these two banks satisfied enough? For that, I would like you to go through the customer reviews. In the next section we will take a look at their financial status.

(C) Business Comparison: Financial Performance of Axis Bank vs HDFC Bank

Can you guess the most important aspect when comparing the financial services? Its none other than “money.” How much does a company earn? What are its assets? Is it in profit or loss? And the list of questions goes on!

That’s the reason, the finances i.e. money is the most essential aspect of business comparison.

So, without any delay, let’s compare the financial performance of Axis Bank and HDFC Bank.

Here, it looks like HDFC Bank performed better financially as compared to Axis Bank.

(D) Axis Bank vs HDFC Bank: Balance Sheet Comparison

Now, let’s look at their balance sheets for the fiscal year 2023. All the data given in the following table has been taken from the annual reports (FY23) released by Axis Bank (annual report) and HDFC Bank (repositories). 

It’s time to look at the inference. From the table it is clear that HDFC bank has a stronger balance sheet than its counterpart.

(E) Profit and Loss Account of Axis Bank vs HDFC Bank

You must note that the values given in the table are in INR in thousands.

Fortunately, both the private sector banks were profitable enough in the fiscal year 2023. Despite heavy expenditures, the net profits of Axis Bank and HDFC Bank were appreciable!

(F) Reserves and Surplus: Axis Bank vs HDFC Bank

Let’s see how much reserves do both the private sector banks have! Please note that the amount/values mentioned in the table are in INR in thousands

In the reserves and surplus section, Axis Bank leads the race with greater balance in Profit and Loss account.

(G) Comparing the Services of Axis Bank vs HDFC Bank

Although both the banks offer similar services like savings accounts, different types of loans (home loans, business loans, car loans), mutual funds, etc. Therefore, here we will discuss about the differences in the services offered by Axis Bank and HDFC Bank-

Undoubtedly, the services offered by Axis bank sounds more convenient when it comes to minimum balance and credit card features. However, the monthly average balance of HDFC bank is more feasible for individuals with average income.

(H) Axis Bank vs HDFC Bank: Stock Performance

Here comes the most anticipated part for the market mavens. Stocks are not just the souls of publicly listed companies but also a key interest point for the investors. The following table describes the stock performance of Axis Bank vs HDFC Bank in the last five years-

The stock performance of HDFC bank was quite remarkable as it increased by 87%. The same aspect of Axis bank wasn’t that bad either because its performance increased by 21% in the span of the last five years.

Note: Do you know Axis Bank Credit Cards went through multiple revisions? Go through the article “What Changed For Axis Bank Credit Cards?” to uncover the details.

(I) Conclusion of Axis Bank vs HDFC Bank: Who is the winner?

The comparative analysis of Axis Bank vs HDFC Bank shows varying opinions. In the aspects like business, financials, balance sheet, and stock performance, HDFC bank is the winner.  Whereas in terms of credit cards, services, surplus and reserves, Axis Bank is the winner.

So, which one is better of the two? Well, as per the key takeaways, it depends on your preference and priorities. If you look at the perspective of business and investments, you may go with HDFC but for services, Axis Bank is good to go for you!