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

Axis Bank vs HDFC 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.

Axis Bank vs HDFC Bank


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

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.

ParticularsAxis Bank LimitedHDFC Bank Limited
Type of CompanyPublicPublic
Operating IndustryFinancial ServicesFinancial Services
Traded asBSE: 532215
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
BSE: 500180
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
Founded3rd December 1993August 1994
HeadquartersAxis House, Mumbai (Maharashtra, India)Mumbai (Maharashtra, India)
Domestic Branches5100+8,344
Key PeopleAmitabh Chaudhry (MD & CEO)
Shri Rakesh Makhija (Chairperson)
Atanu Chakraborty (Chairman)
Sashidhar Jagdishan (CEO)
credit cards, 
equities trading,
investment management,
mortgage loans, 
mutual funds, 
private equity, 
risk management,
wealth management,
asset management
Credit cards
Consumer banking
Commercial banking
Finance and insurance
Investment banking
Mortgage loans
Private banking
Private equity
Wealth management
CompetitorsHDFC Bank,
IDBI Bank,
IndusInd Bank,
Bank of Baroda (BoB),
SBI (State Bank of India)
Axis Bank,
Kotak Mahindra Bank,
Bandhan Bank,
Bank of Baroda (BoB)
Axis Bank vs HDFC Bank: Profile Comparison

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.

Financial Aspects (FY23)Axis BankHDFC Bank
Market CapitalizationRs.3.47 trillionRs.12.79 trillion
Revenue₹106,155 crore
(US$13 billion)
₹2.05 lakh crore 
(US$26 billion)
Operating Income₹33,796 crore 
(US$4.2 billion)
₹615 billion 
(US$7.7 billion)
Net Income₹10,818 crore 
(US$1.4 billion)
₹459.97 billion 
(US$5.8 billion)
Total Assets₹1,344,418 crore
(US$170 billion)
₹25.3 lakh crore 
(US$320 billion)
Total Equity₹129,356 crore
(US$16 billion)
₹2.85 lakh crore 
(US$36 billion)
Authorized Capital
(INR in thousands)
Business Comparison: Financial Analysis of Axis Bank vs 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)

CategoriesAxis BankHDFC Bank
Capital and Liabilities (INR in Thousands)
Employees’ Stock Options Outstanding4,234,118
Reserves & Surplus1,243,778,7472,796,410,334
Deposits9,469,452,104 18,833,946,463
Other Liabilities & Provisions586,636,261957,222,477
Assets (INR in Thousands)
Cash and Balances with Reserve Bank of India661,177,5651,171,607,706
Balances with Banks and Money at Call and Short Notice402,930,507766,043,125
Fixed Assets47,338,51680,165,410
Other Assets720,631,9841,467,125,151
Contingent Liabilities14,412,489,35917,481,303,179
Bills for Collection681,765,458714,395,377
Axis Bank vs HDFC Bank: Balance Sheet Comparison

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.

Aspects (FY23)Axis BankHDFC Bank
Income (INR in Thousands)
Interest Earned851,637,6561,615,855,367
Other Income165,008,717312,148,251
Expenditure (INR in Thousands)
Interest expended422,180,212747,433,173
Operating Expenses396,559,899476,520,844
Provisions and Contingencies102,109,477262,962,587
Net Profit for the Year95,796,785 1,372,943,757 
Total Appropriations476,803,3761,372,943,757 
Profit and Loss Account of Axis Bank vs HDFC Bank

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

Categories of ReservesAxis BankHDFC Bank
Statutory Reserve204,503,429626,280,835
Special Reserve14,501,9005,000,000
Share Premium Account518,932,238665,394,291
Investment Reserve Account1,484,983-26,50,000
General Reserve3,559,151 248,677,940
Capital Reserve37,900,315 56,275,415
Foreign Currency Translation Reserve5,112,4127,788,451
Investment Fluctuation Reserve17,820,00037,010,000
Balance in Profit and Loss Account 1,243,778,7471,129,599,963
Reserves and Surplus: Axis Bank vs HDFC Bank

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-

Services & AspectsAxis BankHDFC Bank
Number of Branches4,000+8,344
Number of ATMs15,000+19,727
Customer Base5.6 million120 million
SubsidiariesAxis Asset Management Company Ltd.
Axis Mutual Fund Trustee Ltd.
Axis Capital Ltd.
Axis Finance Ltd.
Axis Securities Ltd.
Axis Bank UK Ltd.
Axis Trustee Services Ltd.
Accelyst Solutions Private Ltd.
Axis Private Equity Ltd
HDFC Securities
HDFC Asset Management Company
HDFC Mutual Fund
HDB Financial Services
HDFC Credila Financial Services Limited
Minimum BalanceOffers a “Zero Balance Savings” accountRequires a minimum balance of Rs.10,000 for urban branches,
Rs.5,000 for semi-urban branches,
Rs.2,500 for rural branches
Monthly Average BalanceRequires a minimum of Rs.16,000 for metro branches,
Rs.15,000 for urban branches,
Rs.6,000 for semi-urban branches,
Rs.3,000 for rural branches
Requires a quarterly balance of Rs.2,500 or an FD of Rs.10,000 for a minimum of 1 year and 1 day for rural branches
Credit Card FeaturesOffers a personal accident insurance cover of up to Rs.5 Lakhs if swiped the card once every 90 days.
When making durable purchase using a debit card, get insured against fires, natural calamities, burglary, and housebreaking up to 90 days from date of purchase making the user eligible for Purchase Protection Plan of up to Rs.50,000
Does not offer these features
Comparing the services of Axis Bank vs 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-

Aspects of Stock PerformanceAxis BankHDFC Bank
Stock Performance (May 2018-May 2023)Increased by around 21%Increased by around 87%
Challenges FacedAsset quality concerns, management changesVolatility due to COVID-19, March 2020 decline and rebound in 2021
Investor ConfidenceAffected by challengesStrong financial performance, efficient operations
Industry ReflectionProgress in improving financial performance and digital technology investmentConsistent performer in the Indian stock market
Cautionary NotePast performance doesn’t guarantee future profits; conduct personal analysis before investmentVolatility experienced due to external factors like the COVID-19 pandemic; historical trends may not predict future outcomes
Axis Bank vs HDFC Bank: Stock Performance

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!

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Published By: Supti Nandi
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