(a) Gross and Net NPA (Non-Performing Assets) stands at 3% and 1.39% which is the highest in the banking industry. Moreover it is showing a falling margins trend, with FY08 consolidated net margins standing at a poor 5.2 percent down from about 6.4 percent a year ago.
(b) Moreover its Return on Equity (ROE) is 7.63% and RoA is 0.71% which can be just called as poor. One can see these figures in comparison of HDFC Bank which has RoE more than 16% and RoA at 1.42%.
(c) It has its efficiency ratio which is above 50% and same is a cause of concern as private banks like Yes Bank has efficiency ratio at 29.50%, Axis Bank 37.75% and State Bank of India (36.65%).
(d) ICICI bank net interest margins (NIM) is also showing a declining trend with FY08 NIM standing at 2.22%. One can get the correct picture when one compares the same with HDFC Bank net interest margins which is over 4% for the last few years and is showing improving trend.
2. Keeping in view of above HDFC Bank is a better investment than ICICI bank and one can keep away from further investing in ICICI bank.
