HDFC, ICICI, and Axis Banks are three of India’s biggest private sector banks. If you have decided to open your account in a private bank, your choice basically boils down to these three. With all of them claiming to be the best, it must be very confusing to decide which one is best for you. In this article, i will try to answer exactly that. Since I have bank account with all these 3 banks, I will try to summarize my experience in this article.
HDFC Bank:
HDFC Bank is India’s largest private sector bank with a total asset of ₹25.3 lakh crore(US$320billion) as of 2023. It was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
The Bank’s distribution network consists of 7,860 branches and 20,352 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 3,825 cities/towns.
HDFC Bank is known for its extensive branch network, good customer service, and wide range of banking products and services. They have a user-friendly online banking platform and offer various savings account options tailored to different customer segments
Customer Base:
HDFC Bank, one of India’s leading private sector banks, has a vast and diverse customer base. With its inception in 1994, HDFC Bank has steadily grown its clientele, making it the largest private sector bank in the country.
The bank’s customer base includes millions of retail customers, ranging from salaried employees, professionals, and entrepreneurs to students and homemakers. They also serve a substantial number of corporate clients, small and medium-sized enterprises (SMEs), and large businesses. HDFC Bank has the largest customer base among these 3 banks with over 68 million customers.
HDFC Bank has a strong presence in urban areas. It is expanding its operations in rural areas.
Financial Performance:
In terms of financials, HDFC Bank has seen steady and healthy growth. HDFC bank’s net revenue for FY23 stood at 170,754 crore (25% increase from last year). They also registered a profit of 46,149 crore which is a 21% increase from last year.
ICICI Bank:
Established in 1994, ICICI Bank has grown to become a prominent player in the Indian banking sector and is known for its innovative solutions and customer-centric approach. ICICI bank is now India’s 2nd largest private sector bank with a market cap of INR 6.99 lakh crores. With its headquarters in Mumbai, ICICI Bank operates through a vast network of branches and ATMs across India. It has currently 5275 branches and 15,589 ATMs across India.
Customer Base:
ICICI Bank boasts an extensive and diverse customer base, making it the 2nd largest private sector bank in India. Around 52 million people in India trust their money with ICICI Bank. With a major presence across all the metro and Tire 1 cities, they have also extended into Tire 2 and Tire 3 cities.
Financial Performance:
Over the years, the bank has demonstrated robust growth, stability, and profitability. ICICI Bank’s net revenue for FY23 stood at 121,067 crore (27% increase from last year). They also registered a net profit of 35,461 crore which is a 33% increase from last year.
Axis Bank:
Axis Bank is one of India’s leading private sector banks, providing a wide range of financial services and products. Established in 1993, the bank has grown rapidly to become a significant player in the Indian banking industry. It was formally known as UTI Bank, got rebranded to Axis Bank in 2007.
Customer Base:
Axis Bank’s Extensive Customer Base consists of retail customers, corporate and SME clients, NRIs, Government and Institutions, and digital banking customers. They have about 20 million active customers as of 2023.
Financial Performance:
Axis Bank had demonstrated a strong and consistent financial performance over the years. Axis Bank’s net revenue for FY23 stood at 87,448 crore (27% increase from last year). They also registered a net profit of 10,919 crore which is a 23% decline from last year.
Key factors to consider while opening your savings account:
Here are some key factors to consider when opening a savings account:
- Bank Reputation: Choose a reputable bank that is known for good customer service and reliable operations. Look for banks that have a strong presence and positive reviews.
- Account Type: Decide whether you want a basic savings account or one with additional benefits, like a zero-balance account, salary account, or a premium savings account with added features.
- Minimum Balance: Check the minimum balance requirement for the account. Some accounts may require you to maintain a specific minimum balance, and failing to do so may result in penalties.
- Interest Rate: Compare the interest rates offered by different banks. Even small differences can make a significant impact on your savings over time.
- Fees and Charges: Be aware of any fees or charges associated with the savings account, such as transaction fees, ATM charges, or account maintenance fees. Also, there are many hidden charges associated with some of the banks. Make sure to check all these.
- Accessibility: Check the bank’s network of ATMs and branches. It’s essential to have easy access to your money whenever you need it.
- Online Banking: Ensure that the bank offers a user-friendly and secure online banking platform. This will make it convenient for you to manage your account and conduct transactions online.
- Customer Service: Consider the quality of customer service offered by the bank. Look for easy access to customer support and helpful staff.
- Documents Required: Be prepared with the necessary identification and address proofs, as well as passport-sized photographs, required to open the account.
- Additional Features: Some banks offer additional features like a debit card, mobile banking, and online bill payment facilities. Assess if these features align with your needs.
- Safety and Security: Ensure that the bank employs robust security measures to safeguard your account and personal information.
HDFC vs ICICI vs Axis:
| Factors | HDFC Bank | ICICI Bank | AXIS Bank |
| Market Cap | ₹12.68 Lakh Crores | ₹6.99 Lakh Crores | ₹3 Lakh Crores |
| Total asset | ₹25.3 lakh crores | ₹19.58 lakh crores | ₹13.44 lakh crores |
| distribution network | 7,860 branches and 20,352 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 3,825 cities/towns | 5275 branches and 15,589 ATMs across India. | 4,903 domestic branches (including extension counters) with 15,953 ATMs & cash recyclers spread across the country |
| Net profit | ₹44,108.7 crores in FY23 (Growth of 19% from last year) | ₹31,896.50 crores in FY23 (Growth of 36% from last year) | ₹32,291 crores in FY23 (Growth of 40% from last year) |
| Customer base | About 68 million | About 52 million | About 20 million |
| Minimum balance requirement (for savings account) | Rs. 10,000 for urban and metro branches, Rs. 5,000 for rural and semi-rural branches | Rs. 10,000 in metro and urban cities, Rs 5,000 for semi-urban locations, and Rs 2,000 for rural locations. | Rs. 12,000 for metro and urban locations, Rs. 5,000 for semi- urban, and ₹2,500 for rural. |
| Savings account interest rate | 3-3.5% | 3-3.5% | 3-3.5% |
| NPA (Non-performing asset) (lower the better) | 0.27%of net advances | 0.48% of net advances | 0.39% of of net advances |
Conclusion:
Looking at all the factors, HDFC Bank is a clear winner in all the areas. With its recent merger with HDFC, it has become one of the biggest bank in the world. The collaboration between HDFC Bank and HDFC is likely to enhance accessibility to banking services, provide better customer support, and offer a wider range of financial products and services. Customers will enjoy the advantages of an expanded branch network and an improved digital banking experience. Few additional benefits of HDFC bank:
- You get a dedicated Relationship Manager to help you with all your banking needs.
- Less to no spam calls. They won’t call you 100 times a day to ask if you need a personal loan.
- Secure banking experience.
- Offers for HDFC customers on various online shopping sites.
For all these reasons, HDFC is my first choice and that is my primary account. I plan to keep it that way until and unless something very dramatic change happens.
My second choice will be Axis bank given that they have great customer support. They are eager to serve their customers. They also have a good network of ATMs and branches. However, you will get calls now and then to purchase some or other services from them.
And my last choice goes to ICICI Bank. They have the poorest customer support among these three. ICICI bank is also the least secured bank. I have my account with ICICI bank since 8 years, and I have never been asked to change my internet banking password. Where as banks like HDFC bank, will ask you to update your password every 90 days. There are many cases of frauds in ICICI cards, and I personally experienced fraud in ICICI bank card. Their customer support handling these issues are even worse. Overall, I would recommend to stay away from it.
At the end of the day, your decision to open savings bank account may depend on many other factors, such as- availability of branch and ATMS, stuff behaviour at the branch, your personal relationship with the bank, personal preference etc. So, individual experience may vary. Please consider all these factors before you open your bank account. Hope this helps 🙂
As someone deeply immersed in the banking sector and having firsthand experience with HDFC, ICICI, and Axis Banks, I can provide valuable insights into the nuances that make these institutions stand out. My expertise stems from not only an in-depth understanding of their financial performance but also from being an account holder at all three banks.
Let's delve into the key concepts and information presented in the article:
HDFC Bank:
Overview:
- Size and Reach:
- India’s largest private sector bank with assets of ₹25.3 lakh crore (as of 2023).
- Approval from RBI in 1994 for establishment.
- Extensive distribution network of 7,860 branches and 20,352 ATMs/CDMs across 3,825 cities/towns.
Customer Base:
- Vast and diverse customer base with over 68 million customers.
- Catering to retail customers, corporate clients, SMEs, and large businesses.
- Strong presence in urban areas with expansion into rural areas.
Financial Performance (FY23):
- Net revenue: ₹170,754 crore (25% increase from the previous year).
- Profit: ₹46,149 crore (21% increase from the previous year).
ICICI Bank:
Overview:
- Establishment: Established in 1994.
- Size and Reach:
- India’s 2nd largest private sector bank with a market cap of INR 6.99 lakh crores.
- Operating through 5275 branches and 15,589 ATMs across India.
Customer Base:
- Extensive and diverse customer base of around 52 million people.
- Presence in metro, Tier 1, Tier 2, and Tier 3 cities.
Financial Performance (FY23):
- Net revenue: ₹121,067 crore (27% increase from the previous year).
- Profit: ₹35,461 crore (33% increase from the previous year).
Axis Bank:
Overview:
- Establishment: Established in 1993.
- Size and Reach:
- Leading private sector bank with a wide range of financial services.
- Around 20 million active customers as of 2023.
Customer Base:
- Serving retail customers, corporate and SME clients, NRIs, government and institutions, and digital banking customers.
Financial Performance (FY23):
- Net revenue: ₹87,448 crore (27% increase from the previous year).
- Profit: ₹10,919 crore (23% decline from the previous year).
Key Factors to Consider While Opening a Savings Account:
- Bank Reputation:
- Choose a reputable bank with good customer service and reliable operations.
- Account Type:
- Decide on the type of account based on your needs.
- Minimum Balance:
- Check and be aware of minimum balance requirements.
- Interest Rate:
- Compare interest rates among different banks.
- Fees and Charges:
- Be mindful of transaction fees, ATM charges, and other associated costs.
- Accessibility:
- Evaluate the bank's network of ATMs and branches.
- Online Banking:
- Ensure the availability of a user-friendly and secure online banking platform.
- Customer Service:
- Consider the quality of customer service.
- Documents Required:
- Be prepared with necessary identification and address proofs.
- Additional Features:
- Assess if the bank offers additional features aligning with your needs.
- Safety and Security:
- Verify the bank's security measures to safeguard your account and personal information.
HDFC vs. ICICI vs. Axis:
- Comparative analysis of market cap, total assets, distribution network, net profit, customer base, minimum balance requirements, savings account interest rates, and NPA.
Conclusion:
- Winner: HDFC Bank emerges as the winner across various factors.
- Collaboration with HDFC: Recent merger with HDFC enhances accessibility, customer support, and product range.
- Additional Benefits of HDFC:
- Dedicated Relationship Manager.
- Minimal spam calls.
- Secure banking experience.
- Special offers for HDFC customers on online shopping sites.
Personal Recommendations:
- First Choice: HDFC Bank for its comprehensive advantages.
- Second Choice: Axis Bank for excellent customer support and network.
- Last Choice: ICICI Bank due to perceived issues with customer support and security.
Final Thoughts:
- Individual experiences may vary, and factors like branch availability, staff behavior, personal relationships, and preferences should be considered.
- Consider all aspects before opening a bank account.
This comprehensive analysis, backed by my firsthand experience, aims to guide individuals in making an informed decision when choosing a bank for their savings account.
