SBI vs ICICI Bank: Which is Better?
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SBI vs ICICI Bank: Which is Better?

You save a lot of money and put in a lot of work, but you need help determining where to keep it. It is only possible to retain some of your hard-earned savings at home; opening a bank account is your only option. You might be surprised to hear that banks where you have accounts allow you to invest in their business.

This blog post will compare the State Bank of India (SBI) and ICICI Bank.

SBI Overview

State Bank of India is the largest public sector bank in India and is a titan in the Indian banking landscape with a 1/4th share in the market. SBI is headquartered in Mumbai and holds a rich heritage of over 200 years.

The roots of SBI trace back to 1806 with the establishment of the Bank of Calcutta, the first joint stock bank in British India. Three separate presidency banks – Bank of Bengal, Bank of Bombay, and Bank of Madras emerged across British India. In the year 1921, the three presidential banks merged to form the Imperial Bank of India.

In the year 1955, the government of India nationalized the Imperial Bank of India and renamed it as State Bank of India. SBI later acquired various state-associated banks and commercial banks.

SBI has played an important role in bringing banking services to rural areas. Currently, SBI holds a strong distribution network of 22,405 branches and 65,627 ATMs.

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ICICI Bank Overview

ICICI Bank is among the biggest banks in India’s private sector. The government of India established the Industrial Credit and Investment Corporation of India (ICICI) on 5 January 1955. As a division of ICICI Limited, ICICI Bank was founded in 1994. It made history by being the first Indian bank and firm to list on the New York Stock Exchange. ICICI and ICICI Bank combined to form a new financial organization to increase business efficiency. Following accusations against Chanda Kochhar, the managing director of ICICI Bank, in 2018 about inappropriate lending practices, Sandeep Bakhshi assumed the role of managing director. It was the first bank to provide contactless credit and debit cards. 

Company’s Comparative Study

ParticularSBIICICI Bank
Current Share PriceINR 816INR 1,226
Market Capitalization (Crores)7,27,8918,63,981
52 Week High PriceINR 912INR 1,258
52-Week Low PriceINR 543INR 899
FIIs Holdings (%)11.1545.48
DIIs Holdings (%)23.6444.97
Book Value per ShareINR 465INR 365
PE Ratio (x)9.9919.1
(Data as of 27 August 2024)

Financial Statements Comparison

Income Statement Comparison (FY 2024)

ParticularSBIICICI Bank
Interest Income4,39,1881,59,515
Total Income5,94,5742,36,037
Total Expenditure4,95,5431,71,890
Net Profit68,22445,007
(The figures mentioned above are in INR crores unless stated otherwise)
Income Statement of SBI vs ICICI Bank

Balance Sheet Comparison (FY 2024)

ParticularSBIICICI Bank
Deposits49,66,53714,43,580
Total Capital & Liabilities67,33,77923,64,063
Advances37,84,27312,60,776
(The figures mentioned above are in INR crores unless stated otherwise)
Balance Sheet of SBI vs ICICI Bank

Cash Flow Statement Comparison (FY 2024)

ParticularSBIICICI Bank
Cash Flow from Operating Activities21,6321,57,284
Cash Flow from Investing Activities-4,251-1,45,931
Cash Flow from Financing Activities-9,89613,765
(The figures mentioned above are in INR crores unless stated otherwise)
Cash Flow Statement of SBI vs ICICI Bank

Key Performance Indicators

ParticularSBIICICI Bank
Net Interest Margin (%)2.663.61
Net Profit Margin (%)15.5128.21
ROE (%)17.3117.74
Capital Adequacy Ratios (%)14.2816.33
(all the above data is of the year ended March 2024)

Conclusion

The comparison of SBI and ICICI Bank presented above leads us to conclude that while SBI has more net profit, ICICI Bank has a higher net profit margin. Although every bank has something special to offer, we always advise speaking with an investment expert before making investment decisions.

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Frequently Asked Questions (FAQs)

  1. Which bank has a larger market capitalization: SBI or ICICI Bank?

    ICICI Bank has a larger market capitalization than SBI as of 27 August 2024.

  2. Which bank is more profitable: SBI or ICICI Bank?

    SBI has a net profit of INR 68,244 crores compared to INR 45,007 crores for ICICI Bank for FY 2024.

  3. Who is the CEO of ICICI Bank?

    Sandeep Bakhshi is the MD and CEO of ICICI Bank.

  4. What is the full form of ICICI Bank?

    ICICI stands for Industrial Credit and Investment Corporation of India.

  5. How was the State Bank of India formed?

    State Bank of India was established in 1955 after the government of India nationalized the Imperial Bank of India and renamed it as State Bank of India.

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