ICICI Bank vs HDFC Bank : Whither from here?
With Corporate revenues down 25% and Net Interest Income down 2% the bank continues to grapple with a changed milieu after the chapter was declared over earlier in 2008. The bank continues to move from quarter to quarter managing lowering down market expectations, shouting down growth as lack of discipline in the ranks is seen as the overall market perception of the bank. Seemingly well poised to recover, the bank yet again promises a miniscule 15% corporate credit growth.
Subsuming bullish expectations midway in the July series, the business of the bank refused to play catch up with the markets and is trying to recover its poise after an embattled 2008 and 2009. The new control structure at the bank is not a satisfactory answer for the problems at the bank’s courtship with nationalism in guise of RBI policy and indisciplined retail outbursts of growth at the expense of operational discipline.
RBI has also fined it for a nominal amount for violating KYC guidelines in new accounts and existing account updates. While HSBC has quit Investment Banking in India earlier, ICICI Bank is well on its way to either shape up or ship out, probably unable to satisfy larger relationships or bring value to syndicates for such arrangements and the same has to be investigated.