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The market asks roughly as much of Axis Bank as of ICICI Bank.
At current prices, buyers of Axis Bank are assuming about 14.5% return on equity against 14.3% in its own record; for ICICI Bank it is 17.0% against 17.3%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: ICICI Bank is worth about 2.7 times Axis Bank on the stock market.
- Record: On revenue the two have grown at much the same pace: Axis Bank compounded at about 13% a year (FY2019–FY2026) and ICICI Bank at about 13% (FY2018–FY2026).
- What to watch: closing the return gap at Axis Bank; sustaining return on equity at ICICI Bank.
| Axis Bank | ICICI Bank | |
|---|---|---|
| Price | ₹1,343 | ₹1,590 |
| Market cap | ₹4.18L Cr | ₹11.42L Cr |
| P/E | 14.0 | 19.3 |
| P/B | 1.96 | 3.01 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
From UTI Bank to a top-three private lender
Axis Bank started life in 1993 as UTI Bank, set up by the Unit Trust of India and other state-owned institutions, and took its current name in 2007. It lends to large corporates, small businesses and households, and runs one of the largest credit-card businesses in India.
From clean-up to one of the highest-return big banks
ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market. Its group includes a life insurer (ICICI Prudential Life), a general insurer (ICICI Lombard) and a stake in the ICICI Prudential asset-management business.
02The records side by side
On revenue the two have grown at much the same pace: Axis Bank compounded at about 13% a year (FY2019–FY2026) and ICICI Bank at about 13% (FY2018–FY2026). By revenue, ICICI Bank is about 1.9 times the size of Axis Bank. Axis Bank kept 16.3% of revenue as net profit in FY2026; ICICI Bank kept 18.5% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Axis Bank · ICICI Bank.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Closing the return gapAxis has earned less on its equity than the two largest private banks. How much of that gap closes is the heart of its valuation.
- Deposit franchiseGrowing low-cost deposits is the cheapest way to lift margins.
- Sustaining return on equityThe price leans on ICICI holding returns well above its cost of equity. Each point of return it sustains — or loses — moves the value sharply.
- Retail and unsecured growthFaster-growing retail loans earn more but carry more credit risk when the cycle turns.
05What could go wrong
- Corporate creditAxis has had a more volatile corporate-loan record than its closest peers.
- Unsecured lendingCards and personal loans are the first place a consumer slowdown shows up.
- The credit cycleUnsecured personal loans and credit cards have grown quickly across the industry; a downturn there would show up in provisions first.
- Margin pressureRate cuts can compress lending margins faster than deposit costs fall.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Axis Bank or ICICI Bank better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Axis Bank trades at 14.0 times earnings and 1.96 times book value, and ICICI Bank at 19.3 times earnings and 3.01 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Axis Bank and ICICI Bank?
Axis Bank started life in 1993 as UTI Bank, set up by the Unit Trust of India and other state-owned institutions, and took its current name in 2007. ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market.
Are Axis Bank and ICICI Bank valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for Axis Bank and ICICI Bank?
Worked backwards from the share price, Axis Bank needs about 14.5% return on equity and ICICI Bank about 17.0% return on equity, against 14.3% and 17.3% in their own records.