New Delhi, July 20 -- The June quarter (Q1FY27) earnings of private banking heavyweights ICICI Bank and HDFC Bank show the former pulling further ahead of its larger rival on loan growth, margins and return ratios.

ICICI reported nearly 20% year-on-year loan growth to Rs.16.3 trillion, comfortably ahead of the industry's 18.6% credit growth (as of 30 June) and HDFC's 16% growth to Rs.30.4 trillion.

Its net interest margin (NIM) expanded 4 basis points sequentially to 4.36%, though primarily aided by higher interest on tax refunds. Net profit grew 16% year-on-year to Rs.14,800 crore, while return on assets (ROA) improved from 2.4% in Q4 to 2.5% in Q1.

Meanwhile, HDFC continued to grapple with the after-effects of its July 2023 merger wi...