ICICI Bank Limited earnings

Management highlights

Strategic focus continues on growing profit before tax, excluding treasury, via 360-degree customer-centric approach and serving opportunities across ecosystems. Loan growth seen across various segments such as retail, rural, business banking, and domestic corporate. Credit quality details provided including net NPA ratio, gross NPA additions, recoveries, etc. P&L details discussed with net interest income, noninterest income, and operating expenses. Performance of subsidiaries like ICICI Life, ICICI General, ICICI AMC, etc., outlined.

Guidance

Looking ahead, many profit opportunities to drive risk-calibrated profitable growth and grow market share. Remain focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to shareholders. Objective to have operating expenses growth below top line growth.

Segment performance

Profit before tax, excluding treasury, grew 10.1% year-on-year (YOY) to INR 182.09 billion in Q4 and 7.1% YOY to INR 650.21 billion in FY 2026. Core operating profit increased 5.1% YOY to INR 183.05 billion in Q4 and 7.7% YOY to INR 704.01 billion in FY 2026. Profit after tax grew 8.5% YOY to INR 137.02 billion in Q4 and 6.2% YOY to INR 501.47 billion in FY 2026. Consolidated profit after tax grew 9% YOY to INR 147.55 billion in Q4 and 6.2% YOY to INR 542.08 billion in FY 2026. Total deposits grew 11.4% YOY and 8.1% sequentially at March 31, 2026. Average current and savings account deposits grew 11.3% YOY and 2.7% sequentially. Overall loan portfolio grew 15.8% YOY and 6% sequentially at March 31, 2026. Retail loan portfolio grew 9.5% YOY and 4.2% sequentially. Rural portfolio grew 25.6% YOY and 18% sequentially. Business banking portfolio grew 24.4% YOY and 7.6% sequentially. Domestic corporate portfolio grew 9% YOY and 3.1% sequentially. Net NPA ratio was 0.33% at March 31, 2026. Total provisions during the quarter were INR 0.96 billion. Provisioning coverage ratio on nonperforming loans was 75.8% at March 31, 2026. Contingency provisions were INR 131 billion. Capital position strong with CET1 ratio 16.35% and total capital adequacy 17.18% at March 31, 2026.

Risks & headwinds

Uncertainty from West Asia conflict which may bring potential sectoral and client-level impacts. Need to monitor the business banking portfolio for any potential issues arising from external events.

Analyst Q&A

• Q: On growth, specifically retail mortgages, deposits, and provisioning.

  A: Anindya Banerjee answered on mortgage growth due to benchmark settling, deposit growth being adequate and not constraining loan growth, and provisioning being low due to lower net additions to NPLs and higher recoveries.

• Q: On credit parameters, yield on advances.

  A: Answered on regularly monitoring potential sectoral and client-level impacts, and yield expected to be range-bound.

• Q: On rural loans, PSL compliance.

  A: Answered on rural loan growth drivers and PSL compliance status.

• Q: On government deposits, cost of deposit residual repricing.

  A: Answered on government SA balances being a low-teen share of SA and cost of deposit residual repricing outlook.

• Q: On growth outlook, corporate book stress, cost-to-income.

  A: Answered on growth outlook being uncertain due to evolving situation, monitoring corporate book stress early indicators, and objective to have OpEx growth below top line growth