ICICI Bank Limited Q1 FY2026 earnings call

• Strategic focus on growing profit before tax, excluding treasury via 360-degree customer-centric approach and serving opportunities across ecosystems. - Profit before tax, excluding treasury grew 11.4% year-on-year to INR 156.90 billion. - Core operating profit increased by 13.6% year-on-year to INR 175.05 billion. - Profit after tax grew by 15.5% year-on-year to INR 127.68 billion. - Details on deposit growth, loan portfolio segments (retail, rural, business banking, corporate), credit quality metrics (net NPA ratio, gross NPA additions, recoveries), P&L details (net interest income, net interest margin, noninterest income, operating expenses), and performance of subsidiaries (ICICI Life, ICICI General, ICICI AMC, etc.).

Total deposits grew by 12.8% year-on-year and were flat sequentially at June 30, 2025. Average deposits grew by 11.2% year-on-year and 3.1% sequentially; average current and savings account deposits grew by 8.7% year-on-year and 3.9% sequentially. Domestic loan portfolio grew by 12% year-on-year and 1.5% sequentially at June 30, 2025. Retail loan portfolio grew by 6.9% year-on-year and 0.5% sequentially, accounting for 43.2% of the total portfolio. Rural portfolio declined by 0.4% year-on-year and 1.5% sequentially. Business banking portfolio grew by 29.7% year-on-year and 3.7% sequentially. Domestic corporate portfolio grew by 7.5% year-on-year and declined by 1.4% sequentially. Overall loan portfolio including international branches grew by 11.5% year-on-year and 1.7% sequentially at June 30, 2025. Net NPA ratio was 0.41% at June 30, 2025 compared to 0.43% at June 30, 2024. Total provisions during the quarter were INR 18.15 billion or 10.4% of core operating profit and 0.53% of average advances. Capital position strong with CET1 ratio 16.31% and total capital adequacy ratio 16.97% at June 30, 2025.

• Looking ahead, opportunities to drive risk-calibrated profitable growth and grow market share across key segments. - Remain focused on maintaining strong balance sheet, prudent provisioning, and healthy capital levels while delivering sustainable returns to shareholders.

• Potential impact of market conditions on loan growth and margin stability. - Asset quality risks in specific segments like Kisan credit card portfolio which typically has higher NPA additions in certain quarters. - Competition affecting deposit pricing and loan growth dynamics.

Q: On margins regarding the change in method and growth revival.

A: On the margin change, the reported margin for Q4 would have been a few basis points lower, and on growth, it's too early to say as global events and monetary easing impact sentiment.

Q: On margin unwinding and credit cost.

A: There's no unwinding in Q1, and credit cost's underlying level is about 50 basis points with possible gradual normalization.

Q: On corporate creditor mix and business banking growth.

A: Decline in very high-rated corporate creditors is due to demand, pricing, and portfolio runoff; business banking growth is from distribution, process, technology, and disciplined portfolio management.

Q: On deposit cost and unsecured retail growth.

A: Deposit cost decline is from savings account rate cuts and wholesale deposit runoff; on unsecured retail, focus on personal loans and credit cards for better growth.

Q: On margins vs peers and wholesale deposits.

A: Margin comparison with peers is about lagged repricing, and wholesale deposits are trimmed as part of liquidity management and deposit cost optimization.

Q: On vehicle loans growth.

A: Vehicle loans growth slowdown is due to price competition and underlying asset class growth.