ICICI Bank Limited

ICICI Bank reported PBT excluding treasury of INR 189.75 billion, up 20.9% YoY; core operating profit was INR 202.35 billion, up 15.6% YoY; core operating profit excluding dividend from subsidiaries was INR 191.25 billion, up 18.3% YoY; and PAT was INR 148.05 billion, up 15.9% YoY. Net interest income increased 12.7% YoY and 6.1% sequentially to INR 243.84 billion, while NIM was 4.36% versus 4.32% in the previous quarter and 4.34% in Q1 of last year. Total deposits grew 14% YoY and 2.2% sequentially; average deposits grew 14% YoY and 6.1% sequentially; and the loan book grew 19.6% YoY and 5% sequentially. Net NPA ratio was 0.35% versus 0.33% in March 2026 and 0.41% in June 2025; gross NPA additions were INR 55.52 billion and net additions were INR 27.07 billion. Total provisions were INR 12.60 billion, or 6.2% of core operating profit and 0.32% of average advances; contingency provision stood at INR 131 billion, and CET1 was 16.19% with total capital adequacy ratio of 16.84%. Forward-looking commentary was that loan growth momentum remains strong, NIMs should stay range bound under current conditions, FCNR deposit mobilization is still early, and ECL transition impact is expected to be absorbed by provisioning buffers.

Sandeep Bakhshi framed the quarter around ICICI Bank’s strategy of growing profit before tax, excluding treasury, through a “360-degree customer-centric approach” across ecosystems and micro markets. He highlighted strong growth across deposits, loans, and profitability while emphasizing a strong balance sheet, prudent provisioning, and healthy capital. His tone was confident and upbeat, with a clear focus on sustainable and predictable returns rather than aggressive risk-taking.

Anindya Banerjee detailed broad-based operating strength: NII rose to INR 243.84 billion, NIM was 4.36%, fee income excluding treasury increased 16% YoY to INR 84.25 billion, and operating expenses rose 10.4% YoY. He noted provisions of INR 12.60 billion versus INR 18.15 billion a year ago, a contingency buffer of INR 131 billion, and a total provision pool of INR 229.63 billion excluding specific provisions on NPAs. He also flagged that FCNR deposits could be cost-effective at an all-in cost of roughly 630–640 bps after hedging, but may create some NIM pressure as the overseas balance sheet expands; on ECL, he said net worth impact should be absorbed by provisioning buffers, while recurring credit costs will likely rise across the sector.

Analysts focused on whether the current loan growth pace is sustainable, what FCNR mobilization means for margin/profitability, and whether the strong fee growth was repeatable. Management said system loan growth has picked up over the last few quarters, momentum remains strong, and FCNR mobilization is still early with no formal target; they also said the scheme should be competitive versus wholesale lending rates. On margins, management said NIMs should remain range bound under current conditions, but FCNR-driven balance sheet expansion could create some pressure over time. On asset quality, management said agricultural remediation is underway and being validated before any write-back of provisions, and on ECL they expect the transition impact to be absorbed by buffers.