ICICI Bank has announced a robust 9.28 per cent surge in its consolidated net profit to Rs 14,755 crore for the March quarter of FY26, primarily propelled by a substantial nearly 90 per cent reduction in provisioning, showcasing strong financial performance amidst global uncertainties.
Photograph: Francis Mascarenhas/Reuters
Key Points
- ICICI Bank’s consolidated net profit for the March quarter of FY26 rose by 9.28 per cent to Rs 14,755 crore, largely due to a significant 90 per cent drop in provisioning.
- On a standalone basis, the bank’s net profit increased by 8.5 per cent to Rs 13,702 crore compared to the previous year.
- Core net-interest income grew by 8.4 per cent to Rs 22,979 crore, supported by a 15 per cent asset growth and a net interest margin of 4.32 per cent.
- The gross non-performing assets (NPA) ratio improved to 1.40 per cent from 1.67 per cent in the year-ago period, indicating better asset quality.
- The bank’s executive director, Sandeep Batra, highlighted healthy momentum in the economy driving asset growth but expressed caution due to geopolitical developments in West Asia, refraining from providing future guidance.
ICICI Bank on Saturday reported a 9.28 per cent rise in its consolidated net profit to Rs 14,755 crore for the March quarter, helped by a nearly 90 per cent drop in provisioning.
On a standalone basis, the second-largest private sector lender’s net profit increased 8.5 per cent to Rs 13,702 crore compared to Rs 12,630 crore in the year-ago period.
Financial Performance Highlights
For the recently ended fiscal year 2025-26, its post-tax profit increased 6.2 per cent to Rs 50,147 crore from Rs 47,227 crore in FY25.
In the reporting quarter, the bank posted an 8.4 per cent increase in core net-interest income at Rs 22,979 crore following a healthy 15 per cent growth in assets and a slight expansion in net interest margin at 4.32 per cent.
The bank’s executive director Sandeep Batra said it has been a well-rounded asset growth on the back of healthy momentum in the economy, but added that the ongoing troubles because of the West Asia conflict make it difficult to share the outlook.
“As the economy continues to grow, we do have the liquidity and the capital to support our balance sheet growth.
“At the same time, we are mindful of the developments on the geopolitical side,” he said, adding that the bank sees “reasonable opportunities” to grow within its risk framework.
The non-interest income, excluding treasury, increased 5.6 per cent to Rs 7,415 crore, and included the impact of a treasury loss of Rs 106 crore.
The impact due to the Reserve Bank’s recent measures to curtail excessive speculation on the rupee in the aftermath of a heavy depreciation is included in the treasury losses, he said.
Its operating expenses rose 12 per cent to Rs 12,089 crore for the reporting quarter.
Asset Quality and Provisions
From an asset quality perspective, the gross non-performing assets ratio improved to 1.40 per cent from 1.53 per cent in December and 1.67 per cent in the year-ago period.
The gross slippages came at Rs 4,242 crore.
Its provisions fell to Rs 96.16 crore in the March quarter from Rs 891 crore in the year-ago period and Rs 2,556 crore in the December quarter.
Batra said the Rs 13,100 crore set aside as contingency provision continues to remain untouched, and attributed the decline in the provisions in the reporting quarter to improvements in asset quality and higher write-backs.
Normalised for the one-time impact, the credit costs for FY26 stood at 0.50 per cent, but the management refrained from giving any guidance due to the West Asia conflict.
Credit Growth and Capital Adequacy
The credit growth is driven by business banking, a rise by over 24 per cent, and the rural portfolio, which grew by 25 per cent, Batra said, adding that the contribution of retail has come down to 41 per cent now.
Domestic corporate loans grew by over 9 per cent, and their share is now down to 20 per cent of the loan book, he said, adding that there is a scope for the same to inch up.
The bank’s overall capital adequacy stood at 17.18 per cent as of March 31, 2026, and included a core buffer of 16.35 per cent.
Its board has declared a final dividend of Rs 12 per share for FY26, Batra said.
