• Profit before tax excluding treasury grew 10.1% YoY to INR 182.09 billion in Q4 and 7.1% YoY to INR 650.21 billion for FY2026
• Overall loan portfolio grew 15.8% YoY and 6% sequentially, with retail portfolio up 9.5% YoY, rural portfolio up 25.6% YoY, and business banking up 24.4% YoY
• Net NPA ratio improved to 0.33% from 0.37% in Q3 and 0.39% in Q4 FY2025, with provisioning coverage ratio at 75.8%
• Total provisions were only INR 0.96 billion (0.5% of core operating profit and 0.03% of average advances) in Q4, reflecting strong asset quality
• Capital position strengthened with CET1 ratio at 16.35% and total CAR at 17.18%, with board recommending INR 12 per share dividend
• Average LCR for the quarter at 126%, indicating comfortable liquidity position
• Mortgage portfolio accelerated with 13.2% YoY and 4.7% sequential growth as benchmark rates stabilized
• Branch network expanded by 528 branches in FY2026 to total 7,511 branches, continuing franchise expansion

ICICI Bank delivered solid Q4 FY2026 results with PAT growing 8.5% YoY to INR 137.02 billion, driven by strong loan growth of 15.8% YoY and improving asset quality with net NPA at 0.33%. Management expressed confidence in sustainable growth backed by strong capital (CET1 16.35%), healthy liquidity (LCR 126%), and contained credit costs (38 bps for FY2026), though acknowledged monitoring external uncertainties from geopolitical conflicts.

ICICI Bank reported consolidated PAT growth of 9.3% YoY to INR 147.55 billion in Q4 FY2026 and 6.2% YoY to INR 542.08 billion for the full year. Net interest income increased 8.4% YoY to INR 229.79 billion in Q4, with NIM stable at 4.32% (same as previous quarter and full year FY2025). Cost of deposits improved to 4.43% from 4.55% in Q3. Non-interest income excluding treasury grew 5.6% YoY to INR 74.15 billion, with fee income up 7.5% YoY to INR 67.79 billion (78% from retail, rural and business banking customers). Operating expenses increased 12% YoY in Q4 and 11.5% for FY2026, driven by branch expansion, labor code impacts, and market-linked employee benefit provisions. Credit cost for FY2026 was 38 bps (below 50 bps adjusted for one-time KCC provision and corporate recoveries). Deposit growth was 11.4% YoY with average CASA deposits up 11.3% YoY. Key subsidiaries performed well: ICICI Life PAT grew to INR 16 billion in FY2026, ICICI General to INR 27.72 billion, and ICICI AMC quarterly PAT at INR 7.63 billion.

Management demonstrated strong confidence in the bank's growth trajectory, emphasizing their 360-degree customer-centric approach and franchise strength. CEO Sandeep Bakhshi highlighted the focus on growing profit before tax excluding treasury while maintaining strong governance and operational resilience. CFO Anindya stressed the bank's comfortable position on capital, liquidity and funding, stating they are well-positioned to leverage these strengths for business growth. Management acknowledged external uncertainties from the West Asia conflict since March but emphasized the resilience of both corporate and retail portfolios, noting that banks have been sensible about credit selection. They expressed particular confidence in the corporate sector's strength and funding levels. On mortgage growth acceleration, management noted this was a deliberate strategy after previously holding back due to benchmark risk, but now with rates stabilizing, they are actively growing this segment. The tone was cautiously optimistic - confident in internal execution and portfolio quality while acknowledging the need to monitor external macro developments. Management repeatedly emphasized their focus on risk-calibrated profitable growth rather than targeting specific growth numbers.

Several challenges were acknowledged during the call. The West Asia conflict since March 2025 has created uncertainty in the economic outlook, requiring closer monitoring of sectoral and client-level impacts, particularly in the business banking portfolio which has grown rapidly. Management noted they are monitoring potential impacts on production, working capital utilization and overall demand conditions, though it's too early to make generalizations. The credit card business showed contraction for the second consecutive quarter (down 5.6% YoY and 1.3% sequentially), with declining revolver rates impacting profitability despite it remaining a profitable business. Fee income growth has been slower, particularly on cards and payments side. OpEx growth of 11.5-12% exceeded revenue growth, driven by priority sector compliance costs, labor code impacts, and employee remuneration increases. Government deposit balances in low teens of total deposits have seen some rundown, requiring focus on growing other customer segments. The bank continues to hold INR 12.83 billion in additional standard asset provisions as directed by RBI for agricultural priority sector portfolio, with work ongoing to bring it into conformity. Small and marginal farmer (SMF) segment shows continued shortfall in priority sector lending compliance. Treasury operations recorded a loss of INR 1.06 billion in Q4, impacted by market movements and FX net open position capping regulations. Technology expenses at 11% of operating expenses reflect ongoing digital transformation costs.

Revenue Outlook: Management expects NIMs to remain range-bound, unlikely to move up but broadly stable in current range. They declined to provide specific loan growth guidance but emphasized focus on leveraging strong franchise, capital and liquidity to grow business within risk parameters

Margin Outlook: NIM expected to remain range-bound around 4.32% level, with some residual deposit repricing benefit but offset by competitive dynamics and repo rate cuts impact

Key Targets:

• OpEx growth targeted below top-line growth to deliver positive jaws
• Credit cost expected to remain contained, with guidance of sub-50 bps (excluding one-time items)
• Dividend of INR 12 per share for FY2026 subject to approvals
• Continued focus on growing PBT excluding treasury as key metric
• Maintaining strong capital levels with CET1 above 16%

The Q&A session revealed analysts were primarily focused on three themes: (1) understanding the sustainability of strong loan growth, particularly the mortgage acceleration and whether deposit growth could support it, (2) assessing the very low provisioning this quarter and credit cost outlook given expectations for normalization, and (3) gauging management's view on external risks from the geopolitical crisis and any impact on growth or credit quality. Management responded confidently, emphasizing their strong capital and liquidity position as enablers for continued growth, clarifying that deposit-loan growth mismatch was a period-end issue not reflected in averages, and explaining the low provisions as structural improvement in asset quality rather than one-time factors. On the geopolitical situation, management acknowledged uncertainty but emphasized portfolio resilience and stated they would monitor and calibrate as needed rather than preemptively tightening. Analysts also probed on specific segments like credit cards (showing contraction), fee income growth (slower than expected), and OpEx trends (running ahead of revenue growth). Management's responses were measured and data-driven, avoiding specific forward guidance on growth while emphasizing their focus on risk-calibrated profitable growth. The tone suggested confidence in the franchise and portfolio quality, pragmatism about external uncertainties, and commitment to maintaining strong capital and provisioning buffers. Questions on priority sector compliance, government deposits, and subsidiary performance indicated analysts conducting detailed portfolio reviews. Overall, management successfully conveyed that despite some external uncertainties and specific product challenges, the bank's fundamentals remain strong with improving asset quality, comfortable capital/liquidity, and multiple growth drivers across retail, rural, and corporate segments.