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Summary: ICICI Bank reported strong financial and business growth for the quarter ended June 30, 2026, with profit after tax increasing 15.9% year-on-year to Rs. 148.05 billion (Rs. 14,805 crore). Profit before tax excluding treasury grew 20.9% to Rs. 189.75 billion, while the overall loan portfolio expanded 19.6% year-on-year. Deposits increased 14.0%, supported by continued growth across retail, rural, business banking and corporate segments. The bank maintained a strong capital position, with a CET-1 ratio of 16.19%.
The Print Times
Strong Profitability and Core Operating Performance
Profit before tax excluding treasury grew 20.9% year-on-year to Rs. 189.75 billion during the quarter. Core operating profit increased 15.6% year-on-year to Rs. 202.35 billion, while core operating profit excluding dividends from subsidiaries rose 18.3% to Rs. 191.25 billion.
Profit after tax increased 15.9% year-on-year to Rs. 148.05 billion, reflecting continued strength in the bank’s core business operations.
Deposits and Liquidity Remain Strong
Total deposits grew 14.0% year-on-year and 2.2% sequentially as of June 30, 2026. Average deposits also increased 14.0% year-on-year and 6.1% sequentially during the quarter.
Average current and savings account deposits grew 12.1% year-on-year and 4.7% sequentially, demonstrating continued momentum in the bank’s deposit franchise.
The bank maintained a healthy liquidity position, with its average liquidity coverage ratio at approximately 124% for the quarter.
Loan Portfolio Expands Across Key Segments
ICICI Bank’s overall loan portfolio, including international branches, grew 19.6% year-on-year and 5.0% sequentially at June 30, 2026. The retail loan portfolio increased 12.0% year-on-year and 2.7% sequentially. Including non-fund-based outstanding, retail accounted for 41.1% of the total portfolio. The rural portfolio, including gold loans, recorded particularly strong growth of 35.4% year-on-year and 6.2% sequentially. The business banking portfolio increased 28.2% year-on-year and 6.9% sequentially, while the domestic corporate portfolio grew 18.5% year-on-year and 6.9% sequentially. The domestic loan portfolio grew 18.8% year-on-year and 4.6% sequentially. The overseas loan portfolio represented 3.1% of the overall loan book at June 30, 2026.
Retail Product Performance
Within the retail segment, the mortgage portfolio grew 14.6% year-on-year and 3.2% sequentially. Personal loans increased 12.9% year-on-year and 4.0% sequentially, while commercial vehicles and equipment loans grew 12.8% year-on-year and 2.2% sequentially. Auto loans recorded growth of 3.6% year-on-year and 1.2% sequentially. In contrast, the credit card portfolio declined 1.9% year-on-year and 1.7% sequentially.
Credit Quality Remains Controlled
The bank’s net NPA ratio stood at 0.35% as of June 30, 2026, compared with 0.33% at March 31, 2026 and 0.41% a year earlier.
Gross NPA additions stood at Rs. 55.52 billion in Q1 FY2027, lower than Rs. 62.45 billion in Q1 of the previous year. The bank reported Rs. 7.06 billion of gross NPA additions from the Kisan Credit Card portfolio during the quarter.
Recoveries and upgrades from gross NPAs, excluding write-offs and sales, stood at Rs. 28.45 billion, compared with Rs. 32.11 billion in Q1 of the previous year. Consequently, net additions to gross NPAs declined to Rs. 27.07 billion from Rs. 30.34 billion a year earlier.
Gross NPA additions from retail and rural portfolios stood at Rs. 43.31 billion, while recoveries and upgrades were Rs. 22.10 billion, resulting in net additions of Rs. 21.21 billion.
The corporate and business banking portfolios recorded gross NPA additions of Rs. 12.21 billion, compared with Rs. 10.52 billion in Q1 of the previous year. Recoveries and upgrades stood at Rs. 6.35 billion, resulting in net additions of Rs. 5.86 billion. During the quarter, gross NPAs written off stood at Rs. 16.73 billion, while NPAs worth Rs. 2.39 billion were sold for cash.
Provisions and Capital Position
Total provisions during Q1 FY2027 stood at Rs. 12.60 billion, equivalent to 6.2% of core operating profit and 0.32% of average advances. The provisioning coverage ratio on non-performing loans stood at 74.7% at June 30, 2026. In addition, ICICI Bank continued to maintain contingency provisions of Rs. 131.00 billion, equivalent to approximately 0.8% of total advances. The bank’s capital position remained strong, with a CET-1 ratio of 16.19% and a total capital adequacy ratio of 16.84% as of June 30, 2026.
Net Interest Income and Margins
Net interest income increased 12.7% year-on-year and 6.1% sequentially to Rs. 243.84 billion during the quarter. The net interest margin improved to 4.36%, compared with 4.32% in the previous quarter and 4.34% in Q1 FY2026. The cost of deposits declined to 4.41%, compared with 4.43% in the previous quarter and 4.85% in Q1 of the previous year. Excluding the benefit of interest on tax refunds, the net interest margin was 4.28%, broadly stable compared with 4.27% in both the previous quarter and Q1 FY2026.
Of the bank’s total domestic loans, approximately 57% are linked to the repo rate and other external benchmarks, 13% are linked to MCLR and other older benchmarks, while the remaining 30% carry fixed interest rates. Non-interest income excluding treasury increased 16.0% year-on-year to Rs. 84.25 billion during Q1 FY2027.
Operating Expenses and Branch Expansion
Operating expenses increased 10.4% year-on-year during the quarter, compared with 11.5% growth in FY2026.
Employee expenses increased 5.5% year-on-year, primarily reflecting annual increments and promotions implemented during the first quarter of the financial year. Non-employee expenses increased 13.8% year-on-year. ICICI Bank added 97 branches during the first quarter, taking its total branch network to 7,608 branches as of June 30, 2026.
Technology expenses accounted for approximately 11.4% of operating expenses during the quarter, highlighting the bank’s continued focus on technology-led operations.
Outlook
ICICI Bank’s Q1 FY2027 performance reflects broad-based growth across deposits, lending and core operating profitability, supported by its customer-centric strategy and focus on opportunities across different ecosystems and micro-markets.
With strong capital adequacy, a 124% average liquidity coverage ratio, controlled asset quality and continued expansion across rural, business banking and corporate portfolios, the bank entered FY2027 with a strong operating and financial foundation. Mr. Sandeep Bakhshi reiterated that the bank’s strategic focus remains on sustainable growth in profit before tax excluding treasury through its 360-degree customer-centric approach.
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