Detailed Narrative
Strong Profitability and Core Operating Performance
ICICI Bank delivered a robust financial performance in Q1 FY27, with profit after tax growing by 15.9% year-on-year to 148.05 billion Rupees. The consolidated profit after tax also saw a healthy increase of 13.9% year-on-year, reaching 154.40 billion Rupees. This was underpinned by a 20.9% year-on-year growth in profit before tax excluding treasury, which stood at 189.75 billion Rupees, and a 15.6% rise in core operating profit to 202.35 billion Rupees.
Broad-based Loan and Deposit Growth
The bank demonstrated strong growth across its loan book, with the overall loan portfolio expanding by 19.6% year-on-year and 5.0% sequentially. This growth was broad-based, with the retail loan portfolio growing by 12.0% year-on-year, rural portfolio by 35.4%, business banking by 28.2%, and domestic corporate by 18.5%. On the liabilities side, total deposits grew by 14.0% year-on-year and 2.2% sequentially, while average current and savings account deposits increased by 12.1% year-on-year.
Stable Asset Quality and Robust Provisions
Asset quality remained stable, with the net NPA ratio at 0.35% as of June 30, 2026, an improvement from 0.41% in Q1 last year. Net additions to gross NPAs were 27.07 billion Rupees. The bank maintained a strong provisioning coverage ratio of 74.7% on non-performing loans and held substantial contingency provisions of 131.00 billion Rupees, equivalent to 0.8% of total advances, indicating a prudent approach to risk management.
Healthy Net Interest Income and Margins
Net interest income (NII) increased by 12.7% year-on-year and 6.1% sequentially to 243.84 billion Rupees. The net interest margin (NIM) for the quarter was 4.36%, an increase from 4.32% in the previous quarter and 4.34% in Q1 last year. Excluding the 8 basis points benefit from interest on tax refund, the NIM would have been 4.28%. Management indicated that NIMs are expected to remain range-bound, assuming no significant policy rate movements.
Diversified Non-Interest Income Growth
Non-interest income, excluding treasury, grew by 16.0% year-on-year to 84.25 billion Rupees. Fee income was a significant contributor, increasing by 23.5% year-on-year to 72.86 billion Rupees, with retail, rural, and business banking customers accounting for 72% of total fees. This growth was attributed to a favorable base effect from the prior year and broad-based business momentum across various fee components like loan processing, transaction banking, and forex.
Subsidiary Performance Overview
Most subsidiaries reported positive results, with ICICI Life's profit after tax growing by 27.8% to 3.86 billion Rupees and ICICI AMC's PAT increasing by 23.1% to 9.65 billion Rupees. However, ICICI General's profit after tax declined significantly by 46.1% to 4.03 billion Rupees, primarily due to an increase in reserves following a judicial pronouncement, which also led to an elevated combined ratio of 107.2%.