ICICI Bank — Q4 FY25 earnings call

Call held 19 Apr 2025

Management summary

ICICI Bank reported a strong Q4 FY25, marked by robust growth in net interest income and profit after tax, alongside healthy deposit and loan portfolio expansion. The Bank maintained a stable asset quality with an improved Net NPA ratio and strong capital adequacy. Management emphasized a risk-calibrated growth strategy, customer-centric approach, and continuous monitoring of market dynamics.

Highlights

  • Net interest income increased by 11.0% year-on-year to ₹21,193 crore in Q4-2025.

  • Net interest margin (NIM) was 4.41% in Q4-2025, with the full-year FY2025 NIM at 4.32%.

  • Profit after tax grew by 18.0% year-on-year to ₹12,630 crore in Q4-2025, and 15.5% to ₹47,227 crore for FY2025.

  • Consolidated profit after tax grew by 15.7% year-on-year to ₹13,502 crore in Q4-2025.

  • Total period-end deposits increased by 14.0% year-on-year to ₹16,10,348 crore at March 31, 2025.

  • The domestic loan portfolio grew by 13.9% year-on-year at March 31, 2025.

  • Net NPA ratio improved to 0.39% at March 31, 2025, from 0.42% in the previous quarter.

  • The Bank's CET-1 ratio stood strong at 15.94% at March 31, 2025, after accounting for the proposed dividend of ₹11 per share for FY2025.

What they filed

Q1 FY27: revenue up 6.4%, net profit up 12.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue46,326 47,037 48,387 49,080 48,181 +4%48,364 +3%49,594 +2%52,241 +6%
Net profit13,906 13,847 14,354 14,456 14,318 +3%13,481 −3%15,681 +9%16,276 +13%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Growth

  • Loan and Deposit Growth Growth · ongoing · Medium confidence largely move in tandem
    So, Kshipra, both these growths have to grow in tandem. If you see, we grew our loan portfolio by 13.9% for the year against the Bank, about 11%. And while we will see competitive intensity in pricing, but we do expect these growths will be a function of overall market. And our loan growth and deposit growth have to largely move in tandem.

    — Sandeep Batra

Lending Rates

  • Repo Rate Cut Transmission (Lending Side) Lending Rates · ongoing · High confidence within a period of 3 to 6 months. Largely 3 months
    On the lending side, it is just fairly automatic. It's the regulation around it. Transmission happens within a period of 3 to 6 months. Largely 3 months, actually.

    — Sandeep Batra

Branch Network

  • Number of Branches Added Branch Network · next year · Medium confidence similar number of branches

    From a little over 400 branches today

    So during the last year, we added a little over 400 branches. We do expect to add a similar number of branches during the next year.

    — Sandeep Batra

NIM

  • Net Interest Margin (NIM) NIM · full year · High confidence 4.3%
    Yes, I think the larger number is really on account of the day count convention. So, as we had said, I think, the margin number to focus on in our mind is really the 4.3% for the full year. That would be a more representative number.

    — Anindya Banerjee

Asset Quality

  • NPL Formation (Unsecured) Asset Quality · another couple of quarters · Low confidence come down
    We would hope for it to come down, but let us wait for that to happen. Maybe it will take another couple of quarters.

    — Anindya Banerjee

Loan Growth

  • Unsecured Portfolio Growth Loan Growth · as it stabilises · Low confidence happy to grow that portfolio
    But overall, we see the unsecured portfolio stabilising. And as it does, we'll be happy to grow that portfolio.

    — Sandeep Batra

Capital Management

  • Capital Levels Capital Management · ongoing · High confidence not out of line with most of our peers
    And I think our capital levels are not out of line with most of our peers in that context.

    — Anindya Banerjee

Compliance

  • PSL Requirement Compliance · ongoing · High confidence meet our overall PSL requirement
    So, I think it's pretty similar to what we have seen in past quarters. We meet our overall PSL requirement. We also meet our MSME requirement.

    — Anindya Banerjee

2 min read

Detailed narrative

ICICI Bank delivered a robust performance in Q4 FY25 and for the full financial year, demonstrating resilience amidst a dynamic economic environment. For Q4 FY25, the Bank reported a net interest income of ₹21,193 crore, marking an 11.0% year-on-year growth. The net interest margin (NIM) stood at 4.41% for the quarter, with the full-year FY25 NIM at 4.32%. Profit after tax for the quarter surged by 18.0% year-on-year to ₹12,630 crore, contributing to a full-year profit after tax of ₹47,227 crore, up 15.5% from FY24. Consolidated profit after tax also saw healthy growth, reaching ₹13,502 crore in Q4 FY25, a 15.7% increase year-on-year.

The Bank's deposit and loan portfolios exhibited strong growth. Total period-end deposits grew by 14.0% year-on-year to ₹16,10,348 crore at March 31, 2025, with average deposits increasing by 11.4% year-on-year. The domestic loan portfolio expanded by 13.9% year-on-year, driven by a 33.7% growth in the business banking portfolio and an 11.9% growth in the domestic corporate portfolio. Retail loans, while moderating, still grew by 8.9% year-on-year, constituting 43.8% of the total portfolio. The Bank continued its network expansion, adding 241 branches in Q4 FY25 and 460 over the last 12 months, bringing the total to 6,983 branches.

Asset quality remained strong, with the net NPA ratio improving to 0.39% at March 31, 2025, from 0.42% in the previous quarter. Gross NPA additions for Q4 FY25 were ₹5,142 crore, with net additions to gross NPAs at ₹1,325 crore. The provisioning coverage ratio on non-performing loans was a healthy 76.2%. The Bank also maintained substantial contingency provisions of ₹13,100 crore. Capital adequacy remained robust, with a CET-1 ratio of 15.94% and a total capital adequacy ratio of 16.55% after accounting for the proposed dividend of ₹11 per share for FY25.

Management, led by Sandeep Batra and Anindya Banerjee, expressed a bullish outlook, emphasizing a risk-calibrated growth strategy focused on micromarkets and ecosystems. They highlighted the stability of the unsecured loan portfolio and the comfort with current credit quality. While acknowledging potential impacts from repo rate cuts on margins, they expressed confidence in leveraging the Bank's franchise and various levers to optimize risk-calibrated profits. The Bank expects loan and deposit growth to move in tandem and plans to add a similar number of branches in the next year as in the last. The overall tone was confident, backed by detailed financial figures and a clear strategic direction, despite some questions on specific portfolio breakdowns being deferred.

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