FILE PHOTO: FILE PHOTO: ICICI bank | Photo Credit: FRANCIS MASCARENHAS

ICICI Bank reported an 8.5 per cent increase in net profit for the March quarter, supported by stable margins, broad-based loan growth and lower provisions.

The private lender’s net profit for the fourth quarter came in at ₹13,701.7 crore, while net interest income was 8.4 per cent higher on year at ₹22,979 crore.

Core operating profit grew by 5.1 per cent on year to ₹ 18,305 crore reflecting continued strength in the bank’s core lending and fee businesses, while net interest margin was stable at 4.32 per cent, though Executive Director Sandeep Batra indicated that NIMs would have limited upside ahead. “We do expect NIMs to be range-bound in FY27,” he said.

The bank’s asset quality strengthened during the quarter, with provisions falling steeply to ₹96 crore from ₹890.7 crore in the year ago period, aided by higher recoveries and write-backs. Both net NPA and gross NPA ratios saw a decline at the end of March from December-end levels.

The bank said it continued to hold a contingency buffer of ₹13,100 crore.

There was a treasury loss of ₹ 106 crore in the quarter compared to loss of ₹ 157 crore in Q3 and gain of ₹ 239 crore in Q4 of FY25.

Batra said the treasury loss reflected the impact of the widening of spreads post the guidelines by the Reserve Bank of India on reducing rupee open positions in the onshore market. “Of course the bank had some open positions in the onshore market which were required to be reduced as per RBI guidelines.”

Loans and deposits

Loan growth remained healthy at about 15.8 per cent year-on-year to ₹15.5 lakh crore, driven by momentum across segments including business banking, retail mortgages and rural portfolios. Management described the expansion as “all-round growth,” underpinned by improving economic activity and distribution reach.

The retail loan portfolio, accounting for half of the total, grew by 9.5 per cent on-year and 4.2 per cent sequentially.

However, deposit growth lagged at around 11–12 per cent, creating a gap with credit expansion. The bank said this divergence is manageable, noting that “deposit and credit growth have to move in tandem over time,” while adding that it has sufficient liquidity and may tap borrowings selectively if needed.

At the end of March deposits were at ₹17.9 lakh crore, with average current and savings account (CASA) deposits up by 11.3 per cent on-year and 2.7 per cent sequentially in the quarter.

Growth outlook

The bank was monitoring the developments in West Asia, but Batra said that it was too early to assess the impact, “where forecast validity is not even a day at this point.”

While no stress had been observed in the loan book so far, he said, “We will continue to monitor these indicators. The impact on economic growth and potential trade demand will depend on the duration of the conflict. Of course, even RBI has mentioned that there is some amount of uncertainty on account of supply shocks.”

The bank also approved annual renewal of fund raising limits via issue of debt securities in the domestic markets up to ₹25,000 crore and up to $1.5 billion in the overseas markets.

The board also declared a dividend of ₹12 per share.

Published on April 18, 2026