Private sector lender ICICI Bank delivered a steady performance in the March quarter of FY2026, with profit growth supported by resilient core income, improving asset quality and strong credit expansion across segments.
The bank reported an 8.5% year-on-year rise in standalone profit after tax to ₹13,702 crore, as compared to ₹ 12,630 crore in the same quarter last fiscal, reflecting a balanced combination of revenue growth and lower provisioning costs.
Core income momentum drives earnings
A key driver of the bank’s earnings was sustained growth in net interest income (NII), which rose 8.4% year-on-year to ₹22,979 crore. This was supported by healthy loan growth and stable margins, with net interest margin (NIM) holding firm at 4.32% during the quarter.
The stability in margins, despite a dynamic interest rate environment, indicates effective asset-liability management and disciplined pricing strategies.
Diversified fee income adds resilience
Non-interest income (excluding treasury) grew 5.6% year-on-year to ₹7,415 crore, led by a 7.5% increase in fee income. Retail, rural and business banking segments contributed nearly 78% of total fees, highlighting the bank’s diversified revenue mix.
This strong contribution from granular segments underslines ICICI Bank’s continued focus on expanding high-yield, customer-driven businesses.
Credit growth across segments strengthens topline
Robust loan growth further underpinned performance, with total advances rising 15.8% year-on-year to ₹15.54 lakh crore. Growth was broad-based : business banking expanded 24.4%, rural portfolio grew 25.6%, retail loans increased 9.5% and corporate portfolio registered 9.3% growth.
The diversified growth profile reflects strong demand across economic segments and the bank’s calibrated approach to risk.
Deposit traction and network expansion support growth
Deposits grew 11.4% year-on-year to ₹17.95 lakh crore, while CASA deposits maintained healthy momentum.
The addition of 528 branches during FY2026, including 126 in the March quarter, took the bank’s network to 7,511 branches, strengthening its distribution footprint and supporting long-term growth.
Asset quality improvement reduces credit costs
A major positive for the quarter was the sharp decline in provisions, which fell to ₹96 crore from ₹891 crore a year ago. This was driven by improved recoveries, upgrades and lower incremental stress.
Gross NPA ratio improved to 1.40%, while net NPA declined to 0.33%, reflecting continued strengthening of the loan book. Lower slippages and controlled net additions to NPAs further reinforced the asset quality trajectory.
Operating costs rise amid expansion
Operating expenses increased 12% year-on-year to ₹12,089 crore, largely due to investments in branch expansion, technology and business growth.
Additionally, the bank reported a modest treasury loss of ₹106 crore, compared to a gain in the year-ago period, which slightly weighed on overall income growth.
Strong capital position and shareholder returns
ICICI Bank maintained a strong capital adequacy ratio of 17.18%, well above regulatory requirements, providing ample headroom for future growth.
The board recommended a dividend of ₹12 per share, reflecting confidence in the bank’s financial strength and consistent earnings trajectory.
Balanced performance amid evolving environment
Overall, ICICI Bank’s March quarter performance was anchored by strong core income growth, disciplined margin management and a marked improvement in asset quality. While operating expenses and treasury movements posed minor headwinds, the bank’s diversified growth engines and robust balance sheet position it well for sustained performance in the coming quarters.