This article first appeared on GuruFocus .
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Profit Before Tax (Excluding Treasury):Rs.182.09 billion in Q4 FY26, up 10.1% year-on-year.
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Core Operating Profit:Rs.183.05 billion in Q4 FY26, up 5.1% year-on-year.
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Profit After Tax:Rs.137.02 billion in Q4 FY26, up 8.5% year-on-year.
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Consolidated Profit After Tax:Rs.147.55 billion in Q4 FY26, up 9% year-on-year.
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Total Deposits Growth:11.4% year-on-year as of March 31, 2026.
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Loan Portfolio Growth:15.8% year-on-year as of March 31, 2026.
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Net NPA Ratio:0.33% as of March 31, 2026.
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Net Interest Income:Rs.229.79 billion in Q4 FY26, up 8.4% year-on-year.
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Net Interest Margin:4.32% in Q4 FY26.
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Operating Expenses Increase:12% year-on-year in Q4 FY26.
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Branch Count:7,511 branches as of March 31, 2026.
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Dividend Recommended:Rs.12 per share for FY26.
Release Date: April 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ICICI Bank Ltd ( NYSE:IBN ) reported a 10.1% year-on-year growth in profit before tax, excluding treasury, for Q4 FY26.
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The bank's core operating profit increased by 5.1% year-on-year in the quarter.
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Total deposits grew by 11.4% year-on-year, indicating strong deposit growth.
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The retail loan portfolio grew by 9.5% year-on-year, showcasing robust retail lending.
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The net NPA ratio improved to 0.33% at the end of March 2026, reflecting better asset quality.
Negative Points
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The credit card portfolio declined by 5.6% year-on-year, indicating challenges in this segment.
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The bank experienced a treasury loss of Rs 1.06 billion in the quarter, impacting overall profitability.
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Operating expenses increased by 12% year-on-year, which could pressure margins.
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The cost of deposits was 4.43% in the quarter, which is relatively high.
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The provisioning coverage ratio on non-performing loans was 75.8%, which may indicate a need for higher provisions.
Q & A Highlights
Q: What is driving the growth in the mortgage segment, and how does it relate to the overall deposit growth? A: Anindya Banerjee, Group Chief Financial Officer, explained that the growth in mortgages is due to the stabilization of benchmark rates, which has allowed the bank to expand its portfolio. On the deposit side, while loan growth appears higher at 15% compared to deposit growth at 11%, on an average basis, they are closely matched. The bank is comfortable with its liquidity and CASA ratios, supporting healthy loan growth.
Q: How does ICICI Bank plan to enhance fee income growth in the coming year? A: Anindya Banerjee stated that the bank is focusing on transaction banking, trade aspects, ForEx, derivatives, and deposit account-linked fees. The cards and payment side has been slower, but with the recent pickup in loan growth, lending-linked fees are expected to improve. The bank will continue to calibrate its approach to sustain momentum.
Q: What impact has the RBI's recent foreign currency control regulation had on ICICI Bank's other income? A: Anindya Banerjee noted that the bank recorded a net treasury loss of 1.06 billion rupees, which includes the impact of mark-to-market adjustments on swaps and forwards due to the RBI's regulations.
Q: What is the outlook for ICICI Bank's growth momentum going into FY27, and how does the bank view credit costs? A: Anindya Banerjee expressed confidence in the bank's strong franchise, capital levels, and funding. While external factors like the West Asia conflict create uncertainty, the bank aims to leverage its strengths for growth. Credit costs have improved, with a guidance of below 50 basis points, reflecting stable underlying credit conditions.
Q: How is ICICI Bank addressing the decline in credit card book and profitability? A: Anindya Banerjee explained that the decline in Q3 was seasonal due to festive spending, while Q4's decline is linked to spending and revolvers. The bank focuses on profitable growth with steady customer acquisition, despite industry-wide challenges with revolver rates. The credit card business remains profitable with multiple levers for profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
