ICICIBANKNSEOctober 24, 2025

ICICI Bank Limited

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20analyst exchanges

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Key numbers — 40 extracted

7.4%

First of all on profit and capital A. Profit and capital 1. Net interest income increased by 7.4% year-on-year to ₹21,529 crore in Q2- 2026 2. Net interest margin was 4.30% in Q2-2026 compared t

₹21,529 crore

ofit and capital A. Profit and capital 1. Net interest income increased by 7.4% year-on-year to ₹21,529 crore in Q2- 2026 2. Net interest margin was 4.30% in Q2-2026 compared to 4.34% in Q1-2026 3. Fee inc

4.30%

st income increased by 7.4% year-on-year to ₹21,529 crore in Q2- 2026 2. Net interest margin was 4.30% in Q2-2026 compared to 4.34% in Q1-2026 3. Fee income grew by 10.1% year-on-year to ₹6,491 crore i

4.34%

ear-on-year to ₹21,529 crore in Q2- 2026 2. Net interest margin was 4.30% in Q2-2026 compared to 4.34% in Q1-2026 3. Fee income grew by 10.1% year-on-year to ₹6,491 crore in Q2-2026 4. Core operating

10.1%

6 2. Net interest margin was 4.30% in Q2-2026 compared to 4.34% in Q1-2026 3. Fee income grew by 10.1% year-on-year to ₹6,491 crore in Q2-2026 4. Core operating profit grew by 6.5% year-on-year to ₹17,

₹6,491 crore

rgin was 4.30% in Q2-2026 compared to 4.34% in Q1-2026 3. Fee income grew by 10.1% year-on-year to ₹6,491 crore in Q2-2026 4. Core operating profit grew by 6.5% year-on-year to ₹17,078 crore in Q2-2026 5. Prov

6.5%

Fee income grew by 10.1% year-on-year to ₹6,491 crore in Q2-2026 4. Core operating profit grew by 6.5% year-on-year to ₹17,078 crore in Q2-2026 5. Provisions (excluding provision for tax) were ₹914 cro

₹17,078 crore

0.1% year-on-year to ₹6,491 crore in Q2-2026 4. Core operating profit grew by 6.5% year-on-year to ₹17,078 crore in Q2-2026 5. Provisions (excluding provision for tax) were ₹914 crore in Q2-2026 6. Profit befor

₹914 crore

by 6.5% year-on-year to ₹17,078 crore in Q2-2026 5. Provisions (excluding provision for tax) were ₹914 crore in Q2-2026 6. Profit before tax excluding treasury grew by 9.1% year-on-year to ₹16,164 crore in

9.1%

ding provision for tax) were ₹914 crore in Q2-2026 6. Profit before tax excluding treasury grew by 9.1% year-on-year to ₹16,164 crore in Q2-2026 7. Profit after tax grew by 5.2% year-on-year to ₹12,3

₹16,164 crore

x) were ₹914 crore in Q2-2026 6. Profit before tax excluding treasury grew by 9.1% year-on-year to ₹16,164 crore in Q2-2026 7. Profit after tax grew by 5.2% year-on-year to ₹12,359 crore in Q2-2026 8. Standa

5.2%

ding treasury grew by 9.1% year-on-year to ₹16,164 crore in Q2-2026 7. Profit after tax grew by 5.2% year-on-year to ₹12,359 crore in Q2-2026 8. Standalone RoE was 16.0% in Q2-2026 9. At September 3

Guidance — 20 items

Sandeep Batra

opening

“The Bank continues to hold contingency provisions of ₹13,100 crore at June 30, 2025 Going forward, we will continue to operate within our strategic framework while focusing on micromarkets and ecosystems.”

Sandeep Batra

opening

“We aim to be the trusted financial services provider of choice for our customers and deliver sustainable returns to our shareholders.”

Sandeep Batra

“As you rightly said, given all the policy measures, both from a fiscal and a monetary perspective, which have happened during the course here, we do expect the second half to be better.”

Sandeep Batra

“And we really remain positive on the overall loan growth going forward.”

Vishwanath Nair

“I wanted to get a sense, because you're the premier corporate project financial lender in the market.”

Sandeep Batra

“As I did mention, we do expect that in the second half, retail growth should improve.”

Sandeep Batra

“The business banking growth continues to have a good momentum and I do expect that to grow.”

Ankur Mishra

“Do you think this will be sustainable with a scenario where one more rate cut is widely expected?”

Sandeep Batra

“So, a short answer on NIM is we do expect it to be range bound.”

Sandeep Batra

“And of course, if there is a rate cut, there will be some nominal impact which will happen on the NIM as well.”

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Risks & concerns — 15 flagged

Maintaining high standards of governance, deepening coverage and enhancing delivery capabilities with a focus on simplicity and operational resilience, are key drivers for our risk calibrated profitable growth.

— Sandeep Batra

The retail, there was a bit of a slowdown, as you had seen.

— Sandeep Batra

We will look at opportunities wherever we are, which falls within both the risk and the pricing framework.

— Sandeep Batra

So, since you mentioned that, you touched upon both the points about net interest margin compression from RBI rate cuts and the impact on ECL norms, I just wanted to quickly follow up that we've seen only four basis points of compression on the margin from the expected 50 bps transmission that was expected in the June-Sept quarter.

— Priyasmita Dutta

It is not only about the loan portfolio and wherever we see appropriate risk and reward measures, we try to drive the overall 360 relationships.

— Sandeep Batra

The reason I talked about the loan growth, of course, there was a bit of a slowdown till the GST revised rate cut, which got implemented from 22nd of September.

— Sandeep Batra

And there have been some sort of voices of concern on the small business exposures, especially in this sort of environment.

— Ashish Agashe

Is that still largely being led by weak demand from corporates for credit or are you also seeing some amount of impact due to the tariff measures being taken?

— Anshika Kayastha

Weak demand for credit, are they not doing well?

— Anshika Kayastha

The margins for the quarter reflect the benefit from the reduction in deposit rates and cost of borrowings as well as the impact of repricing of external benchmark linked loans and investments.

— Within the corporate portfolio

The sequential decline in provisions reflects the impact of KCC seasonality and healthy asset quality across segments.

— Within the corporate portfolio

Excluding the impact of CAT losses of 0.73 billion Rupees in this quarter and 0.94 billion Rupees in Q2 of last year, the Combined ratio was 103.8% and 102.6% respectively.

— Within the corporate portfolio

We are focused on the overall risk- calibrated PPOP journey, and that is how we will look at it.

— Anindya Banerjee

Our aim is and what we operate to is the risk-adjusted PPOP and that has to be done in a framework which is sustainable, and we have to have an appropriate framework for pricing and then we can always tactically do trade-offs, keeping the overall opportunity in mind.

— Anindya Banerjee

But we would rather think of it in terms of the risk-adjusted PPOP opportunity, rather than loan growth per se.

— Anindya Banerjee

Q&A — 20 exchanges

Hi, Mr. Batra. Just a quick question as to why the net interest margin number was not there in your press release because I was just wondering. It's 4.32%, right? If I'm not wrong, that's the number you disclosed.

Sandeep Batra

4.3%, Vishwanath. I think we have disclosed that number. No, it's not in the press release. That is why. It should be there, but anyway, I can point out to you separately. If you want to see, it’s in the P&L - bullet number three. Okay, understood. I just wanted to get a sense from you about the 10.3% total advances growth that you're seeing. Firstly, is this slow compared to what you want? Is this something that you want to accelerate further? Because in general, there is this understanding that there is a massive rate cut that is flowing through the system right now. You should be able to gr

Thank you so much for the opportunity. I want to understand from you regarding the next levers of the growth. You mentioned that retail is slow this quarter. So, will the mix change in the coming quarters? I want to know from you because right now your corporate is growing better, but retail is at least lesser than the aspiration. So, can we see that mix changing?

Sandeep Batra

See, Ankur, for us, we really look at the cash flows, what's happening in the economy. And we are sort of a follower in that space and our loan growth has been largely in line with what the system has been growing. And if you see even the various components of it, if business banking is an area where the economic activity is more and it is bankable and falls within our thresholds, it continues to grow. The retail, there was a bit of a slowdown, as you had seen. And as I talked about, given all the policy measures, which both the government of India as well as the Reserve Bank of India has take

Hello. Thank you for this opportunity. I have two questions. So, one is related to the ECL framework. I would like to understand that what is the impact you envisage in terms of provisioning requirements going forward and impact on your capital? And whether you have set aside any provision during this quarter towards this contingency provision you already have? This is number one. Number two is, what is the size of your microfinance book? And whether you expect any improvement or have you seen any improvement in the asset quality in this microfinance sector? Thank you.

Sandeep Batra

Okay. The second question is an easier one. I think our microfinance exposure is less than 0.5%. It is pretty small in the overall scheme of things. Coming to ECL, RBI has given its draft ECL directives. But with RBI, we have been working for quite some time in preparing our account based on ECL. While we will await for the final guidelines to come, we are quite prepared for this transition whenever it happens. Of course, the way accounting happens will change. I mean, there are various stages from stage one, stage two, stage three, as you are all familiar with, whether as opposed to NPAs bein

Hi, sir. So, since you mentioned that, you touched upon both the points about net interest margin compression from RBI rate cuts and the impact on ECL norms, I just wanted to quickly follow up that we've seen only four basis points of compression on the margin from the expected 50 bps transmission that was expected in the June-Sept quarter. So, I just wanted an estimate on further how do you see your net interest margin in the next quarter? And on the ECL norms, if you have any ballpark figure on what kind of impact it will have on your capital adequacy ratio and on your PCR, if you could just

Sandeep Batra

Priya, on the NIM part of it, as I did mention, we do expect NIM to remain range bound with some benefit expected around the CRR and repricing of term deposits. Of course, it will also get impacted by competitive intensity, monetary policy, if there are further rate cuts that could impact it. But largely, we do expect in the near term to remain range bound. And on your second question around ECL, based on our current estimates, we do not see any material impact either on capital or on profitability. So, of course, as I said, we will wait for the final guidelines of RBI to come out and make a f

Sir, good evening. You spoke about the retail credit growth and how the second half promises to be better. But what really sort of restricted the loan growth in the first half of, particularly in this quarter, sir? Was it sort of deferring of some decisions on, say, vehicle buys or something pending the GST cuts or how was it? And secondly sir, for the 9% mortgage growth, how much of it would be between LAP and housing loans the way we classically know it, sir?

Sandeep Batra

Well, I think during the current quarter, our overall loan growth has been about 10.6%. And as I did explain to you, our retail book has grown by about 6.6% year-on-year and 2.6% sequentially for the current quarter. Within that, our year-on-year growth has been in mortgages. Vehicle loans grew by about 2% and credit cards grew by about 8.4% and personal loans by 1.4%. So, from our point of view, we look at the customer 360. It is not only about the loan portfolio and wherever we see appropriate risk and reward measures, we try to drive the overall 360 relationships. If you see, the system has

Hi. A couple of questions. I would like to understand a couple of things that the Bank has taken as measures on the employee front. There were reports and updates on LinkedIn, etc., where we were made to understand that the Bank has done away with the bell curve manner of sort of appraising employees. And simultaneously, there is quite a lot of stuff we are picking up on unlawful retrenchment of employees at branch levels and at regional levels, etc. We would like to understand what exactly are the measures being taken by the Bank on the employee front and why is this becoming such a noisy thi

Sandeep Batra

Two separate things. I think the bell curve change has happened more than about almost four or five years back, actually more than six years. So, there is nothing new that is there. Secondly, we never take off anybody unlawfully. In case we are terminating anyone, it will be on the grounds of impropriety and unlawful activity. So, other than that, we do not even terminate employees. And there are the instances that you have talked about, we can talk about it separately. But from our side, we do believe that we have done the right thing. And if you see from an employee perspective, we are proba

Good afternoon, sir. I joined a little late. Sorry if this question was already answered. But can you tell me why the provisions are down? And also our treasury, it was a tough quarter just because of the way the market moved in?

Sandeep Batra

Well, you are right. Treasury was a tough quarter, which had a consequential impact on the lower treasury gains that we talked about. On the credit cost that you mentioned, the total provisions in Q2 were about ₹914 crore compared to provision of about ₹1,800 crore in the previous quarter. As you are aware, KCC provisions happens on a 6-monthly basis. And that happened in the first quarter and there is no corresponding provision in the current quarter, which has been probably the primary driver of a much lower provision during the quarter. So, that is primarily what it is. And over the medium

Yes. So, given that there has been a steep fall in the treasury income, so just as one thing, is the Bank doing something to offset this kind of fall in treasury income by unlocking some other revenue streams, actually?

Sandeep Batra

No, Ram, internally we are focused on PBT excluding treasury. Treasury is cyclical and it is a function of interest rate movements which are not necessarily within the control of the Bank. We look at overall economic growth and try to maximise opportunities which come from there. This has been sort of an exceptional quarter given the rate movement. The rest of it will depend on the rate movement, our assessment thereof. And what is your outlook for deposit and credit growth for the second quarter, actually? How do you see the second quarter? Second half of the Financial Year? As I did mention,

Hi, good evening. Sir, two questions. First, you touched upon the lower corporate growth. Is that still largely being led by weak demand from corporates for credit or are you also seeing some amount of impact due to the tariff measures being taken? Any fact of that that is playing out? And the second question is that you mentioned margins would be range bound. Other banks have been saying margins are expected to bottom out in Q3. Do you believe that given the expected pickup in credit in the second half and we are also seeing liquidity tighten a little more again, that you have limited room fo

Sandeep Batra

Corporate, as I did mention, I don't think so it is about the corporates not doing well. I had mentioned that the corporates have got... Weak demand for credit, are they not doing well? No, coming from a corporate per se, they are cash rich. They have got high internal accruals. They have access to equity markets, which are buoyant and you can see a lot of corporates having the ability to raise markets from the markets. There is also a pretty healthy bond market domestically and they have access to ECBs. So, corporates have multiple sources of funding. Of course, the banks play an important ro

Thank you. I just want to say, I wish you all a very Happy Diwali and thank you for being with us today afternoon. Happy Diwali once again.

Management

• The total outstanding to NBFCs and HFCs was 794.33 billion Rupees at September 30, 2025 compared to 874.17 billion Rupees at June 30, 2025. The total outstanding loans to NBFCs and HFCs were about 4.4% of our advances at September 30, 2025. 4 • The builder portfolio including construction finance, lease rental discounting, term loans and working capital was 635.83 billion Rupees at September 30, 2025 compared to 628.33 billion Rupees at June 30, 2025. The builder loan portfolio was 4.1% of our total loan portfolio. Our portfolio largely comprises well-established builders and this is also re

Management

Hi, congratulations. My first question was on growth. Do you already see green shoots on growth? Do you see growth accelerating after so many measures taken by the government? And, will we reach like close to mid-teens by the end of the year? Is that an assessment we can make right now? That's my first question.

Anindya Banerjee

So, I think whatever we have seen in the quarter, certainly, growth has picked up. So, if you see the sequential growth in Q2 across all the retail portfolios certainly has picked up, business banking growth continues to be strong, and we hope that these trends will sustain. We are positive on the growth outlook. We would not really be giving a specific year-end loan growth number. But certainly, both in terms of what is happening in the market and our own continuing investment in distribution and allocating capacity to the higher growth opportunities, that continues, and we continue to focus

Hi. Thanks for this and fantastic set of numbers, congratulations. The question is on CASA. Your CASA market share has been improving, if I look at on the average balance basis. Could you talk a bit about how much of visibility do you have in this continued market share gains on CASA? And what are the 2 or 3 areas where you expect relative advantage to sustain over, let's say, next 12, 18 months?

Anindya Banerjee

I think where the CASA growth has improved from over the last few years because these things really take root over a period of time, I would say 3 things: One is the steady expansion in distribution over a period of time. Second, I think our digital platforms do help. Certainly, they are something that attracts 13 customers to the bank and offers convenience to the customers and encourages flows through the bank. And third, there are specific segments that we have been focusing on over a period of time. I think business banking is a great example, where while the loan growth is visible, the CA

Hello, thank you. Sir, a couple of questions. Sandeep, first question to you, are you in a position to kind of give us any colour on your intention to continue for another term? I think investors kind of have been looking for some clarity around that. Any colour on that would be great. Number two, in terms of the trade-off between growth and profitability, we have now kind of sustainably developed the 30-40 bps ROA difference versus even the next best peer. Are we kind of giving up some growth as part of it? Is there a scenario where we could accept a 10-20 bps lower ROAs and go for higher gro

Anindya Banerjee

So, I will take both the questions, Anand. As far as the position of CEO is concerned, you are aware that there is still a year to go and the Board will take a view and decide and disclosure will be made at the appropriate time. On the growth trade-off point, we don't really look at it as a trade-off between growth and profitability. Our aim is and what we operate to is the risk-adjusted PPOP and that has to be done in a framework which is sustainable, and we have to have an appropriate framework for pricing and then we can always tactically do trade-offs, keeping the overall opportunity in mi

Hi. again say, on the growth side, but particularly looking at the various segments of retail like, say, vehicle, obviously, the industry-wide volumes were down, but with the GST cuts, we have seen the momentum. So, should we expect any uptick out there on the vehicle loans, how has been the initial maybe 15, 20 days of feedback? 16 Plus personal loans, are we comfortable on the overall credit cost? When should we start to see the growth out there? It's been just flat on both year-on-year and a quarter-on-quarter basis. And even on the mortgages, obviously, it's competitive and not PPOP-accret

Anindya Banerjee

So, as I said, overall, if you see the loan growth has picked up from 1% sequentially in the previous quarter to 3% in this quarter. And we are positive on growth, both in terms of the market opportunity and the way we are continuing to gear up our distribution and allocate resources to growth segments and growth markets. So, we would hope to see a growth in these segments. As far as the question on personal loans is concerned, if you look at the overall retail NPL, the additions have declined, both year-on-year and sequentially despite the growth in the balance sheet. And we do see, I think,

Thanks for the opportunity. Few ones. First on opex, with festival-related non- salary expenses coming in 2Q this year, should one expect a sequential decline in opex in the 3rd Quarter given that these expenses could have been front-ended?

Anindya Banerjee

So, I guess in that line item, you see a decline. I am not sure I want to say that there will be a decline in overall opex, because we continue to invest, and we are quite focused on the growth of the business. I don't expect sequential increases of the kind that we have seen in this quarter. Got it. Second is on retail asset quality. Until now, you have been saying that it has been stable for us. But if we look at the slippages, in absolute terms, they are down almost 7% Y-o-Y when your rural plus retail book has grown 6%. So, clearly, a huge delta. So, are we in a position to now say that th

Congrats on a good set of numbers. And Happy Diwali. So, firstly, just on NIM. Anindya, why do you say they will be largely range-bound for the next 2 quarters? I understand next quarter, you are talking about the interest reversals in kisan credit card, but why shouldn’t the NIMs improve consistently for the next 4 to 6 quarters?

Anindya Banerjee

I think I would say, we have navigated the cycle reasonably well and the NIMs have come in at this level. Over the next few quarters, we will see, there are too many moving parts in terms of monetary policy, the competitive dynamic, loan mix and so on. So, we will see it as it comes. We have not really taken a view on next year. For the next couple of quarters, it should be range-bound. Let me harp on this in another way. Out of your INR 9.5 lakh crore term deposit book, how much was acquired in the last 6 months? We don't really give data of that kind. On the NIM question, we have given our p

But we don’t have a sense of what kind of increments etc. will happen. We can't really model it for you. But as I said, over the next couple of quarters, I don't expect overall opex to increase at the pace at which it has in the current quarter.

Piran Engineer

Got it. Fair enough. And just lastly, getting back to Rikin's question on slippages. Now slippages are down meaningfully even if you adjust for the KCC portfolio, is all of that improvement attributable to PLCC or are we seeing improvement in other retail segments also? So, we have given, first of all, the breakup between retail and rural and corporate and business banking. So, there is a small net dilution in corporate and business banking. But I would say you are right across most of the other retail segments. No, I am referring only to retail and rural, Anindya. So, it's about INR 1,200 cro

Can I come back on the capital points? Just the credit risk reduction seems substantial, you highlighted it's a net positive. Your CET1 ratios are also very high. I understand that's where the larger banks operate. But isn't there an opportunity here to grow at the pace you want to grow or take the opportunity that is on the table and yet improve payouts? Because from our vantage point, the top 3 banks in the system are swimming in capital. Just want to get some thoughts on how this might play out as these guidances and the draft reports become more concrete?

Anindya Banerjee

So, we will take a view at that point in time. This is any way going to kick in 1.5 years from now. And really a lot of it depends on what is the position of the balance sheet at that point in time, and which are the segments where we have 24 seen growth. So, overall, capital is not constraining us from growing. We are continuing to focus on the kind of growth that we want. Yes. In fact, your retained earnings is enough to grow already. On ECL, could you give us some colour? From your last submission, you said there is no impact for you. So, I am assuming there's no impact, including the other

Thank you very much, and wish you all a very, very Happy Diwali. Thank you.

Management

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Speaking time

Sandeep Batra

Anindya Banerjee

Moderator

Piran Engineer

Ira Dugal

Vishwanath Nair

Anshika Kayastha

Mahrukh Adajania

Kunal Shah

Chintan Joshi

Opening remarks

Sandeep Batra

Good evening everyone. Thank you all for joining us today. The Indian economy continues to remain resilient as reflected by high frequency indicators showing positive momentum, supported by the consistent actions and initiatives of the policymakers to promote growth. Our strategy continues to align with India’s growth trajectory, while continuously monitoring risks and global volatilities. At ICICI Bank, our strategic focus continues to be on growing profit before tax excluding treasury through the 360-degree customer centric approach and by serving opportunities across ecosystems and micromarkets. We continue to operate within the framework of our values to strengthen our franchise. Maintaining high standards of governance, deepening coverage and enhancing delivery capabilities with a focus on simplicity and operational resilience, are key drivers for our risk calibrated profitable growth. Our Board has today approved the financial results of ICICI Bank for the quarter ended September

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