ICICI Bank Q1 FY26 Results

Key Highlights

Net Profit: ₹12,768 crore (+15.5% YoY), beating analyst estimates .
Net Interest Income (NII): ₹21,635 crore (+10.6% YoY), driven by loan growth and stable margins .
Asset Quality: Gross NPA improved to 1.67% (vs. 2.15% YoY); Net NPA at 0.41% .
Deposits & Advances: Deposits grew 12.8% YoY to ₹16.08 lakh crore; advances up 11.5% YoY .
Strategic Move: Board approved acquisition of ICICI Prudential Pension Funds (ICICI PFM) for ₹203.5 crore .

Financial Performance Breakdown

1. Profitability & Margins

Core Operating Profit: ₹17,505 crore (+13.6% YoY) .
Net Interest Margin (NIM): Slightly declined to 4.34% (from 4.41% in Q4 FY25) due to deposit repricing .
Other Income: Surged 21.5% YoY to ₹8,505 crore, aided by treasury gains (₹1,241 crore) .

2. Loan Portfolio Growth

Retail Loans: 52.2% of total portfolio; grew 6.9% YoY .
Business Banking: Robust 29.7% YoY growth .
Corporate Loans: Up 7.5% YoY but declined 1.4% QoQ .

3. Asset Quality & Provisions

Slippages: ₹6,245 crore (mainly from agri/rural loans) .
Provisions: ₹1,815 crore (up from ₹1,332 crore YoY) .
Provision Coverage Ratio (PCR): 75.3% .

Strategic Developments

ICICI PFM Acquisition:

To become a wholly owned subsidiary, enhancing wealth management services .
Aims to leverage synergies in pension and retirement solutions .

Digital & Retail Focus:

Management emphasized calibrated risk management in unsecured loans (credit cards/personal loans grew only 1% YoY) .
CASA Ratio: Stable at 38.7% .

Management Commentary

Sandeep Batra (ED):
Expects further NIM compression in Q2 due to rate cuts .
Confident in sustaining double-digit loan growth via retail and SME segments .
Outlook: Cautious on rural NPAs but optimistic about festive-season demand .

Market Reaction & Analyst Views

Stock Performance: Shares rose 0.5% pre-results (₹1,426.50 on NSE) .
Targets: Analysts maintain Buy ratings with price targets of ₹1,500–1,600 .
Key Risks: Margin pressures, slower corporate loan growth .

Conclusion: Steady Growth Amid Challenges

ICICI Bank’s Q1 FY26 results reflect resilient profitability, improving asset quality, and strategic diversification into pension services. While NIM pressures persist, strong deposit growth and retail focus position the bank for sustained performance.

Investors should watch:
✅ NIM trajectory in Q2 FY26
✅ Execution of ICICI PFM integration
✅ Retail loan growth sustainability

For detailed reports, visit ICICI Bank Investor Relations.

Disclaimer: Not investment advice. Consult a financial advisor.