ICICI Bank

“The increase in proportion of the assets of overseas branches in the total assets and large sequential increase in the retail term deposit base have led to a moderation in margins, and the full impact would reflect in the third quarter, after which we expect the margins to start moving back up, even based on the current level of policy rates.”

“The FCNR (B) deposits were raised during Q2. So, the full impact of this on the average balance sheet will come in Q3, and we will see a further moderation in margins, offset a little bit by the rate hike, which has already taken place.”

“But then from Q4, I would expect margins to come back in a healthy way as these factors start to reverse out, even assuming that there are no further rate hikes.”

“We do expect a marginal decline in NIM in the current quarter. But after that, we do expect NIM to start increasing even at the current policy rate levels.”

“The overall loan portfolio including the international branches portfolio grew by 30.0% year-on-year and 12.3% sequentially at September 30, 2026.”

“Excluding loans provided by international branches of the Bank against FCNR (B) deposits, total loans grew by 24.1% year-on-year and 7.3% sequentially.”

“The retail and rural portfolio grew by 14.8% year-on-year and 3.2% sequentially.”

“The business banking portfolio grew by 33.8% year-on-year and 11.1% sequentially.”

“The domestic corporate portfolio grew by 30.6% year-on-year and 10.4% sequentially.”

“The growth has been largely broad-based, and it includes segments across capex, and a higher working capital cycle. Yes, there has been some demand shift from bond market, ECBs, towards bank borrowing.”

“I don't think there is anything of temporary parking of FCNR funds, etc. It is really a response to client demand and our view on pricing.”

“the interesting thing is gold loan is no longer a rural product. It is as much becoming an urban product, and it is spanning across all customer segments.”

“I think for banks in general and for us, growth is supported currently by some of the factors that we mentioned earlier, including some amount of shift from bond markets as well as some amount of shift from offshore to onshore rupee markets.”

“Adjusting for one-off corporate recoveries, standard asset provision on loans provided against FCNR (B) deposits and seasonality of KCC provisioning, the normalized credit cost to advances would be about 50 basis points.”

“The net interest margin was 4.18% in this quarter compared to 4.36% in the previous quarter and 4.30% in Q2 of last year.”

“there has been a marginal decline in CASA ratio, and the impact of that mix change between CASA and term deposits has been about nine to ten basis points.”

“The domestic NIM excluding benefit of interest on income tax refund was 4.32% in the current quarter compared to 4.36% in the previous quarter and 4.37% in Q2 of last year.”

“The cost of deposits was 4.50% in this quarter compared to 4.41% in the previous quarter and 4.64% in Q2 of last year.”

“On the cost part of it, I think the landed cost comes to about 6.5%, that includes hedging and everything else on FCNR (B).”

“These funds are available for us to provide in three to five years, which actually gives us a very stable source of funding.”

“We have deployed this in paying off some bulk deposits. Some of this has gotten deployed in the loan growth which has happened during the quarter. The other balance, we would deploy it over the next two quarters.”

“As you are aware, these deposits are exempt from SLR, CRR, and PSL requirements, which ensures that these incremental deposits are earning accretive.”

“Total deposits grew by 27.1% year-on-year and 11.8% sequentially at September 30, 2026.”

“The Bank has mobilised gross FCNR (B) deposits of about $18 billion, pursuant to Reserve Bank of India’s swap facility”

“Out of the $18 billion that we garnered, leveraged deposits were about close to $10 billion. With partner banks, leverage was about $3.63 billion. There were retail customers who did not take any leverage, was about $4.34 billion.”

“The Bank purchased 2% additional shareholding in ICICI Life Insurance Limited for consideration of 14.70 billion Rupees during the quarter.”

“We do have a strong bench within the Bank, and whoever leaves us, we wish them the very best.”

“once we have a final discussion with the Reserve Bank of India, and if they are comfortable with the provisioning, we will reverse it at this point of time. So probably, that will happen in the coming quarter or the next.”

“That process is underway. Hopefully, we should have an update on that over the next 2 quarters.”

“Yes, in this quarter, there was one relatively chunky recovery on the corporate side.”

“Yes, there is some amount of the processing fees that were charged for the leverage against FCNR. But equally, for example, if you look at the opex, the sequential increase in opex, it's largely due to the cost of the wholesale resources, bonds and loans that we raised during the quarter to fund that leverage. So broadly, the two even each other out.”

“Dividend income from subsidiaries was 4.63 billion Rupees in this quarter compared to 8.10 billion Rupees in Q2 of last year primarily reflecting the shift in timing of dividend declaration from quarterly to half-yearly basis by ICICI Prudential AMC Limited.”

“As we speak, there is no material impact witnessed in our portfolio.”

“The Bank also continues to hold additional standard asset provision of 12.83 billion Rupees made in Q3 of FY2026 as directed by RBI in respect of the agricultural priority sector portfolio till completion of the review process.”

“The loans and non-fund based outstanding to performing corporate borrowers rated BB and below was 35.47 billion Rupees at September 30, 2026 as compared to 34.85 billion Rupees at June 30, 2026 and 36.61 billion Rupees at September 30, 2025.”

“The total outstanding loans to NBFCs and HFCs were about 4.3% of our advances at September 30, 2026.”

“The builder loan portfolio was 4.0% of our total loan portfolio.”

“Frankly, I would say that we have done better than what we originally thought we would do when this scheme started.”

“The net NPA ratio was 0.30% at September 30, 2026 compared to 0.35% at June 30, 2026 and 0.39% at September 30, 2025.”

“The gross NPA additions were 48.33 billion Rupees in the current quarter compared to 50.34 billion Rupees in Q2 of last year.”

“On provisioning, I think if we look at it on the NPL formation in the corporate side, new NPL formation on the corporate side is negligible.”

“In addition, the Bank continues to hold contingency provisions of 131.00 billion Rupees or about 0.7% of total advances at September 30, 2026.”