Axis Bank vs ICICI Bank Q4 FY26

AX

Axis Bank

Q4 FY26 · Banking

Axis Bank reported Q4 FY26 PAT of ₹7,711 crore, flat YoY, impacted by a one-time standard asset provision of ₹2,001 crore and a tax benefit of ₹2,193 crore. NII grew 5% YoY to ₹14,457 crore, while NIM contracted 29bps YoY to 3.62%. Loan growth was robust at 19% YoY, driven by wholesale (38% YoY) and retail disbursements (+24% YoY). Asset quality improved with GNPA at 1.23% (down 17bps QoQ) and net credit cost at 37bps (down 39bps QoQ). Management reiterated a through-cycle NIM target of 3.8% within 15-18 months of the last rate cut. The bank created a ₹2,001 crore buffer provision against West Asia risks. Key risk: prolonged geopolitical tensions could stress asset quality and credit costs.

Guidance read

Through-cycle NIM target of 3.8%: Management expects to achieve a through-cycle NIM of 3.8% within 15-18 months from the last rate cut transmission. Retail-commercial mix target of 70:30: The bank aims to maintain a retail and commercial banking advances mix of approximately 70% of total advances, plus/minus 3-4%. No equity capital requirement for growth: Management reiterated that the bank does not need equity capital for growth or protection; may issue Tier 2/AT1 instruments opportunistically.

Risk read

Key risks include West Asia geopolitical tensions — Prolonged conflict could disrupt supply chains, raise oil prices, and impact asset quality and credit costs.; Deposit pricing pressure — Analyst raised concern about rising wholesale deposit rates; management noted year-end uptick but expects some softening.; NIM compression from rate cuts — Full transmission of 25bps repo cut impacted NIM; further cuts could pressure margins despite repricing benefits..

Promise ledger

Scorecard data is being built as historical quarters are processed.

IC

ICICI Bank

Q4 FY26 · Financial Services

ICICI Bank reported a solid Q4 FY26 with PAT of ₹13,702 crore (+8.5% YoY) driven by strong loan growth of 15.8% YoY and stable NIM at 4.32%. Asset quality improved with net NPA at 0.33% and credit cost at 38bps for FY26. Retail loan growth picked up, especially mortgages (+13.2% YoY) and rural (+25.6% YoY), while credit card book contracted. Management expects margins to remain rangebound and aims to grow revenues ahead of costs. Key risk: escalating West Asia conflict could impact economic outlook and credit demand.

Guidance read

Credit cost below 50bps in FY27: Management expects credit cost to remain below 50 basis points, excluding one-time items, supported by healthy asset quality. Opex growth below revenue growth: Management aims to keep operating expense growth lower than revenue growth, targeting positive jaws. NIM rangebound around 4.3%: Net interest margin expected to remain in the current range, with limited upside due to competitive pricing.

Risk read

Key risks include West Asia conflict impact — Escalating conflict could cloud economic outlook and affect credit demand and asset quality.; Credit card book contraction — Credit card portfolio declined for second consecutive quarter, with lower revolvers impacting profitability.; Residual deposit repricing — Some deposit repricing remains, which could pressure NIMs if not offset by asset repricing..

Promise ledger

Of 3 tracked promises, management 0 met, 0 close, 3 missed.