Federal Bank vs ICICI Bank Q4 FY26

FE

Federal Bank

Q4 FY26 · Banking

Federal Bank delivered a record Q4 FY26 with net profit of ₹1,145 crore (up ~10% QoQ), driven by strong NII growth of 14.2% YoY and record fee income of ₹991 crore (+24% YoY). NIM expanded 2bps QoQ to 3.20%, supported by a 4bps decline in cost of funds to 5.46%. CASA ratio improved 87bps QoQ to 32.94%, with CASA balances crossing ₹1 lakh crore. Asset quality improved to decadal bests: GNPA 1.62%, NNPA 0.37%. ROA reached 1.24% (ex-one-offs), back to pre-rate-cut levels. Management guided for continued NIM expansion, 100 new branches in FY27, and maintained credit cost guidance of 50-60bps. Key risk: escalation of West Asia conflict impacting energy prices and remittance inflows.

Guidance read

NIM expansion to continue: Management expects further NIM improvement through deposit repricing, liability mix shift, and asset mix optimization. 100 new branches in FY27: Planned branch expansion of about 100 branches in the next fiscal year, supported by data-driven network strategy. Credit cost guidance maintained at 50-60 bps: Credit cost guidance remains unchanged at 50-60 basis points, though subject to review based on geopolitical clarity. CASA ratio target of 36%: Management reiterated the medium-term target of 36% CASA ratio, achievable given recent strong momentum.

Risk read

Key risks include West Asia conflict escalation — Geopolitical tensions could disrupt energy markets and remittance inflows, impacting deposit stability and asset quality.; Home loan pricing pressure — Intense competition in home loans with rates as low as 7.15% vs deposit costs above that, limiting growth in this segment.; ECL transition impact uncertainty — Management has not yet assessed the full impact of the new ECL guidelines, creating near-term provisioning uncertainty.; Potential job losses in Middle East — If the West Asia conflict leads to job losses and return of NRIs, remittance inflows and NR deposits could be affected..

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.