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View Promises →Icicibank Ltd — Q2 FY26
ICICI Bank reported a steady Q2 FY26 with PAT growing 5.2% YoY to INR 123.59 billion, driven by core operating profit growth of 6.5% YoY.
bullish
high
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ICICI Bank reported a steady Q2 FY26 with PAT growing 5.2% YoY to INR 123.59 billion, driven by core operating profit growth of 6.5% YoY. Net interest income rose 7.4% YoY to INR 215.29 billion, with NIM stable at 4.30%. Domestic loan growth accelerated to 10.6% YoY, led by business banking (+24.8% YoY) and retail (+6.6% YoY). Asset quality improved, with net NPA at 0.39% and lower slippages. Management guided for range-bound margins and sustained growth, citing investments in distribution and digital platforms. Key risks include competitive pressure on margins and potential impact from ECL norms, though the bank holds strong contingency provisions of INR 131 billion.
आईसीआईसीआई बैंक ने दूसरी तिमाही में अच्छा प्रदर्शन किया। इसका मुनाफा पिछले साल की तुलना में 5.2% बढ़कर 12,359 करोड़ रुपये हो गया। बैंक की मुख्य कमाई 6.5% बढ़ी। ब्याज से होने वाली आय 7.4% बढ़कर 21,529 करोड़ रुपये रही, और ब्याज दर का अंतर 4.30% पर स्थिर रहा। कर्ज देने में तेजी आई, खासकर व्यापार बैंकिंग में 24.8% और खुदरा में 6.6% की बढ़ोतरी हुई। बैंक के खराब कर्ज में कमी आई है, जो अब सिर्फ 0.39% रह गया है। प्रबंधन का कहना है कि ब्याज दरें स्थिर रहेंगी और विकास जारी रहेगा। बैंक ने डिजिटल प्लेटफॉर्म में निवेश किया है। हालांकि, मुनाफे पर दबाव और नए नियमों का असर हो सकता है, लेकिन बैंक के पास 13,100 करोड़ रुपये का मजबूत आपातकालीन कोष है।
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ECL provisioning impact uncertain
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Read Transcript →Quarter Snapshot
Domestic Loan Growth YoY
10.6%
+10.6pp YoY
Domestic loan portfolio grew 10.6% year-on-year, with sequential growth of 3.3%.
Net NPA Ratio
0.39%
-3bps YoY
Net NPA ratio improved to 0.39% from 0.42% a year ago, reflecting better asset quality.
CASA Growth YoY
9.7%
+9.7pp YoY
Average CASA deposits grew 9.7% year-on-year, supporting stable funding profile.
Cost of Deposits
4.64%
-24bps YoY
Cost of deposits declined to 4.64% from 4.88% a year ago, aiding margin stability.
What Changed vs Last Quarter
NEW
NIMs expected to be range-bound over next couple of quarters
Management expects net interest margins to remain broadly stable, with no major movements either way, despite deposit repricing and competitive dynamics.
NEW
Loan growth to sustain with positive outlook
Management is positive on growth outlook, citing sequential pick-up in retail and strong business banking growth, but refrains from giving a specific year-end number.
NEW
Operating expenses not expected to increase at Q2 pace
Management indicated that sequential OpEx growth should moderate from the Q2 level, though continued investment in distribution will persist.
DROPPED
NIM pressure in Q2 from repo rate transmission
Full impact of 50 bps repo rate cut in June will flow through in Q2, partially offset by lower deposit costs.
DROPPED
Credit cost normalization to ~50 bps
Underlying credit cost expected to be around 50 bps, excluding KCC seasonality in Q1 and Q3.
DROPPED
Business banking to grow faster than overall loan book
Business banking portfolio expected to grow faster, increasing its share of total loans.
NEW RISK
ECL provisioning impact uncertain
The final ECL guidelines are yet to be issued; while management expects no transition impact given existing provisions, ongoing credit costs under ECL remain to be assessed.
NEW RISK
Competitive pressure on margins
Management acknowledged competitive dynamics in the market as a factor that could influence NIMs, though they expect range-bound margins.
NEW RISK
KCC seasonality impacting asset quality
Higher NPA additions from the Kisan credit card portfolio are typical in Q1 and Q3, which could affect credit costs in upcoming quarters.
NEW RISK
Potential slowdown in IT services sector affecting salary accounts
An analyst raised concerns about unemployment in IT services impacting salaried accounts; management noted no impact so far but acknowledged the sector's significance.
RISK GONE
Unsecured retail growth slowdown
Personal loans and credit card portfolios grew only 1.4% and 1.5% YoY respectively, reflecting systemic softness and cautious underwriting.
RISK GONE
Margin compression from repo rate cuts
Full transmission of 50 bps repo cut in June will pressure NIM in Q2, though partially offset by lower deposit costs.
RISK GONE
Potential asset quality normalization in business banking
Rapid growth in business banking (29.7% YoY) may lead to higher credit costs as portfolio matures.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25, Q4 FY25
Public sector banks are pricing loans below ICICI Bank, creating challenges for growth in segments like housing.
Mentioned in Q1 FY25, Q1 FY26, Q3 FY25
Underlying credit cost expected to be around 50 bps, excluding KCC seasonality in Q1 and Q3.
Mentioned in Q1 FY26, Q4 FY25
Full transmission of 50 bps repo cut in June will pressure NIM in Q2, though partially offset by lower deposit costs.
Mentioned in Q1 FY25, Q2 FY25
Personal loan growth has slowed from 40% YoY to 17% and is expected to decline further over the next couple of quarters due to tighter underwriting.
Mentioned in Q2 FY25, Q3 FY25
Personal loan and credit card portfolios have seen increased delinquencies over the past six quarters; management has taken corrective actions but trend may persist.
Fast read
Guidance and risk preview
Management expects net interest margins to remain broadly stable, with no major movements either way, despite deposit repricing and competitive dyn...
The final ECL guidelines are yet to be issued; while management expects no transition impact given existing provisions, ongoing credit costs under...
View Risks →