## **ICICI Bank Delivers Strong Q4FY26 Performance with Robust Credit Growth** **Key Highlights** • Profit after tax surged 21.1% quarter-on-quarter to ₹137.02 billion, demonstrating strong operational momentum. • Total loans grew to 15.8% year-on-year and 6.0% quarter-on-quarter • Net NPA ratio improved to 0.33% with provision coverage strengthening to 75.8%, reflecting superior asset quality. • Board recommended dividend of ₹12 per share, underlining confidence in sustainable earnings trajectory. ICICI Bank concluded FY26 on a commanding note, delivering its strongest quarterly performance with profit after tax climbing 21.1% sequentially to ₹137.02 billion. The quarter showcased the bank's ability to maintain growth momentum while preserving asset quality discipline, positioning it as a standout performer in India's competitive banking landscape. **Credit Engine Firing on All Cylinders** The bank's lending franchise demonstrated remarkable vigor with total loans expanding 15.8% year-on-year and 6.0% quarter-on-quarter. Business banking emerged as the star performer, registering 24.4% annual growth as ICICI Bank deepened its penetration among borrowers with turnover up to ₹7.50 billion. Retail loans maintained steady momentum with 9.5% yearly expansion, while the domestic corporate portfolio grew a healthy 9.3% annually. This balanced growth across segments reflects the bank's strategic focus on diversified credit origination rather than concentration in any single area. **Deposit Mobilization Remains Robust** The liability franchise continued its strong trajectory with total deposits growing 11.4% year-on-year and 8.1% quarter-on-quarter at period end. Average CASA deposits expanded 11.3% annually, demonstrating the bank's ability to attract low-cost funding despite intense competition. The deposit base reached impressive scale while maintaining prudent concentration limits, with exposure to the top 20 depositors at just 3.60% of total deposits, ensuring stability and reducing concentration risk. **Asset Quality Reaches New Heights** Credit quality metrics hit fresh peaks with net NPA ratio improving to 0.33% from 0.37% in the previous quarter. Net additions to gross NPAs declined to ₹11.74 billion from ₹13.25 billion in the corresponding quarter last year, indicating effective risk management. The provision coverage ratio strengthened to 75.8%, while total provisions stood at ₹227.10 billion, including substantial contingency provisions of ₹131.00 billion. Notably, all top 20 borrowers maintain internal ratings of A- and above, reflecting the bank's conservative underwriting standards.  **Margins Hold Steady Amid Competition** Net interest margin remained stable at 4.32% for both the quarter and full year, showcasing pricing discipline in a competitive environment. The bank maintained healthy yield on advances at 8.87% while keeping cost of deposits contained at 4.43%. Domestic NIM of 4.41% in the quarter demonstrates the core franchise's resilience, with management successfully balancing growth aspirations with profitability requirements. **Fee Income Momentum Accelerates** Non-interest income streams gained traction with fee income reaching ₹67.79 billion in Q4, growing 7.5% sequentially and 7.8% annually to ₹257.42 billion for the full year. Total non-interest income expanded 11.1% yearly to ₹295.60 billion, reflecting the bank's success in cross-selling products and deepening customer relationships. Core operating income growth of 9.2% annually to ₹1,176.35 billion underscores the franchise's earning power across cycles. **The Bigger Picture** ICICI Bank enters FY27 from a position of considerable strength, having demonstrated its ability to deliver consistent performance across key metrics. The combination of robust credit growth, improving asset quality, stable margins, and strong common equity tier 1 (CET1) of 16.35% positions the bank well for sustained growth. With a diversified business model and disciplined execution, ICICI Bank appears well-equipped to capitalize on India's economic expansion while maintaining its reputation for prudent risk management.