Lower credit costs lift ICICI Bank profits to $1.46b in Q4

Net interest income grew 8%.

ICICI Bank beat estimates, reporting a profit after tax of $1.46b (IND137b) for Q4 FY2026, lifted by lower credit costs, said InCred Equities.

Core performance was broadly in line, with a healthy net interest income (NII) and strong average balance sheet growth, said Bhavik Shah and Rishabh Jogani, analysts for InCred Equities.

“ICICI Bank continues to consistently post superior profitability, while re-rating from here on will hinge on sustained volume growth delivery,” the analysts said.

NII grew 8% year-on-year (YoY), led by an average balance sheet growth of 11% YoY.

However, core fee income growth did not meet expectations at just 8% YoY, said Shah and Jogani.

Loan growth is 16% YoY in Q4, compared to 12% the previous quarter. Deposit growth improved to 11% YoY, from 9% YoY a quarter earlier.

Key downside risks for ICICI Bank are lower-than-expected deposit growth, weak margin progression, and worsening asset quality trend, said Shah and Jovani.

(US$1 = INR94.09)