Corporate demand to drive ICICI Bank's 16% loan CAGR

The bank does not face additional stress from the Middle East conflict or the ECL transition.

India’s ICICI Bank is expected to deliver a compound annual growth rate (CAGR) of 16% for its loans over FY2026 to FY2028, lifted by business banking and the corporate segment.

The corporate segment in particular is expected to witness healthy traction, supported by working capital demand, said Motilal Osiwal in a report published on 4 June 2026.

The bank also does not face additional portfolio stress from the US-Israel war on Iran and the expected credit loss (ECL) transition.

The Reserve Bank of India (RBI) had proposed shifting provisioning requirements and overhauling its loss model in October 2025, introducing the ECL framework. The framework mandates banks to compute probability-weighted ECLs across multiple scenarios to ensure forward looking provisioning.

These directions will come into effect from 1 April 2027.

Currently, Indian banks only recognise credit losses after a default event.

“ICICI Bank is well-positioned to sustain its growth momentum while maintaining profitability benchmarks,” Motilal Osiwal said.

ICICI Bank’s liability franchise continues to remain best-in-class, supported by diversified acquisition engines and a rapidly expanding physical network, it added.

“ICICI Bank's asset quality remains robust, supported by disciplined underwriting, continued monitoring, and strong recoveries,” it said.