Reduction in provisions helped ICICI Bank’s net profit in Q4 of FY26

ICICI Bank reported a 9% year-on-year rise in net profit for the quarter ended March 2026 mainly due to stable loan growth and net interest margin (NIM). Net profit for the quarter ended March 2026 was Rs. 12,630 crore to Rs. 13,702 crore and was also helped by a sharp fall in provisions.

Total advances at the end of March 2026 increased by 16% year-on-year to Rs. 15.53 lakh crores. Retail loans which account for 50% of the loan book grew by 10% while corporate loans grew by 9% year-on-year.

NIM for the year ended March 2026 was little changed at 4.32%. Net interest income (NII), or the difference between interest earned on loans and interest paid on deposits, rose 8% in March 2026 to Rs. 22,979 crore which was Rs. 21,193 crores.

Executive Director Sandeep Batra said the bank is monitoring the situation especially due to geopolitical uncertainty and will continue to focus on gaining wallet share of high-quality customers.

A sharp fall in provisions boosted the bank’s profits during the quarter. Provisions a year ago Rs. 891 crores down by 90% to Rs. 96 crore has been done. Batra said the large year-on-year decline in provisions reflects strong asset quality and healthy recovery from the corporate book.

“Our credit cost normalized for the agriculture book is below 50 basis points which is very healthy in the current environment. There was also some corporate recovery from written off accounts during the quarter which helped,” Batra said.

Asset quality stabilized at 0.33% as on March 31, 2026, down from 0.39% a year ago. Excluding NPA recoveries and upgrades, write-offs and sales, a year ago Rs. 3,817 crore as against Rs. 3,068 crores. The provisioning coverage ratio on non-performing loans at the end of March 2026 was 76%.

By March 2026, the bank has made Rs. 13,100 crore as contingency provision and Rs. 1,283 crore has an additional standard asset provision.

In March 2026, fee income increased by 8% to Rs. 6,779 crore which was Rs. 6,306 crore, with retail, rural and business banking customer fees accounting for around 78% of total fees during the quarter.

During the quarter the bank received Rs. 106 crore treasury suffered a deficit reflecting the RBI’s restrictions on non-deliverable forwards and the sharp rise in bond yields during the month of March. A year ago, the bank had Rs. A treasury gain of 239 crores was recorded. The board of the bank for FY2026 has fixed Rs. 12 has been recommended as a dividend.