India’s ICICI Bank reported a stronger-than-expected rise in fourth-quarter profit on Saturday, driven by robust loan growth and lower provisions for bad loans.
The country’s second-largest private lender by market capitalisation posted a standalone net profit of 137.02 billion Indian rupees ($1.48 billion) for the three months to March 31, up from 126.30 billion rupees a year earlier.
Analysts had expected a profit of 126.52 billion rupees, according to LSEG data.
The lender’s executive director Sandeep Batra said profits were supported by lower provisions, recoveries from written-off accounts and growth in core interest income, but he did not give a forecast for the new fiscal year, citing ongoing geopolitical uncertainties.
“We are mindful of the geopolitical developments and are keeping a close eye,” Batra said.
Indian banks saw credit demand pick up in the second half of the financial year as easing inflation supported consumer spending and corporate borrowing showed signs of revival.
ICICI Bank’s total loans rose 15.8% from a year earlier, led by continued momentum in retail lending, particularly mortgages and vehicle loans, with business banking and corporate loans also contributing.
Deposits rose 11.4% during the quarter.
Net interest income – the difference between interest earned on loans and paid on deposits – rose 8.4% to 229.8 billion rupees, supported by loan growth and stable margins.
The bank’s net interest margin was steady at 4.32%, and is expected to remain “range-bound” in the 2026-27 financial year, Batra said.
Gross non-performing assets fell to 1.4% of total loans at the end of March.
Provisions for bad loans plunged 89% to 9.6 billion rupees, driven by stronger recoveries and fewer new defaults.
The bank reported a treasury loss of 1.06 billion rupees, slightly narrower than the 1.57 billion rupees loss in the previous quarter, as higher bond yields and the Indian central bank’s curbs on foreign exchange positions continued to weigh on banks.
