ICICI Bank's corporate loan book declines sequentially on competitive pricing, seasonal factors

Sandeep Batra, Executive Director, ICICI Bank

The corporate loan book of the ICICI Bank declined on a quarterly basis due to competitive pricing and seasonal factors, said executive director Sandeep Batra during the post earnings conference call on July 19.

"We saw a decline because of, which is primarily driven by competitive pricing and of course, some of seasonal requirements of our customers," Batra said.

In April-June quarter, domestic corporate portfolio of the bank declined by 1.4 percent on a sequential basis. However, domestic corporate book grew by 7.5 percent on a yearly basis.

Batra added that corporate portfolio is about 20 percent of bank's overall portfolio, and the portfolio continues to do well.

"As long as we are able to deliver 360 for our customers, we are okay to serve them. Of course, needless to mention, they need to pass our credit thresholds," he added.

Further, he added that ner interest margins if the bank will compress further in the next quarter from 4.34 percent in the current quarter.

"We do expect the NIMs to sort of compress a little more in the next quarter," Batra said.

According to the bank's press release, Net interest margin was 4.34 percent in Q1FY26 compared to 4.41 percent in Q4FY25 and 4.36 percent in Q1FY25.

He added that the movement in the net interest income from Q4 to Q1 was primarily due to repricing of loans linked to external benchmarks, which was according to actions which RBI has taken on the rate front.

Some interest reversals on account of NPAs, seasonal additions, and Kisan credit cards, which normally happens in the first and third quarter and offset by reduction in deposit rates both on the savings and domestic, some savings and term deposits, he said.