ICICI Bank delivers healthy asset quality in Q4, eyes continued stability in FY26

The bank also said it will maintain a wait and watch situation on its unsecured portfolio

ICICI Bank reported better-than-expected results for the March quarter (Q4FY25) and stated that asset quality is expected to remain stable going forward in the current scenario. The bank also said it will maintain a wait and watch situation on its unsecured portfolio and continue to monitor it closely.

“Our corporate portfolio continues to perform well. On the retail side, secured products are doing quite well, and on the unsecured side, NPL formation has largely stabilised. We plan to adopt a wait-and-watch approach over the next couple of quarters. The credit cost we are currently reporting already factors in much of this, with the credit cost remaining below 30 basis points. Overall, things are looking quite stable as we step into the new financial year. That said, we will remain vigilant and monitor global trends, domestic developments, and trade-related risks—but as of now, the situation appears steady,” the management stated during the earnings conference call.

ALSO READ: As RBI turns dovish, ICICI Bank flags potential margin impact in the long haul

Speaking about the unsecured portfolio specifically, the management said that the performance of loans originated around 18 months ago has shown signs of stabilisation, providing a reasonable degree of comfort. However, they will continue to track trends closely in the coming quarters.

As of March 31, 2025, ICICI Bank's gross non-performing asset (NPA) ratio declined to 1.67 percent, compared to 1.96 percent in the previous quarter and 2.16 percent in the same quarter last year.

The bank’s net NPA ratio stood at 0.39 percent for the March quarter, down from 0.42 percent in the previous quarter.

Provisions (excluding tax-related provisions) rose to Rs 891 crore in Q4FY25, compared to Rs 718 crore in Q4FY24 and Rs 1,227 crore in Q3FY25. The provisioning coverage ratio on non-performing loans was 76.2 percent as of March 31, 2025.