ICICI Bank’s domestic loans grew modestly on a sequential basis in the first quarter of FY26 (Q1FY26), as global uncertainties and intense competition in low-yield segments tempered overall growth. Looking ahead, the management remains cautiously optimistic, betting on a pick-up in demand and sustained momentum in business banking and unsecured retail.
"Growth in the first quarter was moderate, reflecting global headwinds and subdued sentiment," the management said during its post-results analyst conference call. However, they added, “the monetary easing that began in Q4 and carried through into Q1 may gradually lift demand, and growth prospects can be reassessed after another quarter of data.”
Management acknowledged that corporate and home loans — traditionally low-yield segments — continue to face stiff competition, which has weighed on loan book expansion.
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On the corporate side, the bank observed a shift in borrower profile, with a decline in very high-rated (AA–) exposures and an increase in A-rated exposures, driven by pricing dynamics and borrower preferences. Management stated they remain comfortable with this risk profile, noting that the bank maintains strict controls over lower-rated exposures and evaluates corporate relationships holistically.
The unsecured retail segment — including personal loans and credit cards — is also expected to contribute more meaningfully in the coming quarters. Management expressed confidence in accelerating growth in these products by ramping up customer acquisition.
As of June 30, 2025, ICICI Bank’s total advances stood at Rs 13.64 lakh crore, while deposits grew by 12.8 percent year-on-year to Rs 16.08 lakh crore. The bank’s average CASA (current account and savings account) ratio remained healthy at 38.7 percent, though the capital adequacy ratio under Basel III norms edged down slightly to 16.31 percent, compared to 16.55 percent in the March quarter.
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