IBICICI Bank532174Earnings call transcript

Transcripts of media and analyst calls on Q2 FY2027 results

ICICI Bank has shared transcripts of its media conference call and earnings call on results for the quarter and six months ended September 30, 2026.

By ScoutQuest · Fri 23 Oct 2026, 6:03 PM IST · 4 min read

Net interest income

up 17.7% y-o-y to ₹25,339 crore

Profit after tax

up 20.1% to ₹14,843 crore

Net NPA ratio

0.3%

What was shared

The update is the transcript of two calls — the media conference call held on October 17, 2026 and the earnings call with analysts and investors — on the results for the quarter and six months ended September 30, 2026. The Board approved the results the same day. The figures below are what management stated on those calls.

Profit and capital

• Net interest income grew 17.7% year-on-year to ₹25,339 crore in Q2-2027.
• Net interest margin was 4.18% in Q2-2027, against 4.36% in Q1-2027; excluding the benefit of interest on a tax refund, Q1-2027 NIM would have been 4.28%.
• Fee income grew 20.1% year-on-year to ₹7,795 crore.
• Operating expenses grew 8.5% year-on-year to ₹12,811 crore.
• Core operating profit grew 21.8% year-on-year to ₹20,805 crore; excluding dividend from subsidiaries it grew 25% to ₹20,342 crore.
• Provisions (excluding provision for tax) were ₹851 crore.
• Profit before tax excluding treasury grew 23.4% year-on-year to ₹19,954 crore, and profit after tax grew 20.1% year-on-year to ₹14,843 crore.
• Standalone RoE was 16.6%. Net worth was about ₹3.6 lakh crore; the CET-1 ratio was 16.01% and the total capital adequacy ratio 16.68% at September 30, 2026.

Deposits and FCNR(B)

• Total period-end deposits increased 27.1% year-on-year and 11.8% quarter-on-quarter. Gross FCNR(B) deposits of about $18 billion were mobilised under the RBI's swap facility.
• Average deposits increased 21.2% year-on-year and 8% sequentially; average current and savings account deposits rose 10.7% year-on-year.
• Management said period-end deposits excluding FCNR(B) grew about 17% year-on-year and 3.1% sequentially.
• Of the FCNR(B) mop-up, leveraged deposits were close to $10 billion, leverage with partner banks about $3.63 billion, and retail customers who took no leverage about $4.34 billion.
• 145 branches were opened in H1-2027; the network was 7,656 branches and 12,143 ATMs and cash recycling machines at September 30, 2026.

Loans

• The total loan portfolio grew 30% year-on-year and 12.3% quarter-on-quarter; excluding leverage on FCNR(B) deposits, it grew 24% year-on-year and 7.3% sequentially, management said.
• Retail and rural loans grew 14.8% year-on-year; mortgage 15.3%; personal loans 16.6%; business banking 33.8%; jewel loans 79.4%; domestic corporate 30.6%. The credit card portfolio declined 9.7% year-on-year.
• Including non-fund outstanding, the retail portfolio was 43% of the total portfolio, and about 73.2% of the corporate loan portfolio was rated 'A-' and above.

Asset quality

• Net NPA ratio was 0.3% at September 30, 2026, against 0.35% at June 30, 2026 and 0.39% at September 30, 2025.
• Gross NPA additions were ₹4,833 crore, offset by recoveries and upgrades of ₹3,620 crore, leaving net additions of ₹1,213 crore. Gross NPAs written off were ₹1,592 crore and NPAs of ₹133 crore were sold for cash.
• The provisioning coverage ratio on non-performing loans was 75%, and contingency provisions of ₹13,100 crore were held.
• Fund-based outstanding to all borrowers under resolution was ₹1,185 crore; loans and non-fund based outstanding to performing corporate borrowers rated BB and below were ₹3,547 crore.
• Management said rural and retail accounted for ₹3,700 crore of gross additions and corporate and business banking about ₹1,100 crore; recoveries were ₹2,600 crore and ₹1,000 crore respectively.

What management said on the margin

• The decline was largely because FCNR(B) inflows raised the deposit base and lowered the CASA ratio; the CASA-to-term deposit mix change accounted for about nine to ten basis points.
• The full impact is expected to be reflected in Q3, after which margins are expected to start moving up, even at current policy rates.
• Management said the repo rate could go up to 6%, probably with two more hikes of 25 basis points each.
• FCNR(B) funds are seen as a stable three-to-five year source, exempt from SLR, CRR and PSL requirements; part has been used to repay bulk deposits, part funded loan growth, and the balance is to be deployed over the next two quarters.

Other points from the call

• Third-party fee income is less than 1% of total income and bancassurance about 5% of total fee, which management said means proposed IRDAI insurance distribution guidelines would have minimal impact.
• On the credit card decline, management attributed it mainly to higher festive spends towards the end of Q2 last year and said it expects growth in Q3 while exiting riskier segments.
• On the agriculture portfolio, management said provisioning could be reversed after a final discussion with the RBI, possibly in the coming quarter or the next.

What a retail investor can note

The call describes double-digit growth in net interest income and profit after tax, a lower net NPA ratio, and large FCNR(B) inflows that management expects to support margins from the third quarter. The two soft spots discussed were the sequential dip in net interest margin and the year-on-year decline in the credit card book.

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