ICICI Bank Q4 FY26: Profit up 8.5%, ₹12 Dividend

Key takeaway from the Q4 earnings call

ICICI Bank’s Q4 FY26 commentary stayed anchored on profitability and balance-sheet discipline, even as loan growth continued to outpace deposit growth. Managing Director and CEO Sandeep Bakhshi said the bank remained focused on “risk-calibrated profitable growth”, supported by a customer-centric approach and deeper ecosystem coverage. The board also recommended a dividend of ₹12 per equity share (face value ₹2 each) for FY26, subject to shareholder approvals at the annual general meeting.

Standalone profit: PBT and PAT move higher

For the March quarter, profit before tax (excluding treasury) rose 10.1% year-on-year to ₹18,209 crore. Core operating profit increased 5.1% year-on-year to ₹18,305 crore. Profit after tax (PAT) grew 8.5% year-on-year to ₹13,702 crore.

For the full year FY26, standalone PAT came in at ₹50,147 crore, up 6.2% year-on-year. The bank also disclosed that profit before tax (excluding treasury) increased 7.1% year-on-year to ₹65,021 crore in FY26, while core operating profit rose 7.7% year-on-year to ₹70,401 crore.

Total income, NII, and margin stability

Total income for Q4 FY26 was ₹50,584.38 crore, compared with ₹49,690.87 crore in the year-ago quarter. Net interest income (NII) increased 8.4% year-on-year to ₹22,979 crore from ₹21,193 crore.

Net interest margin (NIM) for Q4 FY26 was 4.32%. Management linked quarterly margin movement to external benchmark-linked loan repricing, term deposit repricing, and seasonally lower interest reversal on the KCC portfolio. It also noted NIM for FY26 was 4.32%, unchanged from FY25.

Fees and other income: retail-led contribution

Non-interest income excluding treasury grew 5.6% year-on-year to ₹7,415 crore. Within that, fee income rose 7.5% year-on-year to ₹6,779 crore.

Management said retail, rural, and business banking customers accounted for about 78% of total fees in the quarter. Dividend income from subsidiaries was ₹631 crore in Q4 FY26 versus ₹675 crore a year ago.

Treasury swing remains a swing factor

ICICI Bank recorded a treasury loss of ₹106 crore in Q4 FY26. This compared with a loss of ₹157 crore in the prior quarter and a gain of ₹299 crore in the year-ago quarter.

The bank attributed the quarterly movement primarily to market movements and also cited the impact of capping of FX net open positions in the onshore market under recent RBI guidelines.

Deposits growth and liquidity commentary

As of March 31, 2026, total deposits were up 11.4% year-on-year and 8.1% sequentially. Average CASA deposits increased 11.3% year-on-year and 2.7% sequentially during the quarter.

Management described liquidity as “comfortable”, even as the sector continues to watch the pace of deposit mobilisation relative to credit growth.

Loan growth: portfolio expands to ₹15.54 lakh crore

ICICI Bank’s total loan portfolio grew 15.8% year-on-year to ₹15,53,893 crore as of March 31, 2026. The retail segment grew 9.5% year-on-year and comprised 50.4% of the overall loan book.

The bank’s Q4 discussion around growth was positioned around calibrated expansion rather than chasing volume, while keeping margins steady at 4.32%.

Costs and provisions: higher opex, sharply lower provisions

Operating expenses rose to ₹12,088.95 crore in Q4 FY26 from ₹10,788.76 crore in Q4 FY25.

Provisions (other than tax) and contingencies fell sharply to ₹96.16 crore in Q4 FY26 from ₹890.70 crore in the year-ago quarter, a swing that materially supported profitability for the quarter.

Consolidated performance and key subsidiaries

On a consolidated basis, PAT rose 9% year-on-year to ₹14,755 crore in Q4 FY26. For FY26, consolidated PAT was ₹54,208 crore, up 6.2% year-on-year.

The bank also disclosed profit trends across key group businesses. ICICI AMC (Ind AS) reported PAT of ₹763 crore in Q4 FY26 versus ₹692 crore in Q4 FY25. ICICI Securities (Ind AS, consolidated basis) reported PAT of ₹422 crore in Q4 FY26 versus ₹381 crore in Q4 FY25.

Branch additions and earnings call transparency

ICICI Bank added 126 branches during the March quarter, taking its network to 7,511 branches and 12,087 ATMs and cash recycling machines nationwide.

Separately, the bank said it has made audio recordings of its Q4 and full-year FY26 earnings calls publicly available on its website, offering direct access for investors and media.

Snapshot table: Q4 FY26 and FY26 numbers

Why these numbers matter for investors

Two moving parts stood out in the quarter. First, ICICI Bank’s headline profit growth was supported by a steep decline in provisions, even as operating expenses increased year-on-year. Second, margins stayed at 4.32% despite repricing dynamics, suggesting the bank held its spread in a competitive deposit market.

The other investor focus area remains the growth mix. With the loan book up 15.8% year-on-year and deposits up 11.4% year-on-year, the pace of deposit accretion and the bank’s liquidity positioning will remain key datapoints to track alongside management commentary in future quarters.

Conclusion

ICICI Bank’s Q4 FY26 results combined higher standalone profit, stable NIM at 4.32%, and continued balance-sheet expansion led by loans. The ₹12 per share dividend recommendation sets up the next milestone, with the payout subject to member approval at the ensuing annual general meeting.