ICICI BANK LTD
For the period ended Sep 22, 2026. Filed Sep 22, 2026.
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Sep 22, 2026 · Filed Sep 22, 2026
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Contents
Operating Results Data
The following table sets forth, for the periods indicated, our summary operating results.
| Year ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 | ||||||
| (in millions, except per common share data) | ||||||
| Selected income statement data: | ||||||
| Interest earned(1) | Rs. | 1,863,315 | Rs. | 1,952,185 | JPY | 3,572,499 |
| Interest expended | (890,277) | (890,286) | (1,629,223) | |||
| Net interest income | 973,038 | 1,061,899 | 1,943,275 | |||
| Other income(2) | 1,082,555 | 1,168,999 | 2,139,268 | |||
| Net total income | 2,055,593 | 2,230,898 | 4,082,543 | |||
| Operating expenses | ||||||
| Payments to and provisions for employees | (236,299) | (252,586) | (462,232) | |||
| Expenses pertaining to insurance business | (738,062) | (818,364) | (1,497,606) | |||
| Other operating expenses(3) | (303,639) | (332,986) | (609,364) | |||
| Total operating expenses | (1,278,000) | (1,403,936) | (2,569,203) | |||
| Operating profit before provisions | 777,593 | 826,962 | 1,513,340 | |||
| Provisions and contingencies (excluding provision for tax) | (49,058) | (56,390) | (103,194) | |||
| Share of profit in associates | 1,507 | 2,629 | 4,811 | |||
| Profit before tax | 730,042 | 773,201 | 1,414,958 | |||
| Provision for tax | (184,348) | (193,839) | (354,725) | |||
| Profit after tax | 545,694 | 579,362 | 1,060,232 | |||
| Minority interest | (35,402) | (37,285) | (68,232) | |||
| Net profit (after minority interest) | Rs. | 510,292 | Rs. | 542,077 | JPY | 992,001 |
| Profitability: | ||||||
| Net profit (after minority interest) as a percentage of: | ||||||
| Average total assets | 2.05% | 2.02% | ||||
| Average stockholders’ equity | 17.74 | 15.90 | ||||
| Per common share: | ||||||
| Earnings-basic(4) | Rs. | 72.41 | Rs. | 75.89 | JPY | 138.88 |
| Earnings-diluted(5) | 71.14 | 74.77 | 136.83 | |||
| Book value(6) | Rs. | 422.08 | Rs. | 486.37 | JPY | 890.06 |
| Dividend payout ratio(7) | 15.35% | 15.85% | — | |||
| Cost-to-income ratio(8) | 62.17 | 62.93 | — | |||
| Cost-to-average assets ratio(9) | 5.13 | 5.24 | — | |||
| Capital | ||||||
| Average stockholders’ equity as a percentage of average total assets(10) | 11.54% | 12.72% | ||||
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| (1) | Interest earned includes interest on income tax refunds of Rs. 2.0 billion and Rs. 7.3 billion for fiscal 2025 and 2026 respectively. |
| (2) | Includes income from treasury-related activities (net) amounting to Rs. 91.8 billion and Rs. 92.7 billion for fiscal 2025 and 2026 respectively. |
| (3) | Includes depreciation on fixed assets and other general office expenses. |
| (4) | Earnings per share is computed based on the weighted average number of shares and represents net profit/(loss) per share before dilutive impact. |
| (5) | Earnings per share is computed based on the weighted average number of shares and represents net profit/(loss) per share adjusted for full dilution. Options to purchase 10,875,037 and 8,722,239 equity shares granted to employees at a weighted average exercise price of Rs. 1,022.4 and Rs. 1,355.7 were outstanding at year-end fiscal 2025 and 2026 respectively but were not included in the computation of diluted earnings per share as these options were anti-dilutive. |
| (6) | Represents capital, employees’ stock options outstanding and reserves and surplus reduced by deferred tax asset and goodwill divided by equity shares outstanding at year-end fiscal 2026. |
| (7) | Represents the ratio of total dividends paid on equity share capital as a percentage of net profit (after minority interest). Dividends for a fiscal year are normally paid in the following year. |
| (8) | Represents the ratio of operating expenses to total income. Total income represents the sum of net interest income and other income. |
| (9) | Represents the ratio of operating expenses to average total assets. |
| (10) | Represents the ratio of average stockholders’ equity to average total assets. Average stockholders’ equity represents average capital, employees’ stock options outstanding and reserves and surplus reduced by preference share capital. Average total assets represents total of average interest-earning assets and average non-interest earning assets. |
(1) Consolidated Income Information
| (a) | Net Interest Income |
The following table sets forth, for the periods indicated, the principal components of net interest income.
| Year ended March 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 · 2026/2025 % change | |||||||
| (in millions, except percentages) | |||||||
| Interest earned(1) | Rs. | 1,863,315 | Rs. | 1,952,185 | JPY | 3,572,499 | 4.8% |
| Interest expense | (890,277) | (890,286) | (1,629,223) | 0.0 | |||
| Net interest income | Rs. | 973,038 | Rs. | 1,061,899 | JPY | 1,943,275 | 9.1% |
| (1) | Tax exempt income has not been re-calculated on a tax-equivalent basis. |
| (b) | Yields, Spreads and Margins |
The following table sets forth, for the periods indicated, the yields, spreads and net interest margins on interest-earning assets.
| Year ended March 31, | ||||
|---|---|---|---|---|
| 2025 · 2026 | ||||
| (in millions, except percentages) | ||||
| Interest earned(1) | Rs. | 1,863,442 | Rs. | 1,952,329 |
| Average interest-earning assets | 22,053,078 | 24,075,951 | ||
| Interest expense | 890,277 | 890,286 | ||
| Average interest-bearing liabilities | 17,287,355 | 18,578,783 | ||
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| Year ended March 31, | ||
|---|---|---|
| 2025 | 2026 | |
| (in millions, except percentages) | ||
| Average total assets | 24,927,623 | 26,792,423 |
| Average interest-earning assets as a percentage of average total assets | 88.47% | 89.86% |
| Average interest-bearing liabilities as a percentage of average total assets | 69.35 | 69.34 |
| Average interest-earning assets as a percentage of average interest-bearing liabilities | 127.57 | 129.59 |
| Yield | 8.45 | 8.11 |
| Rupee | 8.68 | 8.39 |
| Foreign currency | 5.47 | 4.66 |
| Cost of funds | 5.15 | 4.79 |
| Rupee | 5.24 | 4.89 |
| Foreign currency | 4.00 | 3.48 |
| Spread(2) | 3.30 | 3.32 |
| Rupee | 3.44 | 3.50 |
| Foreign currency | 1.48 | 1.18 |
| Net interest margin(3) | 4.41 | 4.41 |
| Rupee | 4.57 | 4.59 |
| Foreign currency | 2.33% | 2.15% |
| (1) | We have re-calculated tax-exempt income on a tax-equivalent basis. The impact of re-calculation of tax-exempt income on a tax equivalent basis was Rs. 144 million for fiscal 2026 as compared to Rs. 127 million for fiscal 2025. |
| (2) | Spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. Yield on average interest-earning assets is the ratio of interest earned to average interest-earning assets. Cost of average interest-bearing liabilities is the ratio of interest expense to average interest-bearing liabilities. |
| (3) | Net interest margin is the ratio of net interest income to average interest-earning assets. The difference in net interest margin and spread arises due to the difference in amount of average interest-earning assets and average interest-bearing liabilities. If average interest-earning assets exceed average interest-bearing liabilities, net interest margin is greater than the spread and if average interest-bearing liabilities exceed average interest-earning assets, net interest margin is less than the spread. |
Net interest income increased by 9.1% from Rs. 973.0 billion in fiscal 2025 to Rs. 1,062.0 billion in fiscal 2026, reflecting an increase of 9.2% in the average volume of interest-earning assets.
| (i) | Net Interest Margin |
The net interest margin on the rupee portfolio increased by 2 basis points from 4.57% in fiscal 2025 to 4.59% in fiscal 2026 and the net interest margin on the foreign currency portfolio decreased by 18 basis points from 2.33% in fiscal 2025 to 2.15% in fiscal 2026. Overall net interest margin was at the same level of 4.41% in fiscal 2025 and fiscal 2026. The yield on average interest-earning assets decreased by 34 basis points from 8.45% in fiscal 2025 to 8.11% in fiscal 2026. The cost of funds decreased by 36 basis points from 5.15% in fiscal 2025 to 4.79% in fiscal 2026.
The yield on the rupee portfolio decreased by 29 basis points from 8.68% in fiscal 2025 to 8.39% in fiscal 2026 primarily due to the following:
| ● | The yield on rupee advances decreased by 55 basis points from 9.98% in fiscal 2025 to 9.43% in fiscal 2026. The yield on rupee investments decreased by 16 basis points from 7.05% in fiscal 2025 to 6.89% in fiscal 2026. The yield on rupee other interest-earning assets increased by 2 basis points from 2.51% in fiscal 2025 to 2.53% in fiscal 2026. |
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| ● | The yield on rupee advances decreased primarily due to repo rate reduction and incremental lending at lower yields. |
At March 31, 2026, of the total India domestic loan book of ICICI Bank on a non-consolidated basis, 31% had fixed interest rates, 56% had interest rates linked to the repo rate and other external benchmarks and 13% had interest rates linked to our marginal cost of funds based lending rate and other, older benchmarks. The differential movements in the external benchmark rates compared to cost of funds impact our net interest income and net interest margin. The Reserve Bank of India reduced the repo rate by 125 basis points from 6.50% in February 2025 to 5.25% (25 basis points in February 2025, 25 basis points in April 2025, 50 basis points in June 2025 and 25 basis points in December 2025). Our marginal cost of funds based lending rate declined by 75 basis points from 9.10% to 8.35% (25 basis points in April 2025, 10 basis points in May 2025, 25 basis points in June 2025 and 15 basis points in September 2025). These reductions resulted in reduction in yield on the Bank’s loan portfolio in fiscal 2026. Future movement in the yield on advances will depend on the increase or decrease in the repo rate, our marginal cost of funds based lending rate and interest rates generally prevailing in the banking sector. See also “- II. - 3. - (d) -(iv) Loan Pricing”.
| ● | The yield on interest-earning rupee government securities decreased primarily due to new investment in government securities at lower market yields. The yield on investments, other than government securities, decreased primarily due to a decrease in yield on commercial papers and pass-through certificates and an increase in the proportion of certificate of deposits, which are lower yielding. |
| ● | The yield on other interest-earning rupee assets increased by 2 basis points from 2.51% in fiscal 2025 to 2.53% in fiscal 2026, primarily due to an increase in average balance with the U.S. Federal Reserve System, decrease in proportion of Rural Infrastructure Development Fund (“RIDF”) deposits, which are lower yielding and decrease in average balance with the Reserve Bank of India, which does not earn any interest, offset, in part, by a decrease in yield on balance with the U.S. Federal Reserve System and increase in proportion of call and term money lending. |
| ● | Interest on tax refunds increased from Rs. 2.0 billion in fiscal 2025 to Rs. 7.3 billion in fiscal 2026. The receipt, amount and timing of such income depend on the nature and timing of determinations by tax authorities and hence are neither consistent nor predictable. |
The cost of funds for the rupee portfolio decreased by 35 basis points from 5.24% in fiscal 2025 to 4.89% in fiscal 2026 primarily due to the following factors:
| ● | The cost of rupee deposits decreased by 28 basis points from 4.94% in fiscal 2025 to 4.66% in fiscal 2026 due to a decrease in cost of savings and term deposits. |
The cost of rupee term deposits decreased by 20 basis points from 6.68% in fiscal 2025 to 6.48% in fiscal 2026. The cost of savings account deposits decreased by 56 basis points from 3.16% in fiscal 2025 to 2.60% in fiscal 2026. The average rupee current account and savings account deposits as a percentage of total average rupee deposits were at a similar level of 39.3% in fiscal 2025 and 39.2% in fiscal 2026. From the last quarter of fiscal 2025 to last quarter of fiscal 2026, the Reserve Bank of India reduced the repo rate by a total of
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125 basis points from 6.50% to 5.25%. This resulted in lower deposit costs in fiscal 2026 due to repricing of term deposits at lower rates and reduction of savings account interest rates.
| ● | The cost of rupee borrowings decreased by 57 basis points from 7.25% in fiscal 2025 to 6.68% in fiscal 2026 primarily due to a decrease in the cost of rupee borrowings of ICICI Bank, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited and ICICI Securities Limited. The cost of rupee borrowings of ICICI Bank decreased primarily due to a decrease in the cost of interbank participatory certificate, Reserve Bank of India borrowings under the liquidity adjustment facility and the refinance and redemption of higher cost privately placed deep discount bonds. The cost of rupee borrowings of ICICI Securities Primary Dealership Limited decreased primarily due to a decrease in cost of Reserve Bank of India borrowings, repo borrowings, call, notice and term borrowings. The cost of rupee borrowings of ICICI Home Finance Company Limited decreased primarily due to maturity of higher cost borrowings and fresh borrowings at lower cost. The cost of rupee borrowings of ICICI Securities Limited decreased primarily due to a decrease in cost of commercial paper borrowings. |
The total average rupee deposits of the Bank as a percentage of total average rupee funding increased from 91.4% in fiscal 2025 to 93.4% in fiscal 2026.
Net interest margin on the foreign currency portfolio decreased by 18 basis points from 2.33% in fiscal 2025 to 2.15% in fiscal 2026. Average interest-earning foreign currency assets increased by 14.0% from Rs. 1,586.0 billion in fiscal 2025 to Rs. 1,807.3 billion in fiscal 2026. Average interest-bearing foreign currency liabilities increased by 4.2% from Rs. 1,247.1 billion in fiscal 2025 to Rs. 1,300.1 billion in fiscal 2026. During fiscal 2026, the Bank continued to convert a part of its rupee liquidity into foreign currency and deploy the same in foreign currency placements/investments. This has resulted in average foreign currency assets being significantly higher than average foreign currency liabilities.
The yield on our foreign currency portfolio decreased by 81 basis points from 5.47% in fiscal 2025 to 4.66% in fiscal 2026, primarily due to the following:
| ● | The yield on average foreign currency interest-earning assets of the Bank decreased by 92 basis points from 5.58% in fiscal 2025 to 4.66% in fiscal 2026, primarily due to a decrease in the yield on average advances and investments. The yield on advances decreased by 124 basis points from 6.18% in fiscal 2025 to 4.94% in fiscal 2026 primarily due to reduction in benchmark SOFR rate. |
| ● | The yield on average interest-earning assets of ICICI Bank UK PLC decreased primarily due to a decrease in yield on average advances and other interest earning assets, offset, in part, by an increase in yield of average investments. |
| ● | The yield on average interest-earning assets of ICICI Bank Canada decreased primarily due to a decrease in yield on average advances, investments and other interest earning assets. |
The cost of funds for the foreign currency portfolio decreased by 52 basis points from 4.00% in fiscal 2025 to 3.48% in fiscal 2026, due to decrease in cost of foreign currency deposits and borrowings.
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| ● | The cost of funds of ICICI Bank Canada, ICICI Bank UK PLC and ICICI Bank decreased in fiscal 2026 as compared to fiscal 2025 primarily due to a decrease in cost of borrowings and deposits due to decreases in benchmark interest rates. |
Our yield on advances, interest earned, net interest income and net interest margin are impacted by systemic liquidity conditions, movements in interest rates, the competitive environment, the level of additions to non-performing loans, regulatory developments, monetary policy and economic and geopolitical factors. These developments may have an adverse impact on the net interest margin. The timing and amount of recoveries and interest on income tax refund is uncertain.
| (ii) | Interest-Earning Assets |
The average volume of interest-earning assets increased by 9.2% from Rs. 22,053.2 billion in fiscal 2025 to Rs. 24,076.0 billion in fiscal 2026. The increase in average interest-earning assets was primarily due to an increase in average advances by Rs. 1,314.5 billion, average investments by Rs. 513.4 billion and increase in average other interest-earning assets by Rs. 195.0 billion.
The average volume of rupee interest-earning assets increased by 8.8% from Rs. 20,467.1 billion in fiscal 2025 to Rs. 22,268.7 billion in fiscal 2026 primarily due to an increase in average advances and investments. Average rupee advances increased by 10.8% from Rs. 12,747.8 billion in fiscal 2025 to Rs. 14,127.7 billion in fiscal 2026. Average rupee investments increased by 7.4% from Rs. 6,626.6 billion in fiscal 2025 to Rs. 7,117.7 billion in fiscal 2026, primarily due to an increase in investments in securities other than Government of India securities. Average other rupee interest-earning assets decreased by 6.4% from Rs. 1,092.7 billion in fiscal 2025 to Rs. 1,023.3 billion in fiscal 2026, primarily due to a decrease in balances with the Reserve Bank of India to maintain cash reserve ratio and Rural Infrastructure Development Fund deposits, offset, in part, by an increase in call money lent.
The average volume of foreign currency interest-earning assets increased by 14.0% from Rs. 1,586.0 billion in fiscal 2025 to Rs. 1,807.3 billion in fiscal 2026. Average foreign currency advances decreased by 6.5% from Rs. 1,011.7 billion in fiscal 2025 to Rs. 946.2 billion in fiscal 2026. Average other foreign currency interest-earning assets increased by 60.5% from Rs. 437.2 billion in fiscal 2025 to Rs. 701.7 billion in fiscal 2026, primarily due to an increase in balances with U.S. Federal Reserve. Average foreign currency investments increased by 16.3% from Rs. 137.1 billion in fiscal 2025 to Rs. 159.3 billion in fiscal 2026.
| (iii) | Interest-Bearing Liabilities |
Average interest-bearing liabilities increased by 7.5% from Rs. 17,287.4 billion in fiscal 2025 to Rs. 18,578.8 billion in fiscal 2026, primarily due to an increase in average deposits by Rs. 1,456.4 billion, offset, in part, by a decrease in average borrowings by Rs. 164.9 billion.
Average interest-bearing rupee liabilities increased by 7.7% from Rs. 16,040.2 billion in fiscal 2025 to Rs. 17,278.7 billion in fiscal 2026. Average rupee time deposits increased by 9.8% from Rs. 8,474.3 billion in fiscal 2025 to Rs. 9,302.9 billion in fiscal 2026. Average rupee current account and savings account deposits increased by 9.1% from Rs. 5,494.6 billion in fiscal 2025 to Rs. 5,995.4 billion in fiscal 2026. Average rupee borrowings
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decreased by 4.4% from Rs. 2,071.3 billion in fiscal 2025 to Rs. 1,980.4 billion in fiscal 2026. Average borrowings of ICICI Bank decreased primarily due to a decrease in interbank participatory certificates, privately placed bonds, bullion borrowings, term money borrowings and refinance borrowings.
Average interest-bearing foreign currency liabilities increased by 4.2% from Rs. 1,247.1 billion in fiscal 2025 to Rs. 1,300.1 billion in fiscal 2026 due to an increase in time deposits and current account deposits, offset, in part, by a decrease in borrowings. Average foreign currency borrowings decreased by 13.9% from Rs. 533.9 billion in fiscal 2025 to Rs. 459.9 billion in fiscal 2026, primarily due to a decrease in foreign currency borrowings of ICICI Bank. Average foreign currency deposits increased by 17.8% from Rs. 713.2 billion in fiscal 2025 to Rs. 840.2 billion in fiscal 2026. Average foreign currency deposits of ICICI Bank increased primarily due to an increase in foreign currency non-resident deposits. Average foreign currency deposits of ICICI Bank UK PLC increased primarily due to an increase in corporate deposits. Average foreign currency deposits of ICICI Bank Canada increased primarily due to foreign exchange translation effect. In Canadian dollar (“CAD”) terms, deposits decreased primarily due to decrease in term deposits.
See also “- 3. - (3) - (e) Our banking and trading activities are particularly vulnerable to interest rate risk and movements in interest rates could adversely affect our net interest margin, the value of our fixed-income portfolio, our income from treasury operations, the quality of our loan portfolio and our financial performance”.
| (c) | Other Income |
The following table sets forth, for the periods indicated, the principal components of other income.
| Year ended March 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 · 2026/2025 % change | |||||||
| (in millions, except percentages) | |||||||
| Commission, exchange and brokerage | Rs. | 277,662 | Rs. | 293,302 | JPY | 536,743 | 5.6% |
| Income from treasury-related activities (net) | 91,846 | 92,725 | 169,687 | 1.0 | |||
| -Profit/(loss) on exchange/derivatives transactions (net) | 39,505 | 53,072 | 97,122 | 34.3 | |||
| -Profit/(loss) on other treasury-related activities(1) | 52,341 | 39,653 | 72,565 | (24.2) | |||
| Profit/(loss) on sale of land, buildings and other assets (net) | 439 | 2,886 | 5,281 | — | |||
| Premium and other operating income from insurance business | 709,008 | 776,242 | 1,420,523 | 9.5 | |||
| Miscellaneous income | 5,107 | 6,473 | 11,846 | 26.7 | |||
| -Share of profit in associates | 1,507 | 2,629 | 4,811 | 74.4 | |||
| -Others | 3,600 | 3,844 | 7,035 | 6.8 | |||
| Total other income (including share of profit in associates) | Rs. | 1,084,062 | Rs. | 1,171,628 | JPY | 2,144,079 | 8.1% |
| (1) | Includes profit/(loss) on the sale of investments and on revaluation of investments. |
Other income primarily includes income pertaining to our insurance business, commission, exchange and brokerage income, profit/(loss) on treasury-related activities and other miscellaneous income.
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Other income (including share of profit in associates) increased by 8.1% from Rs. 1,084.1 billion in fiscal 2025 to Rs. 1,171.6 billion in fiscal 2026, primarily due to an increase in net earned premium and other operating income relating to insurance business, an increase in commission, exchange and brokerage income and an increase in income from treasury related activities.
| (i) | Commission, Exchange and Brokerage |
Commission, exchange and brokerage income primarily includes fees from our banking business as well as fee and brokerage income of our securities brokerage, asset management and private equity fund management subsidiaries. The fee income of our banking business includes fees from retail customers such as lending-linked fees and transaction banking fee such as credit card related fees, debit card related fees and service charges on retail deposit accounts, and commercial banking fees, such as lending linked fees, and transaction banking fees such as fees on cash management services, commission on bank guarantees, letters of credit and bills discounting.
Commission, exchange and brokerage income increased from Rs. 277.7 billion in fiscal 2025 to Rs. 293.3 billion in fiscal 2026, primarily due to an increase in transaction banking fees, lending-linked fees, and fund management fees. Transaction banking fees increased from Rs. 134.4 billion in fiscal 2025 to Rs. 137.9 billion in fiscal 2026 primarily due to an increase in fee income from debit cards. Lending-linked fees increased from Rs. 48.2 billion in fiscal 2025 to Rs. 55.3 billion in fiscal 2026. Fund management fees increased from Rs. 47.9 billion in fiscal 2025 to Rs. 59.0 billion in fiscal 2026. Securities brokerage income decreased from Rs. 20.7 billion in fiscal 2025 to Rs. 16.6 billion in fiscal 2026. Third party products distribution fees increased from Rs. 11.7 billion in fiscal 2025 to Rs. 11.9 billion in fiscal 2026.
| (ii) | Income from Treasury-Related Activities (Net) |
Income from treasury-related activities includes income from the sale of investments and the revaluation of investments on account of changes in unrealized profit/(loss) in the fixed income, equity and preference share portfolio, units of venture capital and private equity funds, units of mutual funds and security receipts issued by asset reconstruction companies. Further, it also includes income from foreign exchange transactions, consisting of various foreign exchange and derivatives transactions with clients, including options and swaps.
Income from treasury-related activities increased from Rs. 91.8 billion in fiscal 2025 to Rs. 92.7 billion in fiscal 2026.
Income from our equity portfolio was at similar level of Rs. 27.3 billion in fiscal 2025 and Rs. 27.4 billion in fiscal 2026.
There was a gain of Rs. 8.4 billion in our government securities portfolio and other fixed income positions in fiscal 2026 primarily due to softening of yields on government securities and higher trading gains, as compared to a gain of Rs. 17.7 billion in fiscal 2025.
Income from foreign exchange transactions, including transactions with clients and margins on derivatives transactions with clients, increased from Rs. 39.5 billion in fiscal 2025 to Rs. 53.1 billion in fiscal 2026.
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| (iii) | Premium and Other Operating Income from Our Insurance Business |
Premium and other operating income from our insurance business includes net premium income, fee and commission income, surrender charges and income on foreclosure of policies. Premium and other operating income relating to insurance business increased by 9.5% from Rs. 709.0 billion in fiscal 2025 to Rs. 776.2 billion in fiscal 2026 due to an increase in income from both our life insurance and general insurance business.
The net premium income of our life insurance subsidiary increased by 12.4% from Rs. 471.9 billion in fiscal 2025 to Rs. 530.4 billion in fiscal 2026. The premium income (gross of premium on reinsurance ceded) of ICICI Prudential Life Insurance Company Limited increased by 8.5% from Rs. 489.5 billion in fiscal 2025 to Rs. 531.3 billion in fiscal 2026 primarily due to an increase in group premiums and retail renewal premiums. Net group premiums increased by 16.4% from Rs. 134.1 billion in fiscal 2025 to Rs. 156.1 billion in fiscal 2026. The net retail renewals premium increased by 7.5% from Rs. 255.1 billion in fiscal 2025 to Rs. 274.3 billion in fiscal 2026. Premiums on reinsurance ceded increased by 5.8% from Rs. 16.9 billion in fiscal 2025 to Rs. 17.9 billion in fiscal 2026. Fee and other life insurance-related income of our life insurance subsidiary increased marginally by 1.5% from Rs. 26.6 billion in fiscal 2025 to Rs. 27.0 billion in fiscal 2026.
Income from our general insurance business increased by 12.4% from Rs. 210.5 billion in fiscal 2025 to Rs. 236.7 billion in fiscal 2026. Gross premium income of our general insurance subsidiary increased from Rs. 282.6 billion in fiscal 2025 to Rs. 306.2 billion in fiscal 2026 primarily due to an increase in health and motor line of business. Effective October 1, 2024, pursuant to the IRDAI Master Circular on General Insurance dated June 11, 2024, premium on long-term products is recognized proportionately over the policy period on a 1/n basis, rather than up-front for the full policy term. Premiums on reinsurance ceded decreased by 3.4% from Rs. 75.0 billion in fiscal 2025 to Rs. 72.4 billion in fiscal 2026.
| (iv) | Miscellaneous Income |
Miscellaneous income increased from Rs. 5.1 billion in fiscal 2025 to Rs. 6.5 billion in fiscal 2026, primarily due to increase in share of profit in associates.
| (d) | Operating Expense |
The following table sets forth, for the periods indicated, the principal components of operating expense.
| Year ended March 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 · 2026/2025 % change | |||||||
| (in millions, except percentages) | |||||||
| Payments to and provisions for employees | Rs. | 236,299 | Rs. | 252,586 | JPY | 462,232 | 6.9% |
| Depreciation on own property | 25,972 | 30,303 | 55,454 | 16.7 | |||
| Auditor’s fees and expenses | 349 | 382 | 699 | 9.5 | |||
| Expenses pertaining to insurance business | 738,062 | 818,364 | 1,497,606 | 10.9 | |||
| Other operating expenses | 277,318 | 302,301 | 553,211 | 9.0 | |||
| Total operating expenses | Rs. | 1,278,000 | Rs. | 1,403,936 | JPY | 2,569,203 | 9.9% |
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Operating expenses primarily include expenses relating to our insurance business, payments to and provisions for employees and other operating expenses. Operating expenses increased by 9.9% from Rs. 1,278.0 billion in fiscal 2025 to Rs. 1,403.9 billion in fiscal 2026 primarily due to an increase in payments to and provisions for employees and expenses relating to our insurance business.
| (i) | Payments to and Provisions for Employees |
Employee expenses increased by 6.9% from Rs. 236.3 billion in fiscal 2025 to Rs. 252.6 billion in fiscal 2026. Our employee base, including sales executives, employees on fixed-term contracts and interns, decreased from 182,665 at year-end fiscal 2025 to 174,666 at year-end fiscal 2026.
The new Labour Codes were notified by the government during November 2025, pursuant to which ICICI Group charged an amount of Rs. 2.1 billion to the profit and loss account based on certain estimates and assumptions. The supporting rules and certain key clarifications are awaited, and the interpretations and industry practices are still developing. The above impact estimates will be re-assessed and finalized based on the final rules, industry practices and any revisions to ICICI Group’s staff emoluments from time to time.
The employee expenses of ICICI Bank increased by 8.7% from Rs. 165.4 billion in fiscal 2025 to Rs. 179.7 billion in fiscal 2026. Employee expenses increased primarily due to an increase in salary cost, provision for performance bonus, performance-linked retention pay, provision for retirement benefit obligations and fair value accounting of employee stock options. Salary cost increased primarily due to annual increments and promotions, offset, in part, by decrease in average staff strength. The average employee base of ICICI Bank, including sales executives, employees on fixed-term contracts and interns, decreased by 4.6% from 134,567 employees in fiscal 2025 to 128,311 employees in fiscal 2026. The provision for retirement benefit obligations increased primarily due to decrease in valuation of underlying assets, offset, in part, by increase in discount rate linked to G-Sec yields.
The employee expenses of ICICI Lombard General Insurance Company Limited increased by 13.8% from Rs. 15.2 billion in fiscal 2025 to Rs. 17.3 billion in fiscal 2026. The employee expenses of ICICI Home Finance Company Limited increased by 21.4% from Rs. 4.7 billion in fiscal 2025 to Rs. 5.8 billion in fiscal 2026.
| (ii) | Depreciation |
Depreciation on owned properties increased by 16.7% from Rs. 26.0 billion in fiscal 2025 to Rs. 30.3 billion in fiscal 2026.
| (iii) | Other Operating Expenses |
Other operating expenses primarily include rent, taxes and lighting, advertising and publicity, repairs and maintenance, direct marketing agency expenses, premiums paid on purchases of priority sector lending certificates and other expenditures. Other operating expenses for ICICI Group increased by 9.0% from Rs. 277.3 billion in fiscal 2025 to Rs. 302.3 billion in fiscal 2026.
Other operating expenses of the Bank increased by 13.0% from Rs. 237.0 billion in fiscal 2025 to Rs. 267.9 billion in fiscal 2026 primarily due to an increase in premiums paid towards Priority Sector Lending Certificates, repairs and maintenance, technology related
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expenses, direct marketing agency expenses, rents, taxes and lighting, insurance expenses, offset, in part, by a decrease in advertisement and publicity.
Other operating expenses of our asset management subsidiary increased from Rs. 7.8 billion in fiscal 2025 to Rs. 8.9 billion in fiscal 2026 primarily due to an increase in business volume linked alternative investment funds (“AIFs”)/portfolio management services (“PMS”) brokerage and other overheads.
Other operating expenses of our home finance subsidiary increased from Rs. 4.2 billion in fiscal 2025 to Rs. 4.7 billion in fiscal 2026 primarily due to an increase in customer acquisition expenses, professional and legal expenses, travelling and conveyance and other administrative expenses.
Other operating expenses of our life insurance subsidiary decreased from Rs. 20.2 billion in fiscal 2025 to Rs. 12.8 billion in fiscal 2026 primarily due to a decrease in advertisement expenses.
Other operating expenses of our securities subsidiary decreased from Rs. 8.8 billion in fiscal 2025 to Rs. 6.7 billion in fiscal 2026 primarily due to a decrease in partner payouts, marketing expenses and rental costs.
| (iv) | Expenses Related to Our Insurance Business |
Expenses related to our insurance business include claims and benefit payouts, commission expenses and reserves for actuarial liability (including the investible portion of the premium on unit-linked policies of our life insurance business). Expenses relating to our insurance business were Rs. 738.1 billion in fiscal 2025 and Rs. 818.4 billion in fiscal 2026.
The expenses related to our life insurance subsidiary increased by 9.8% from Rs. 543.8 billion in fiscal 2025 to Rs. 597.1 billion in fiscal 2026 primarily due to an increase in claims paid from Rs. 91.4 billion in fiscal 2025 to Rs. 151.4 billion in fiscal 2026, commission paid from Rs. 48.6 billion in fiscal 2025 to Rs. 57.3 billion in fiscal 2026, offset, in part, by a decrease in provisions for policy holder liabilities (non-linked) from Rs. 171.7 billion in fiscal 2025 to Rs. 148.7 billion in fiscal 2026.
The reserves for the actuarial liability of the life insurance business for the investible portion of the premium on unit-linked policies increased by 2.6% from Rs. 233.9 billion in fiscal 2025 to Rs. 240.0 billion in fiscal 2026 in line with business number. The investible portion of the premium on linked policies of our life insurance business represents the amount of premium, including renewal premium received on linked policies of life insurance business invested, after deducting charges and the premium for risk coverage, in the underlying fund.
The expenses related to our general insurance subsidiary increased from Rs. 194.3 billion in fiscal 2025 to Rs. 221.3 billion in fiscal 2026 primarily due to an increase in commission expenses and claims and benefit payouts. Net commission expense increased from Rs. 38.4 billion in fiscal 2025 to Rs. 44.8 billion in fiscal 2026 primarily due to an increase in commission expense majorly on motor and health line of business. Claims/benefits paid increased by 13.2% from Rs. 139.9 billion in fiscal 2025 to Rs. 158.3 billion in fiscal 2026 due to an increase in net incurred claims in motor and health line of business. Loss ratio (net claim incurred/net premium earned) increased from 70.6% at year-
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end fiscal 2025 to 71.1% at year-end fiscal 2026 due to increase in claim for motor line of business.
See also “- II. - 3. - (b) -(xii) Insurance”.
| (e) | Provisions and Contingencies (Excluding Provisions for Tax) |
| (i) | Provisions for Non-Performing Loans and Restructured Loans |
The Bank classifies its assets, including those in overseas branches, as performing and non-performing in accordance with the Reserve Bank of India guidelines. The Bank’s home finance subsidiary classifies its loans and other credit facilities in accordance with the guidelines of the Reserve Bank of India. Under the Reserve Bank of India guidelines, non-performing assets are classified into sub-standard, doubtful and loss assets based on certain pre-defined criteria. Loans held at overseas branches that are identified as impaired as per host country regulations, but which are standard as per Reserve Bank of India guidelines, are identified as non-performing assets to the extent the loan amount is outstanding in the host country. Loans in the Bank’s United Kingdom subsidiary are classified as impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the loan(a loss event), and that loss event (or events) has an impact on the estimated future cash flows of the loans that can be reliably estimated. Loans in the Bank’s Canadian subsidiary are considered credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that loan have occurred.
A loan is classified as restructuring where a concessionary modification such as changes in repayment period, principal amount, repayment installment or a reduction in rate of interest, has been made and the loan is downgraded to non-performing. The restructuring of loans in the event of a natural disaster, restructuring involving deferment of date of commencement of commercial operations for projects under implementation and restructuring for certain medium and small medium enterprises continue to be classified as standard restructured loans. Further, the Reserve Bank of India provides a prudential framework to implement a resolution plan in respect of eligible borrowers, while classifying such exposures as standard, subject to specified conditions.
The Bank has enhanced internal controls for the identification of non-performing assets, including the review of loan accounts for certain conditions primarily related to size, credit rating and number of days past due.
The Bank makes provisions on assets based on their classification as standard, sub-standard, doubtful or loss, as per internal provisioning norms, subject to minimum provisioning requirements of the Reserve Bank of India. Loss assets and the unsecured portion of doubtful assets are fully provided for or written-off as required by the Reserve Bank of India guidelines. For loans and advances of overseas branches, the Bank makes provisions as per internal provisioning norms or host country regulations, whichever is higher. The Bank holds specific provisions against non-performing loans and advances and against certain performing loans and advances in accordance with the Reserve Bank of India directions. The Bank’s United Kingdom subsidiary maintains provision for loan losses at a level that management considers adequate to absorb identified credit related losses as well as losses that have occurred but are not yet identifiable. The Bank’s Canadian subsidiary maintains provision for all financial assets using expected credit loss model. The expected credit loss for impaired financial assets is computed based on an individual assessment of expected cash flows from such assets.
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In respect of non-retail loans reported as frauds to the Reserve Bank of India and classified in the doubtful category, the entire amount, without considering the value of any security, is provided for over a period not exceeding four quarters starting from the quarter in which fraud has been detected. In respect of non-retail loans where there has been a delay in reporting the fraud to the Reserve Bank of India or which are classified as loss accounts, the entire amount is provided for immediately. In the case of fraud in retail accounts, the entire amount is provided for immediately. We make provisions on restructured/rescheduled loans and advances in accordance with the applicable Reserve Bank of India guidelines on restructuring of loans and advances by banks.
In addition to the specific provision on non-performing assets, we maintain a general provision on standard loans and advances and restructured/rescheduled loans and advances at rates prescribed by the Reserve Bank of India. For standard loans and advances in overseas branches, we hold a general provision at the higher of host country regulatory requirements and the Reserve Bank of India requirements. The Bank also makes additional general provision on loans to specific borrowers in specific stressed sectors, exposures to step-down subsidiaries of Indian companies. Further, the Reserve Bank of India guidelines on‘Resolution Framework for COVID-19-related Stress’ provide a prudential framework for resolution plan of certain loans. The Reserve Bank of India guidelines require banks to hold minimum 10% of provisions on these loans. The Bank makes general provisions on such loans at rates equal to or higher than requirements stipulated in the Reserve Bank of India guidelines.
The Bank, on a prudent basis, has made contingency provisions on certain loan portfolios. The Bank also makes additional contingency provisions on certain standard assets. The contingency provisions are included in ‘Other Liabilities and Provisions’.
| (ii) | Non-Performing Loans Strategy |
In respect of non-viable non-performing loans, where borrowers have lost financial viability, we adopt an approach aimed at out-of-court settlements, enforcing collateral, driving consolidation and seeking resolution under the Insolvency and Bankruptcy Code under specific circumstances, which, among other measures, includes recovery through the sale of a borrower’s assets in a time-bound manner. Our focus is on time value of recovery and a pragmatic approach towards settlements. The collateral against our loan assets is the critical factor towards the success of our recovery efforts. In certain accounts where the value of collateral against our loan has been eroded, we undertake charge-offs against loan loss allowances held. However, we continue to pursue recovery efforts in these accounts, either jointly along with other lenders or individually through legal recourse and settlements. We are also adopting an online dispute resolution mechanism (entailing mediation, conciliation or arbitration or combination thereof administered by an independent institution) for speedy resolution of claims and disputes of certain retail assets and services as an alternative to approaching courts or tribunals. In addition, we focus on proactive management of accounts under supervision. Our strategy is aimed at early-stage solutions to incipient problems.
Our strategy for resolution of non-performing assets includes sales of financial assets to asset reconstruction companies in exchange for receipt of securities in the form of pass-through instruments issued by asset reconstruction companies, wherein payments to holders of the securities are based on the actual realized cash flows from the transferred assets. Under Indian GAAP, these instruments are valued at the net asset values as declared by the asset reconstruction companies and provisions are held as per internal norms, subject to minimum provisioning requirements of the Reserve Bank of India. Under U.S. GAAP, the assets we
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sell in exchange for security receipts are not accounted for as sales either because transfers do not qualify for sale accounting under FASB ASC Topic 860, ‘Transfers and servicing’, or transfers were impacted by FASB ASC Subtopic 810-10, ‘Consolidation - overall’, whereby, because the Bank is the ‘primary beneficiary’ of certain of these funds/trusts, it is required under U.S. GAAP to consolidate these entities. These assets are considered restructured assets under U.S. GAAP. See also “- II. - 3. - (f) -Loan Loss Provisions and Non-Performing Assets”.
We monitor trends in the credit ratings of our borrowers to enable us to take proactive remedial measures. We review the industry outlook and analyze the impact of changes in the regulatory and fiscal environment. Our periodic review system helps us to monitor the health of accounts and to take prompt remedial measures. We may seek to recover loans through enforcement of our rights in collateral. However, recoveries may be subject to delays of up to several years, due to the long legal process in India. This leads to delay in enforcement and realization of collateral. We may also take as security a pledge of financial assets, including marketable securities, and obtain corporate guarantees and personal guarantees of sponsors wherever appropriate. In certain cases, the terms of financing include covenants relating to sponsors’ shareholding in the borrower and restrictions on the sponsors’ ability to sell all or part of their shareholding. Covenants involving equity shares have top-up mechanisms based on price triggers. We maintain the non-performing assets on our books for as long as the enforcement process is ongoing. Accordingly, a non-performing asset may continue for a long time in our portfolio until the settlement of a loan account or realization of collateral, which may be longer than that for U.S. banks under similar circumstances. See also “- II. - 3. - (d) -(i) Collateral - Completion, Perfection and Enforcement”.
Secured loans to retail customers are secured by the assets financed (predominantly property and vehicles). We are entitled in terms of our security documents to repossess security comprising assets such as plants, equipment and vehicles without reference to the courts or tribunals unless a client makes a reference to such courts or tribunals to stay our actions. In respect of our retail loans, we adopt a standardized collection process designed to ensure prompt action for follow-up on overdue loans and recovery of defaulted amounts.
| (iii) | Non-Performing Loans |
The following table sets forth, for the periods indicated, the change in our gross (net of write-offs, interest suspense and derivatives income reversal) non-performing loan portfolio.(1)
| At March 31, | ||||||
|---|---|---|---|---|---|---|
| Particulars · 2025 · 2026 · 2026 | ||||||
| (in millions) | ||||||
| A. Consumer loans and credit card receivables(2) | ||||||
| Non-performing loans at the beginning of the fiscal year | Rs. | 119,232 | Rs. | 131,554 | JPY | 240,744 |
| Addition: New non-performing loans during the year | 176,661 | 156,532 | 286,454 | |||
| Less: Upgrade(3) | (45,869) | (40,610) | (74,316) | |||
| Recoveries (excluding recoveries made from upgraded accounts) | (44,182) | (47,426) | (86,790) | |||
| Write-offs | (74,288) | (78,048) | (142,828) | |||
| Non-performing loans at the end of the fiscal year | Rs. | 131,554 | Rs. | 122,002 | JPY | 223,264 |
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| B. Commercial(4) | ||||||
|---|---|---|---|---|---|---|
| Non-performing loans at the beginning of the fiscal year | Rs. | 160,376 | Rs. | 111,756 | JPY | 204,513 |
| Addition: New non-performing loans during the year | 33,098 | 41,548 | 76,033 | |||
| Less: Upgrade(3) | (11,446) | (10,458) | (19,138) | |||
| Recoveries (excluding recoveries made from upgraded accounts) | (41,158) | (21,203) | (38,801) | |||
| Write-offs | (29,114) | (9,372) | (17,151) | |||
| Non-performing loans at the end of the fiscal year | Rs. | 111,756 | Rs. | 112,271 | JPY | 205,456 |
| C. Leasing and related activities | ||||||
| Non-performing loans at the beginning of the fiscal year | Rs. | — | Rs. | — | JPY | — |
| Addition: New non-performing loans during the year | — | — | — | |||
| Less: Upgrade(3) | — | — | — | |||
| Recoveries (excluding recoveries made from upgraded accounts) | — | — | — | |||
| Write-offs | — | — | — | |||
| Non-performing loans at the end of the fiscal year | Rs. | — | Rs. | — | JPY | — |
| D. Total non-performing loans (A+B+C) | ||||||
| Non-performing loans at the beginning of the fiscal year | Rs. | 279,608 | Rs. | 243,310 | JPY | 445,257 |
| Addition: New non-performing loans during the year | 209,759 | 198,080 | 362,486 | |||
| Less: Upgrade(3) | (57,315) | (51,068) | (93,454) | |||
| Recoveries (excluding recoveries made from upgraded accounts) | (85,340) | (68,629) | (125,591) | |||
| Write-offs | (103,402) | (87,420) | (159,979) | |||
| Non-performing loans at the end of the fiscal year(4) | Rs. | 243,310 | Rs. | 234,273 | JPY | 428,720 |
| (1) | Includes loans identified as impaired in accordance with guidelines issued by regulators of the respective subsidiaries. |
| (2) | Includes home loans, automobile loans, commercial business loans, two-wheeler loans, personal loans, credit card receivables, jewel loans, farm equipment loans and other rural loan products. |
| (3) | Represents accounts that were previously classified as non-performing but have been upgraded to performing. |
| (4) | Includes working capital finance. |
Gross additions to non-performing consumer loans decreased from Rs. 176.7 billion in fiscal 2025 to Rs. 156.5 billion in fiscal 2026 primarily due to lower additions in unsecured loans (personal loan and credit card) and mortgage loans. In fiscal 2026, we upgraded non-performing consumer loans of Rs. 40.6 billion as compared to Rs. 45.9 billion in fiscal 2025. In fiscal 2026, we made recoveries against non-performing consumer loans of Rs. 47.4 billion (fiscal 2025: Rs. 44.1 billion) and wrote off non-performing loans amounting to Rs. 78.1 billion (fiscal 2025: Rs. 74.3 billion). Gross non-performing consumer loans decreased from Rs. 131.6 billion at year-end fiscal 2025 to Rs. 122.0 billion at year-end fiscal 2026.
The gross additions to non-performing commercial loans increased from Rs. 33.1 billion in fiscal 2025 to Rs. 41.6 billion in fiscal 2026 primarily due to higher additions in business banking portfolio. In fiscal 2026, we upgraded non-performing commercial loans amounting to Rs. 10.5 billion as compared to Rs. 11.4 billion in fiscal 2025 and made recoveries of non-performing commercial loans amounting to Rs. 21.2 billion in fiscal 2026 as compared to Rs. 41.2 billion in fiscal 2025. In fiscal 2026, commercial loans amounting to Rs. 9.3 billion were written-off, as compared to Rs. 29.1 billion in fiscal 2025, based on a borrower-specific evaluation of the probability of recovery and collectability of the loans.
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Gross non-performing commercial loans increased from Rs. 111.7 billion at year-end fiscal 2025 to Rs. 112.3 billion at year-end fiscal 2026.
As a result of the above, our gross non-performing loans decreased by 3.7% from Rs. 243.3 billion at year-end fiscal 2025 to Rs. 234.3 billion at year-end fiscal 2026. Our net non-performing loans decreased by 1.0% from Rs. 61.6 billion at year-end fiscal 2025 to Rs. 61.0 billion at year-end fiscal 2026. The net non-performing loans ratio was 0.4% at year-end fiscal 2025 and fiscal 2026.
The total non-fund-based outstanding to borrowers classified as non-performing was Rs. 21.7 billion at March 31, 2026, as compared to Rs. 30.8 billion at March 31, 2025.
| (iv) | Restructured Loans |
The following table sets forth, at the dates indicated, information regarding roll-forward and average balances of standard restructured loans.
| At March 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 · 2026/2025 % change | |||||||
| (in millions, except percentages) | |||||||
| Opening balance (gross restructured loans) | Rs. | 35,680 | Rs. | 23,598 | JPY | 43,184 | (33.9)% |
| Add: Loans restructured during the year | — | — | — | — | |||
| Add: Increase in loans outstanding in respect of previously restructured loans/borrowers | 516 | 1,968 | 3,601 | 281.4 | |||
| Less: Loans upgraded to standard category during the year | — | — | — | — | |||
| Less: Loans downgraded to non-performing category during the year | (1,964) | (896) | (1,640) | (54.4) | |||
| Less: Repayments/change in management/conversion to equity shares during the year | (10,634) | (6,397) | (11,707) | (39.8) | |||
| Gross restructured loans | Rs. | 23,598 | Rs. | 18,273 | JPY | 33,440 | (22.6)% |
| Provisions for restructured loans | (900) | (647) | (1,184) | (28.0) | |||
| Net restructured loans | Rs. | 22,698 | Rs. | 17,626 | JPY | 32,256 | (22.3)% |
| Average balance of net restructured loans(1) | Rs. | 25,824 | Rs. | 20,695 | JPY | 37,872 | (19.9)% |
| Gross loans | Rs. | 14,389,294 | Rs. | 16,620,543 | JPY | 30,415,594 | 15.5% |
| Net loans | Rs. | 14,206,637 | Rs. | 16,446,580 | JPY | 30,097,241 | 15.8% |
| Gross restructured loans as a percentage of gross loans | 0.2% | 0.1% | |||||
| Net restructured loans as a percentage of net loans | 0.2% | 0.1% | |||||
| (1) | The average balance is the average of quarterly balances outstanding at the end of March of the previous year and June, September, December and March of the current year. |
| (2) | In addition, the Bank holds general provision amounting to Rs. 4,765 million at year-end fiscal 2026 (year-end fiscal 2025: Rs. 5,989 million) on these restructured loans, subject to minimum provisioning requirement as per the guidelines issued by the Reserve Bank of India. |
In fiscal 2026, restructured standard loans amounting to Rs. 1.0 billion were classified as non-performing due to failure of borrowers to perform as per restructured debt terms. The gross outstanding standard restructured loans decreased from Rs. 23.6 billion at year-end fiscal 2025 to Rs. 18.3 billion at year-end fiscal 2026, and the net outstanding restructured loans decreased from Rs. 22.7 billion at year-end fiscal 2025 to Rs. 17.6 billion at year-end fiscal 2026.
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The Bank’s outstanding non-fund-based facilities to borrowers whose loans were classified as restructured were Rs. 2.6 billion at year-end fiscal 2026.
The aggregate gross non-performing and standard restructured loans decreased by Rs. 14.4 billion, or 5.4%, from Rs. 266.9 billion at year-end fiscal 2025 to Rs. 252.5 billion at year-end fiscal 2026. The aggregate net non-performing and restructured loans decreased by Rs. 5.7 billion, or 6.7%, from Rs. 84.3 billion at year-end fiscal 2025 to Rs. 78.6 billion at year-end fiscal 2026.
| (v) | Provisions and Contingencies (Excluding Provision for Tax) |
The following table sets forth, for the periods indicated, the composition of provisions and contingencies, excluding provisions for tax.
| Year ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 · 2026/2025 % change | ||||||||
| (in millions, except percentages) | ||||||||
| Provision for investments (net) | Rs. | 8,001 | (1) | Rs. | (6,060) | JPY | (11,090) | N/M |
| Provision for non-performing and other assets | 41,272 | (1) | 62,768 | 114,865 | 52.1 | |||
| Provision for standard assets | 7,011 | 8,355 | 15,290 | 19.2 | ||||
| Others | (7,226) | (8,675) | (15,875) | 20.1 | ||||
| Total provisions and contingencies (excluding provision for tax) | Rs. | 49,058 | Rs. | 56,388 | JPY | 103,190 | 14.9% | |
| (1) | Includes movement of provision amounting to Rs. 16.0 billion on sale of loans to asset reconstruction company and receipts of security receipts. |
| * | ‘N/M’ means ‘Not meaningful’. |
Provisions and contingencies (excluding provision for tax) increased by 14.9% from Rs. 49.1 billion in fiscal 2025 to Rs. 56.4 billion in fiscal 2026 primarily due to an increase in provision on non-performing and other assets, offset, in part, by a decrease in other provisions and contingencies.
Provision for non-performing and other assets increased from Rs. 41.3 billion in fiscal 2025 to Rs. 62.8 billion in fiscal 2026. During fiscal 2025, the Bank received security receipts on sale of fully provided loans to asset reconstruction company. The Bank continued with the provisions under ‘Provision for investments’ by transferring from ‘Provisions from non-performing and other assets’. During fiscal 2026, following its annual supervisory review, the Reserve Bank of India directed the Bank to make a standard asset provision of Rs. 12.8 billion in respect of a portfolio of agricultural priority sector credit facilities wherein the terms of the facilities were found to be not fully compliant with the regulatory requirements for classification as agricultural priority sector lending. There is no change in asset classification or in the terms and conditions applicable to the borrowers or in the repayment behavior of borrowers as per these terms. This additional standard asset provision will continue until the loans are repaid or renewed in conformity with the priority sector lending classification guidelines. Excluding the above provision as directed by the Reserve Bank of India, and the movement of provision on sale of loans to asset reconstruction company during fiscal 2025, the provisions for non-performing and other assets in fiscal 2026 decreased as compared to fiscal 2025 primarily due to lower additions to gross non-performing retail and rural advances. During fiscal 2025, there were higher net additions to non-performing assets primarily in retail and rural loans.
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Provision for investments was Rs. 8.0 billion in fiscal 2025 as compared to a write-back of Rs. 6.1 billion in fiscal 2026 primarily due to a write-back of provision in the Bank. During fiscal 2026, the Bank wrote-back provision of Rs. 5.0 billion on redemption of security receipts and Rs. 1.6 billion on debentures due to receipt of funds, units and conversion into equity shares. During fiscal 2025, ICICI Bank made a provision of Rs. 16.1 billion on security receipts received on conversion of loans, offset, in part, by a write-back of provisions amounting to Rs. 3.9 billion on its investment in alternate investment funds, Rs. 2.4 billion on redemption of security receipts and Rs. 0.4 billion on equity shares due to an increase in share price.
Provision for standard assets increased from Rs. 7.0 billion in fiscal 2025 to Rs. 8.4 billion in fiscal 2026 primarily due to an increase in provision for standard assets of the Bank. Provision for standard assets of the Bank increased from Rs. 5.8 billion in fiscal 2025 to Rs. 7.7 billion in fiscal 2026 primarily due to an increase in standard advances book.
Write-back of other provisions and contingencies increased from Rs. 7.2 billion in fiscal 2025 to Rs. 8.7 billion in fiscal 2026 primarily due to an increase in write-back of other provisions and contingencies in the Bank. Write-back of other provisions and contingencies of the Bank increased from Rs. 7.6 billion in fiscal 2025 to Rs. 9.4 billion in fiscal 2026. During fiscal 2026, the Bank primarily made a write-back of Rs. 2.8 billion due to sale of non-banking assets and a write-back of Rs. 3.4 billion held against non-fund outstanding on account of satisfactory performance of the borrower and provision for capital work in progress amounting to Rs. 0.9 billion was written-back due to change in policy. During fiscal 2025, the Bank made a write-back of provision of Rs. 3.2 billion on non-retail restructured non-performing assets upgraded to standard category, Rs. 0.9 billion due to assessment of provision held due to ongoing litigation in respect of past recovery amounts and Rs. 1.0 billion on a non-fund-based exposure due to upgrade of borrower account from stage 3 to stage 2 in overseas branches.
| (f) | Provision for Tax |
The provision for income tax expense increased from Rs. 184.3 billion in fiscal 2025 to Rs. 193.8 billion in fiscal 2026 primarily due to an increase in profit before tax. The effective tax rate decreased marginally from 25.3% in fiscal 2025 to 25.1% in fiscal 2026.
(2) Financial Position
| (a) | Assets |
The following table sets forth at the dates indicated, the principal components of assets.
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| At March 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 · 2026 · 2026 · 2026/2025 % change | |||||||
| (in millions, except percentages) | |||||||
| Cash and cash equivalents(1) | Rs. | 2,140,235 | Rs. | 2,649,807 | JPY | 4,849,147 | 23.8% |
| Investments | 8,863,768 | 8,707,199 | 15,934,174 | (1.8) | |||
| Advances | 14,206,637 | 16,446,580 | 30,097,241 | 15.8 | |||
| Fixed assets | 158,124 | 174,203 | 318,791 | 10.2 | |||
| Other assets | 969,056 | 1,061,690 | 1,942,893 | 9.6 | |||
| Goodwill on consolidation | 84,594 | 105,501 | 193,067 | 24.7 | |||
| Total assets | Rs. | 26,422,414 | Rs. | 29,144,980 | JPY | 53,335,313 | 10.3% |
| (1) | Includes cash and balances with the Reserve Bank of India, balances with banks and money at call and short notice. |
Our total assets increased by 10.3% from Rs. 26,422.4 billion at year-end fiscal 2025 to Rs. 29,145.0 billion at year-end fiscal 2026 primarily due to an increase in net advances and cash and cash equivalents.
| (i) | Cash and Cash Equivalents |
Cash and cash equivalents increased by 23.8% from Rs. 2,140.2 billion at year-end fiscal 2025 to Rs. 2,649.8 billion at year-end fiscal 2026 primarily due to an increase in call and short money lending in India under reverse repo, balance with banks outside India, liquidity adjustment facility, standing deposit facility lending to the Reserve Bank of India, offset, in part, by a decrease in balances in current account with the Reserve Bank of India.
| (ii) | Investments |
Total investments decreased by 1.8% from Rs. 8,863.8 billion at year-end fiscal 2025 to Rs. 8,707.2 billion at year-end fiscal 2026.
Investments of the Bank decreased from Rs. 5,047.6 billion at year-end fiscal 2025 to Rs. 4,922.2 billion at year-end fiscal 2026 primarily due to a decrease in investments in Government of India securities.
Investments of ICICI Securities Primary Dealership Limited decreased from Rs. 346.4 billion in fiscal 2025 to Rs. 221.9 billion in fiscal 2026 primarily due to a decrease in position in government securities and treasury bills.
Investments of ICICI Lombard General Insurance Company Limited increased from Rs. 524.8 billion at year-end fiscal 2025 to Rs. 577.7 billion at year-end fiscal 2026, primarily due to accruals and growth in business volume.
Investments of ICICI Bank UK PLC increased from Rs. 57.3 billion at year-end fiscal 2025 to Rs. 83.5 billion at year-end fiscal 2026, primarily due to an increase in government securities and treasury bills.
Investments of ICICI Prudential Life Insurance Company Limited increased from Rs. 2,999.4 billion at year-end fiscal 2025 to Rs. 3,023.5 billion at year-end fiscal 2026. Investments held to cover linked liabilities decreased from Rs. 1,612.4 billion at year-end fiscal 2025 to Rs. 1,510.5 billion at year-end fiscal 2026, primarily due to net outflows and unrealized losses due to equity market performance during the year. Investments, other than investments held to cover linked liabilities, increased from Rs. 1,387.0 billion at year-end
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fiscal 2025 to Rs. 1,513.0 billion at year-end fiscal 2026 primarily due to net inflows into the fund.
Investments of ICICI Prudential Asset Management Company Limited increased from Rs. 32.9 billion at year-end fiscal 2025 to Rs. 38.6 billion at year-end fiscal 2026, primarily due to an increase in investments in the mutual fund units.
Our total investment in Government of India securities decreased by 4.5% from Rs. 5,345.8 billion at year-end fiscal 2025 to Rs. 5,105.0 billion at year-end fiscal 2026.
See also “- II. - 3. - (b) -(viii) - Treasury”.
| (iii) | Classification of Investments |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.