ICICI Bank Limited

Ladies and gentlemen, we welcome you all to ICICI Bank's results conference call with Mr. Sandeep Batra, Executive Director, ICICI Bank and Mr. Anindya Banerjee, Group Chief Financial Officer, ICICI Bank. Mr. Batra will now give you an overview of the results which will be followed by a Q&A session. Thank you and over to you sir.

Thank you. Good evening everyone and thank you all for joining us today. I know it's going to be a busy afternoon for all of you. Amidst the global uncertainties, the Indian economy continues to be resilient as reflected in high-frequency indicators backed by various initiatives taken by policymakers. We continue to monitor the developments closely and remain focused on a long-term strategy aligned with India's evolving economic landscape. At Ajay Chah Bank, our strategy focus continues to be on growing profit before tax, excluding treasury, through the 360 degree customer centric approach and by serving opportunities across ecosystems and micro markets. We continue to operate within the framework of our value systems and our franchise. Maintaining high standards of governance, deepening coverage and enhancing delivery capabilities with a focus on simplicity and operation are key drivers for our risk calibrated profitable growth. Our board has approved the financial results of ICICI Bank for the quarter ended June 30th, 2026. I would like to highlight some of the key numbers. First, moving on to profit and capital. One, the net interest income grew by 12.7% year-on-year to Rs. 24,384 crore in Q1 2027. Net interest margin was 4.36% in Q1 2027 compared to 4.32% in Q4 2026. Free income grew by 23.5% year-on-year to Rs.7,286 crore in Q1,2027. Operating expenses grew by 10.4% year-on-year to Rs.6,574 crore in Q1,2027. Core operating profit grew by 15.6% year-on-year to Rs.20,235 crore in Q1,2027. Core operating profit excluding dividend from subsidiaries grew by 18.3% year-on-year to Rs. 19,125 crore in Q1 2027. Provision excluding provisions for tax were Rs. 1264 crore in Q1 2027. Profit before tax excluding treasury grew by 20.9% year-on-year to Rs. 18,975 crore in Q1 2027. Profit after tax grew by 15.9% year-on-year to 14,805 crore rupees in Q1 2027. Stand-alone ROE was 17.1% in Q1 2027. At June 30, 2026, the bank had an S-worth of about 3.5 lakh crore rupees. CET1 ratio was 16.19% and capital adequacy ratio was 16.84% at June 30, 2026. Moving on to deposit growth, The total period and deposit increased by 14% year-on-year to 2.2% quarter-on-quarter at June 30, 2026. Average deposits increased by 14% year-on-year and 6.1% sequentially during Q1, 2027. Average current and savings account deposit increased by 12.1% year-on-year. Bank Opal sent 97 branches during Q1, 2027 and a network of 7,680 practices and 12,190 ATMs and cash recycling machines at June 30th, 2026. Moving on to loan growth, the total loan portfolio grew by 19.6% year-on-year and 5% quarter-on-quarter at June 30th, 2020. The retail loan portfolio grew by 12% year-on-year including non-fund outstanding The retail portfolio was 41.1% of the total portfolio. The mortgage portfolio grew by 14.6% year-on-year. The personal loan portfolio grew by 12.9% year-on-year. The credit card portfolio declined by 1.9% year-on-year. The rural portfolio grew by 35.4% year-on-year. The business banking portfolio grew by 28.2% year-on-year. Growth in the domestic corporate portfolio was 18.5% year-on-year at June 30, 2026. About 71.9% of the corporate loan portfolio was retail A- and above as at June 30th, 2026. Now moving to asset quality, net NPR ratio was 0.35% at June 30th, 2026 compared to 0.33% at March 31st, 2026 and 0.41% at June 30th, 2025. During Q1, 2027, There were net additions to gross NPAs of Rs.2,774. Gross NPA additions were Rs.5,552 crore in Q1 2020. Recoveries and upgrades of NPAs excluding write-offs and fail were Rs.2,845 crore in Q1 2020. Gross NPAs written off were Rs.1,673 crore in Q1 2027. There was sale of NPAs of 239 crore rupees for cash in the current quarter. Provision coverage ratio on non-performing loans was 74.7% as June 30th, 2026. Total fund-based outstanding to all borrowers under resolution as per various extent regulations was 1363 crore rupees. Loans and non-fund-based outstanding to performing corporate borrowers rated Double B and below were 3485 crore rupees at June 30th, 2026. The TOFI provisions during Q1, 2027 were 1260 crore rupees or 6.2% of core operating profit and 0.32% of average advances. The bank continues to hold contingency provisions of 13,100 crore rupees at June 30th, 2026. At Ajay Kher Bank, customers continue to remain at the heart of every initiative. I would like to share some of the latest updates on AI that we are making to make banking simpler, safer and more convenient. ICICI Bank has established a structured and disciplined approach to scale AI with a focus on long-term value creation, risk management and enterprise-wide adoption. The bank is invested in Enterprise AI platform which serves as a secure environment for development, hosting and development of AI and generative AI use cases. The bank continues to invest in AI and AI use cases across areas such as portfolio monitoring, customer onboarding, fraud detection, document extraction and summarization, and customer servicing among others. These capabilities empower the bank to enhance customer communication, improve efficiencies, achieve software program time, support decision making across functions, and deliver seamless customer experience. Our approach places emphasis on information security, data privacy and responsible AI. We have implemented a comprehensive framework of guardrails including defining ring-fenced areas for AI usage, human-in-the-loop oversight, stringent data access control and effective model governance protocols. Parallely, the bank continues to invest in internal capability building with focus of scaling initiatives across businesses, digital and technology, into students and enterprise-wide Readiness and support, sustainable scaling of AI capabilities across the organization. Going forward, we will continue to operate within our strategic framework while focusing on micro-markets and ecosystems, the principles of fair to customer, fair to bank, one bank, one team, after capital decider operation. We focus on building a culture where every employee of the bank serves customers with stability and upholds the values of brand ICICI. We aim to be a trusted financial services provider of choice for our customers and deliver sustainable returns to our shareholders. This I conclude my opening remarks and I would be happy to take on your questions. Thank you. Thank you.

Thank you very much sir. We will now begin the Q&A session with Mr. Batra and Mr. Banerjee. Anyone who wishes to ask the question may press star and 1 on the telephone. Thank you. We'll take our first question from Ritu Singh from CNBC TV18. Please go ahead.