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.

Good evening, everyone. Thank you all for joining us on this busy Saturday afternoon. The Indian economy continues to remain resilient as reflected by India's economic fundamentals, supported by consistent actions and initiatives of the policymakers. We continue to monitor the developments closely and remain focused on our long-term strategy, aligned with India's evolving economic landscape. At ICICI Bank, our strategic focus continues to be on growing profit before tax, including 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 values to strengthen our franchise. Maintaining high standards of governance, deepening coverage and enhancing delivery capabilities with a focus on simplicity and operational resilience are the key drivers for our risk-eliminated profitable growth. Our board today approved the financial results of ICICI Bank for the quarter and the quarter and half year ended September 30th, 2026. I would like to highlight some key numbers. First, moving on to profit and capital. The net interest income grew by 17.7% year-on-year to Rs. 25,339 crore in Q2 2027. The net interest margin was 4.18% in Q2 2027 compared to 4.36% in Q1 2027. Excluding the benefit of interest on income tax refund, the net interest margin would have been 4.28% in Q1 2027. The fee income grew by 20.1% year-on-year to Rs. 7,795 crore in Q2 2027. Operating expenses grew by 8.5% year-on-year to Rs. 12,811 crore in Q2 2027. Our core operating profit grew by 21.8% year-on-year to Rs. 20,805 crore in Q2 2027. Core operating profit excluding dividend from subsidiaries grew by 25% year-on-year to Rs. 20,342 crore in Q2 2027. Provision, excluding provisions for tax, were Rs. 851 crore in Q2 2027. The profit before tax excluding treasury grew by 23.4% year-on-year to Rs.19,954 crore in Q2 2027. Profit after tax grew by 20.1% year-on-year to Rs.14,843 crore in Q2 2027. Stand-alone ROE was 16.6% in Q2 2027. At September 30, 2026, the bank had a net worth of about Rs.3.6 lakh crore. 3T ratio was 16.01 and total capital RxT ratio was 16.68% at September 30th, 2026. Moving on to deposit growth, the total period in deposits increased by 27.1% year-on-year and 11.8% quarter-on-quarter at September 30th, 2026. The bank has mobilized FCNRB deposits of 48 billion USD pursuant to Reserve Bank of India's swap facility. The average deposits increased by 21.2% year-on-year and 8% sequentially during Q2 2027. Average current and savings account deposits increased by 10.7% year-on-year. The bank opened 145 branches in H1 2027 and had a network of 7,656 branches and 12,143 ATMs and cash recycling machines at September 30, 2026. Moving on to loan growth, The total loan portfolio grew by 30% year-on-year and 12.3% quarter-on-quarter at September 30, 2026. The retail and rural loan book grew by 14.8% year-on-year. Including non-fund outstanding, the retail loan portfolio was 43% of the total portfolio. The mortgage portfolio grew by 15.3% year-on-year. The personal loan portfolio grew by 16.6% year-on-year. The credit card portfolio declined by 9.7% year-on-year. Dual loans grew by 79.4% year-on-year. The business banking portfolio grew by 33.8% year-on-year. Growth in the domestic corporate portfolio was 30.6% year-on-year at September 30, 2026. About 73.2% of the corporate portfolio was rated A- and above at September 30, 2026. Now moving to asset quality. Net NP ratio was 0.3% at September 30th, 2026 compared to 0.35% at June 30th, 2026 and 0.39% at September 30th, 2025. During Q2 2027, there were net additions to gross NPAs of Rs. 1,213 crore. Gross NP additions were Rs. 4,833 crore in Q2 2027. Recoveries and upgrades of NPAs excluding write-offs and sale were Rs. 3,620 crore in Q2, 2027. Cross NPAs return off were Rs. 1,592 crore in Q2, 2027. There was a sale of NPAs of Rs. 133 crore for cash in the current quarter. Provision coverage ratio on non-performing loans was 75% at September 30, 2026. Total fund-based outstanding to all borrowers under his position as per various extent of the equation was 1,185 crore rupees. Loans and non-fund-based outstanding to performing corporate borrowers rated double B and below were 3,547 crore rupees on September 30, 2026. The total provisions during Q2 2027 were 861 crore rupees. are 4.1% of core operating profit and 0.2% of average advances. The bank continues to hold contingency provisions of Rs. 13,100 crore at September 30, 2026. As I say to a bank, customers remain at the heart of every initiative. I would like to share some of the latest updates on AI that make banking simpler, safer and more convenient. We continue to use AI as an opportunity to strengthen the ways we serve our customers and run our operations. Our efforts in this area are guided by a clear approach to scaling its use responsibly while creating long-term value for the bank. We have built an enterprise AI platform that enables teams to develop and deploy AI and generative AI solutions in a secure environment. The areas span across a range of functions like software development, cybersecurity, Customer Onboarding, Fraud Detection, Portfolio Monitoring, Document Extraction and Summarization and Customer Service. Together these capabilities help simplify processes, improve turnaround times and support decision making across multiple banking functions. The bank is also working with multiple startups in the area of AI to explore and develop banking solutions. As the bank expands its use of AI, strong governance and risk management remains central to our approach. We have put in place guardrails that define the boundaries for AI usage, ensure human oversight of AI-driven processes, enforce stringent data access controls, and establish protocols for effective model governance. We are also focused on upscaling initiatives for our digital and technology teams. Going forward, we will continue to operate within our strategic framework while focusing on micromarkets and e-commerce. The principles of fair to customer, fair to bank, one bank, one team and return of capital will guide our operation. We focus on building a culture where every employee of the bank serves customers with humility and upholds the value of brand ICICI. We aim to be a trusted financial service provider of choice for our customers and deliver sustainable returns to our shareholders. With this, I conclude my opening remarks and we will be happy to take your questions.

Thank you very much, sir. We will now begin the Q&A session with Mr. Batra and Mr. Banerjee. Anyone who wishes to ask a question may press star and 1 on the telephone. If you wish to remove yourself from the question queue, you may press star and 2. Today's announcement is on the bank's financial performance. Hence, we would like to request you to ask questions related to that. Please contact the corporate communications team separately for any other queries. Due to time constraints, I request all of you to ask two questions at a time. If you have additional queries, you may join the queue again if time permits. Thank you. We'll take our first question from Ritu Singh from CNBC TV AP. Please go ahead.