India’s top private lenders, ICICI Bank and HDFC Bank, reported steady March quarter earnings, underlining continued strength in credit growth and asset quality. However, ICICI Bank has also come under the spotlight following a fresh petition filed with the Reserve Bank of India (RBI) by Public interest lawyer and activist Prashant Bhushan has written to the RBI, urging the regulator not to extend the tenure of ICICI Bank CEO Sandeep Bakhshi.
The bank had earlier sought a two-year extension for Bakhshi in January, deviating from the usual three-year term, as part of its internal succession planning exercise, as per various media reports.
On the financial front, ICICI Bank reported a strong operational performance for Q4FY26. Net profit rose 8.5 per cent year-on-year to Rs 13,702 crore, supported by a sharp fall in provisions, which dropped to just ₹96 crore compared with Rs 891 crore a year ago.
Net interest income grew 8.4 per cent YoY to Rs 22,979 crore, broadly in line with market expectations, while operating profit rose to around Rs 18,200 crore. Loan growth remained healthy, with advances expanding 15.8 per cent YoY to Rs 15.53 lakh crore, led by business banking and rural segments. Deposits also increased 11.4 per cent YoY to Rs 17.94 lakh crore.
Asset quality continued to improve, with the gross NPA ratio declining to 1.40 per cent and net NPA at 0.33 per cent, reflecting steady recoveries and prudent underwriting. Margins held firm, with net interest margin at 4.32 per cent.
HDFC Bank, the country’s largest private lender, also reported a stable quarter, though with a slightly different mix of numbers. Standalone net profit rose 9.1 per cent YoY to Rs 19,221 crore, while consolidated profit came in at Rs 20,350.76 crore, up 8 per cent.
However, interest income dipped marginally by 1.1 per cent YoY to Rs 76,610 crore, reflecting some pressure on yields. Despite this, overall income held steady, aided by lower expenses, which declined to Rs 62,006 crore during the quarter.
A key positive for HDFC Bank was improvement in asset quality. Gross NPAs fell to 1.15%, compared with 1.33% a year ago, while provisions also declined significantly to ₹2,610 crore, indicating reduced stress and better recoveries.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
