Private sector lender ICICI Bank reported a steady set of numbers for the fourth quarter of FY26, supported by healthy core income growth and stable asset quality, while also rewarding shareholders with a final dividend.
The bank posted a net profit of Rs 14755 crore for the March quarter, marking a rise of around 9.2 per cent year-on-year compared to the corresponding period last year. The growth was driven by strong net interest income and consistent operational performance, reflecting resilience despite a challenging interest rate environment.
Net Interest Income (NII), a key indicator of a bank’s core earnings, rose to Rs 22979 crore in Q4 FY26, registering an increase of about 8.4% from Rs 21193 crore in the same quarter last year. The improvement highlights continued traction in loan growth and stable margins, even as the broader sector faces some pressure on spreads.
Operating profit also saw a modest uptick, coming in at Rs 18,199 crore versus Rs 17664 crore a year ago, translating into a 3% rise. This indicates steady efficiency in managing costs alongside income growth.
On the asset quality front, the bank reported further improvement. Gross non-performing assets (NPA) declined to 1.40 per cent in Q4 FY26 from 1.53 per cent in the previous quarter, while net NPA eased to 0.33 per cent from 0.37 per cent. The decline in bad loans suggests better credit discipline and recovery trends, which continue to support profitability.
In a positive takeaway for investors, the bank declared a final dividend of Rs 12 per share for FY26. This marks an increase from the Rs 11 dividend announced in the previous financial year, reflecting the bank’s consistent capital return approach.
However, return on assets (ROA), a key profitability metric, came in slightly lower at 2.33 per cent for FY26 compared to 2.41 per cent in FY25, indicating some moderation in overall efficiency despite strong earnings growth.
With strong fundamentals and continued focus on asset quality, the lender remains well-positioned heading into the new financial year, even as macroeconomic conditions and interest rate trends remain key monitorables for the banking sector.
(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)
