Q4 2026 ICICI Bank Ltd Earnings Call

Speaker #1: Ladies and gentlemen, you are connected for the ICICI Bank earnings conference call. Can you stay on the line? The call will begin in the next few minutes.

Speaker #2: Thank you

Speaker #1: Ladies and gentlemen , good day and welcome to ICICI Bank limited . Q4 FY 26 Earnings Conference call As a reminder , all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes .

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touchtone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Sandeep Bakhshi, Managing Director and Chief Executive Officer of ICICI Bank. Thank you, and over to you, sir.

Operator 3: Thank you and over to you, sir.

Speaker #3: Thank you. Good evening to all of you, and welcome to the ICICI Bank earnings call to discuss the results for Q4 of FY2026.

Sandeep Bakhshi: Thank you. Good evening to all of you, and welcome to the ICICI Bank Earnings Call to discuss the results for Q4 of FY 2026. Joining us today on this call are Sandeep Batra, Rakesh, Ajay, Anindya Banerjee, and Abhinav. At ICICI Bank, our strategic 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 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 key drivers for our risk-calibrated profitable growth. The profit before tax, excluding treasury, grew by 10.1% year-on-year to INR 182.09 billion in this quarter, and by 7.1% year-on-year to INR 650.21 billion in FY 2026.

Speaker #3: Joining us today on this call are Sandeep Batra, Rakesh, Ajay Anandhi, and Abhinav at ICICI Bank. Our strategic focus continues to be on growing profit before tax excluding Treasury.

Speaker #3: 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 .

Speaker #3: With a focus on simplicity and operational resilience Are key drivers for our risk calibrated profitable growth . The profit before tax , excluding Treasury , grew by 10.1% year on year to ₹182.09 billion in this quarter , and by 7.1% year on year to 6.50.2 ₹1 billion in FY 2026 .

Speaker #3: The core operating profit increased by 5.1% year on year to ₹183.05 billion in this quarter, and by 7.7% year on year to ₹704.01 billion in FY 2026.

Sandeep Bakhshi: The core operating profit increased by 5.1% year-on-year to INR 183.05 billion in this quarter, and by 7.7% year-on-year to INR 704.01 billion in FY 2026. The profit after tax grew by 8.5% year-on-year to INR 137.02 billion in this quarter, and by 6.2% year-on-year to INR 501.47 billion in financial year 2026. The consolidated profit after tax grew by 9% year-on-year to INR 147.55 billion in this quarter, and by 6.2% year-on-year to INR 542.08 billion in FY 2026. The board has recommended a dividend of INR 12 per share for FY 2026, subject to requisite approvals. Total deposits grew by 11.4% year-on-year and 8.1% sequentially at 31 March 2026. Average current and savings account deposits grew by 11.3% year-on-year and 2.7% sequentially during this quarter. The bank's average LCR for the quarter was about 126%. The overall loan portfolio, including the international branches portfolio, grew by 15.8% year-on-year and 6% sequentially at 31 March 2026.

Speaker #3: The profit after tax grew by 8.5% year on year to ₹137.02 billion . In this quarter , and by 6.2% year on year to five , or ₹1.47 billion in financial year 2026 .

Speaker #3: The consolidated profit after tax grew by 9% year on year to ₹147.55 billion in this quarter, and by 6.2% year on year to ₹152.8 billion in FY 2026.

Speaker #3: The board has recommended a dividend of ₹12 per share for FY 2026 , subject to requisite approvals Total deposits grew by 11.5 11.4% year on year and 8.1% sequentially at March 31st , 2026 .

Speaker #3: Average current and savings account deposits grew by 11.3% year on year and 2.7% sequentially . During this quarter . The bank's average LCR for the quarter was about 126% .

Speaker #3: The overall loan portfolio , including the international branches portfolio , grew by 15.8% year on year and 6% sequentially at March 31st , 2026 .

Speaker #3: The retail loan portfolio grew by 9.5% year on year and 4.2% sequentially , including Non-fund based outstanding . The retail portfolio was 41.7% of the total portfolio The rural portfolio , including gold loans , grew by 2020 5.6% year on year and 18% sequentially .

Sandeep Bakhshi: The retail loan portfolio grew by 9.5% year-on-year and 4.2% sequentially. Including non-fund based outstanding, the retail portfolio was 41.7% of the total portfolio. The rural portfolio, including gold loan, grew by 25.6% year-on-year and 18% sequentially. The business banking portfolio grew by 24.4% year-on-year and 7.6% sequentially. The domestic corporate portfolio grew by 9% year-on-year and 3.1% sequentially. The domestic loan portfolio grew by 15.3% year-on-year and 5.6% sequentially at 31 March 2026. The overseas loan portfolio was 2.7% of the overall loan book at 31 March 2026. The net NPA ratio was 0.33% at 31 March 2026, compared to 0.37% at 31 December 2005, and 0.39% at 31 March 2025. The total provisions during the quarter were INR 0.96 billion or 0.5% of core operating profit and 0.03% of average advances. The provisioning coverage ratio on non-performing loans was 75.8% at 31 March 2026.

Speaker #3: The business banking portfolio grew by 24.4% year on year and 7.6% sequentially The domestic corporate portfolio grew by 9% year on year and 3.1% sequentially .

Speaker #3: The domestic loan portfolio grew by 15.3% year on year and 5.6% sequentially at March 31, 2026. The overseas loan portfolio was 2.7% of the overall loan book at March 31, 2026.

Speaker #3: The net n p ratio was 0.33% at March 31st , 2026 , compared to 0.37% at December 31st , 25 and 0.39% at March 31st , 2025 .

Speaker #3: The total provisions during the quarter were ₹0.96 billion, or 0.5% of core operating profit, and 0.03% of average advances. The provisioning coverage ratio on non-performing loans was 75.8% at March 31, 2026.

Speaker #3: In addition, the bank continues to hold contingency provisions of ₹131 billion, or about 0.9% of total advances, as at March 31, 2026.

Sandeep Bakhshi: In addition, the bank continues to hold contingency provisions of INR 131 billion or about 0.9% of total advances at 31 March 2026. The capital position of the bank continued to be strong with a CET1 ratio of 16.35% and total capital adequacy of 17.18% at 31 March 2026, after reckoning the impact of proposed dividend. Looking ahead, we see many profit opportunities to drive risk-calibrated profitable growth and grow market share across these segments. We remain focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to our shareholders. I now hand the call over to Anindya Banerjee.

Speaker #3: The capital position of the bank continued to be strong, with the A21 ratio at 16.35% and total capital adequacy at 17.18% as of March 31, 2026.

Speaker #3: After reckoning the impact of the proposed dividend, looking ahead, we see many profit opportunities to drive risk-calibrated profitable growth and grow market share across key segments.

Speaker #3: We remain focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to our shareholders.

Speaker #3: I now hand the call over to Ananda . Thank you Sandeep . I will talk about loan growth , credit quality , PNL details , portfolio trends , and the performance of subsidiaries Sandeep covered the loan growth across various segments .

Anindya Banerjee: Thank you, Sandeep. I will talk about loan growth, credit quality, P&L details, portfolio trends, and the performance of subsidiaries. Sandeep covered the loan growth across various segments. Coming to the growth across retail products, the mortgage portfolio grew by 13.2% year-on-year and 4.7% sequentially. Auto loans grew by 1.7% year-on-year and 1.4% sequentially. The commercial vehicles and equipment portfolio grew by 11.6% year-on-year and 6.4% sequentially. Personal loans grew by 7.2% year-on-year and 5.2% sequentially. The credit card portfolio declined by 5.6% year-on-year and 1.3% sequentially. Within the corporate portfolio, the total outstanding to NBFCs and HFCs was INR 859.04 billion at 31 March 2026, compared to INR 791.18 billion at 31 December 2025. The total outstanding loans to NBFCs and HFCs were about 4.6% of our advances at 31 March 2026.

Speaker #3: Coming to the growth across retail products , the mortgage portfolio grew by 13.2% year on year and 4.7% sequentially . Auto loans grew by 1.7% year on year and 1.4% sequentially .

Speaker #3: The commercial vehicles and equipment portfolio grew by 11.6% year on year and 6.4% sequentially . Personal loans grew by 7.2% year on year and 5.2% sequentially .

Speaker #3: The credit card portfolio declined by 5.6% year on year and 1.3% sequentially . Within the corporate portfolio , the total outstanding to NBFCs and HFCS was 8.5 ₹9.04 billion at March 31st , 2026 , compared to 7.9 ₹1.18 billion at December 31st , 2025 .

Speaker #3: The total outstanding loans to NBFCs and HFCS were about 4.6% of our advances at March 31st , 2026 . The builder portfolio , including construction , finance , lease , rental , discounting , term loans and working capital was ₹714.21 billion at March 31st , 2026 , compared to ₹680.83 billion at December 31st , 2025 .

Anindya Banerjee: The builder portfolio, including construction finance, lease, rental discounting, term loans, and working capital, was INR 714.21 billion at 31 March 2026, compared to INR 680.83 billion at 31 December 2025. The builder loan portfolio was 4.2% of our total loan portfolio. Our portfolio largely comprises well-established builders, and this is also reflected in the sequential increase in the portfolio. About 0.9% of the builder portfolio at 31 March 2026 was either rated double B and below internally or was classified as non-performing. On credit quality, the gross NPA additions were INR 42.42 billion in the current quarter compared to INR 51.42 billion in Q4 of last year. Recoveries and upgrades from gross NPAs, excluding write-offs and sales, were INR 30.68 billion in the current quarter, compared to INR 38.17 billion in Q4 of last year.

Speaker #3: The builder loan portfolio was 4.2% of our total loan portfolio . Our portfolio largely comprises well builders and this is also reflected in the sequential increase in the portfolio About 0.9% of the build portfolio at March 31st , 2026 , was either a double B , and below , internally , or was classified as non-performing On credit quality , the gross NPA additions were ₹42.42 billion in the current quarter , compared to ₹51.42 billion in Q4 of last year Recoveries and upgrades from gross NPAs , excluding write offs and sales , were ₹30.68 billion in the current quarter , compared to ₹38.17 billion in Q4 of last year .

Speaker #3: The net additions to gross NPAs were ₹11.74 billion in the current quarter , compared to ₹13.25 billion in Q4 of last year . The gross additions from the retail and rural portfolios were ₹31.45 billion in the current quarter , compared to ₹43.39 billion in Q4 of last year Recoveries and upgrades from the retail and rural portfolios were ₹22.93 billion in the current quarter , compared to ₹30.39 billion in Q4 of last year .

Anindya Banerjee: The net additions to gross NPAs were INR 11.74 billion in the current quarter, compared to INR 13.25 billion in Q4 of last year. The gross NPA additions from the retail and rural portfolios were INR 31.45 billion in the current quarter, compared to INR 43.39 billion in Q4 of last year. Recoveries and upgrades from the retail and rural portfolios were INR 22.93 billion in the current quarter, compared to INR 30.39 billion in Q4 of last year. The net additions to gross NPAs in the retail and rural portfolios were INR 8.52 billion in the current quarter, compared to INR 13 billion in Q4 of last year. The gross NPA additions from the corporate and business banking portfolios were INR 10.97 billion in the current quarter, compared to INR 8.03 billion in Q4 of last year.

Speaker #3: The net additions to gross NPAs in the retail and rural portfolios were ₹8.52 billion in the current quarter, compared to ₹13 billion in Q4 of last year.

Speaker #3: The gross NPA additions from the corporate and business banking portfolios were ₹10.97 billion in the current quarter, compared to ₹8.03 billion in Q4 of last year. Recoveries and upgrades from the corporate and business banking portfolios were ₹7.75 billion in the current quarter, compared to ₹7.78 billion in Q4 of last year.

Anindya Banerjee: Recoveries and upgrades from the corporate and business banking portfolios were INR 7.75 billion in the current quarter, compared to INR 7.78 billion in Q4 of last year. There were net additions to gross NPAs of INR 3.22 billion in the current quarter in the corporate and business banking portfolios, compared to INR 0.25 billion in Q4 of last year. The gross NPAs written off during the quarter was INR 17.68 billion. Further, there was sale of NPAs of INR 1.12 billion for cash in the current quarter. The non-fund outstanding to borrowers classified as non-performing was INR 21.74 billion as of 31 March 2026, as compared to INR 22.29 billion as of 31 December 2025. The loans and non-fund outstanding to performing corporate borrowers rated double B and below was INR 35.19 billion at 31 March 2026, as compared to INR 33.92 billion at 31 December 2025. This portfolio was about 0.2% of our advances at 31 March 2026.

Speaker #3: There were net additions to gross NPAs of ₹33.22 billion in the current quarter. In the corporate and business banking portfolios, this compares to ₹0.25 billion in Q4 of last year.

Speaker #3: The gross NPAs written off during the quarter was ₹17.68 billion. Further, there was a sale of NPAs of ₹1.12 billion for cash in the current quarter.

Speaker #3: The Non-fund outstanding to borrowers classified as non-performing was ₹21.74 billion as of March 31st , 2026 . As compared to ₹22.29 billion as of December 31st , 2025 .

Speaker #3: The loans and Non-fund outstanding to performing corporate borrowers rated double B and below , was ₹35.19 billion at March 31st , 2026 . As compared to ₹33.92 billion at December 31st , 2025 .

Speaker #3: This portfolio was about 0.2% of our advances at March 31st , 2026 . The total fund based outstanding to all standard borrowers under resolution as per various guidelines declined to ₹14.96 billion at March 31st , 2026 from ₹16.66 billion at December 31st , 2025 .

Anindya Banerjee: The total fund based outstanding to all standard borrowers under resolution as per various guidelines declined to INR 14.96 billion at 31 March 2026, from INR 16.66 billion at 31 December 2025. At the end of March, the total provisions, other than specific provisions on fund based outstanding to borrowers classified as non-performing, were INR 227.1 billion or 1.5% of loans. This includes the contingency provisions of INR 131 billion, as well as general provision on standard assets, provisions held for non-fund based outstanding to borrowers classified as non-performing, fund and non-fund based outstanding to standard borrowers under resolution, and the double B and below portfolio. The bank also continues to hold additional standard asset provision of INR 12.83 billion made in Q3 as directed by RBI in respect of the agricultural priority sector portfolio. Moving on to the P&L details.

Speaker #3: At the end of March , the total provisions other than specific provisions on fund based outstanding to borrowers classified as non-performing were ₹227.1 billion , or 1.5% of loans This includes the contingency provisions of ₹1.31 billion , as well as general provision on standard assets provisions held for Non-fund based outstanding to borrowers classified as non-performing fund and Non-fund based .

Speaker #3: Outstanding to standard borrowers under resolution and the double B and below portfolio . The bank also continues to hold additional standard asset provision of ₹12.83 billion made in Q3 , as directed by RBI in respect of the Agricultural priority sector portfolio Moving on to the PNL , details net interest income increased by 8.4% year on year and 4.8% sequentially to two ₹29.79 billion .

Anindya Banerjee: Net interest income increased by 8.4% year-on-year and 4.8% sequentially to INR 229.79 billion in this quarter. The net interest margin was 4.32% in this quarter, compared to 4.30% in the previous quarter. The cost of deposits was 4.43% in this quarter compared to 4.55% in the previous quarter. The benefit of interest on tax refund was five basis points in the current quarter compared to one basis point in the previous quarter. The margins for the quarter reflect the impact of external benchmark link loans repricing of term deposits, and seasonally lower interest reversal on the KCC portfolio. The net interest margin in FY 2026 was 4.32%, similar to FY 2025.

Speaker #3: In this quarter . The net interest margin was 4.32% in this quarter , compared to 4.30% in the previous quarter The cost of deposits was 4.43% in this quarter , compared to 4.55% in the previous quarter .

Speaker #3: The benefit of interest on tax refund was five basis points in the current quarter , compared to one basis point in the previous quarter The margins for the quarter reflect the impact of external benchmark linked loans , repricing , repricing of term deposits and seasonally lower interest reversal on the KCC portfolio .

Speaker #3: The net interest margin in FY 2026 was 4.32% , similar to FY 2025 . Of the total domestic loans , interest rates and about 56% of the loans are linked to the repo rate and other external benchmarks .

Anindya Banerjee: Of the total domestic loans, interest rates on about 56% of the loans are linked to the repo rate and other external benchmarks, 13% to MCLR and other older benchmarks, and the remaining 31% of loans have fixed interest rates. Non-interest income, excluding treasury, grew by 5.6% year-on-year to INR 74.15 billion in Q4 of fiscal 2026. Fee income increased by 7.5% year-on-year to INR 67.79 billion in this quarter. Fees from retail, rural, and business banking customers constituted about 78% of the total fees in this quarter. Dividend income from subsidiaries was INR 6.31 billion in this quarter compared to INR 6.75 billion in Q4 of last year. On costs, the bank's operating expenses increased by 12% year-on-year in this quarter and 11.5% year-on-year in FY 2026. Employee expenses increased by 8.8% year-on-year and non-employee expenses increased by 14% year-on-year in this quarter.

Speaker #3: 13% to Mclr and other older benchmarks , and the remaining 31% of loans have fixed interest rates . Non-interest income , excluding Treasury , grew by 5.6% year on year to ₹74.15 billion in Q4 of fiscal 2026 .

Speaker #3: Fee income increased by 7.5% year on year to ₹67.79 billion in this quarter Fees from retail , rural and business banking customers constituted about 78% of the total fees in this quarter Dividend income from subsidiaries was ₹6.31 billion in this quarter , compared to ₹6.75 billion in Q4 of last year On costs .

Speaker #3: The bank's operating expenses increased by 12% year on year . In this quarter , and 11.5% year on year in FY 2026 . Employee expenses increased by 8.8% year on year and non expenses increased by 14% year on year in this quarter Our branch count has increased by 126 in Q4 and 528 in FY 2026 .

Anindya Banerjee: Our branch count has increased by 126 in Q4 and 528 in FY 2026. We had 7,511 branches as of 31 March 2026. The sequential increase in operating expenses primarily reflects the impact of market movements resulting in higher provisions for retiral benefits. The technology expenses were about 11% of our operating expenses in FY 2026. The total provisions during the quarter were INR 0.96 billion or 0.5% of core operating profit, and 0.03% of average advances compared to the provisions of INR 8.91 billion in Q4 of last year, reflecting healthy asset quality and higher recoveries and write-backs. The credit cost was 38 basis points in FY 2026, adjusted for the additional standard asset provision in respect of the agricultural priority sector portfolio and the corporate recoveries. The credit cost was under 50 basis points in fiscal 2026.

Speaker #3: We had 7511 branches as of March 31st , 2026 . The sequential increase in operating expenses , primarily reflects the impact of market movements , resulting in higher provisions for retiral benefits .

Speaker #3: The technology expenses were about 11% of our operating expenses in FY 2026 . The total provisions during the quarter were ₹0.96 billion , or 0.5% of core operating profit and 0.03% of average advances compared to the provisions of ₹8.91 billion in Q4 of last year , reflecting healthy asset quality and higher recoveries , and write back .

Speaker #3: The credit cost was 38 basis points in FY 2026 , adjusted for the additional standard asset provision in respect of the agricultural sector , portfolio and the corporate recoveries , the credit cost was under 50 basis points in fiscal 2026 .

Speaker #3: The profit before tax , excluding Treasury , grew by 10.1% year on year to ₹182.09 billion in Q4 , and by 7.1% year on year to 6.50.2 ₹1 billion in FY 2026 .

Anindya Banerjee: The profit before tax, excluding treasury, grew by 10.1% year-on-year to INR 182.09 billion in Q4 and by 7.1% year-on-year to INR 650.21 billion in FY 2026. There was a treasury loss of INR 1.06 billion in this quarter as compared to a loss of INR 1.57 billion in the previous quarter and a gain of INR 2.99 billion in Q4 of last year, primarily reflecting market movements and including the impact of capping of FX net open positions in the onshore market as per recent RBI guidelines. The tax expense was INR 44.01 billion in this quarter compared to INR 41.43 billion in the corresponding quarter last year. The profit after tax grew by 8.5% year-on-year to INR 137.02 billion in this quarter. The profit after tax grew by 6.2% year-on-year to INR 501.47 billion in FY 2026. The consolidated profit after tax grew by 9.3% year-on-year to INR 147.55 billion in this quarter.

Speaker #3: There was a Treasury loss of ₹1.06 billion in this quarter, as compared to a loss of ₹1.57 billion in the previous quarter, and a gain of ₹2.99 billion in Q4 of last year, primarily reflecting market movements and including the impact of capping of FX open positions in the onshore market.

Speaker #3: As per recent RBI guidelines, the tax expense was ₹44.01 billion in this quarter, compared to ₹41.43 billion in the corresponding quarter last year.

Speaker #3: The profit after tax grew by 8.5% year on year to ₹7.02 billion in this quarter. The profit after tax grew by 6.2% year on year to ₹501.47 billion in FY 2026.

Speaker #3: The consolidated profit after tax grew by 9.3% year on year to 1.4 ₹7.55 billion . In this quarter . The consolidated profit after tax grew by 6.2% year on year to 5.4 ₹2.08 billion in FY 2026 .

Anindya Banerjee: The consolidated profit after tax grew by 6.2% year-on-year to INR 542.08 billion in FY 2026. The details of the financial performance of key subsidiaries are covered in slides 33 to 35 and 54 to 59 in the investor presentation. The annualized premium equivalent of ICICI Life increased to INR 106.41 billion in FY 2026 from INR 104.07 billion in FY 2025. The value of new business increased to INR 26.29 billion in FY 2026 from INR 23.70 billion in FY 2025. The value of new business margin was 24.7% in FY 2026 compared to 22.8% in FY 2025. The profit after tax of ICICI Life increased to INR 16 billion in FY 2026 from INR 11.89 billion in FY 2025, and INR 6.09 billion in this quarter from INR 3.86 billion in Q4 of last year. The gross direct premium income of ICICI General increased to INR 287.12 billion in FY 2026 from INR 268.33 billion in FY 2025.

Speaker #3: The details of the financial performance of key subsidiaries are covered in slides 33 to 35 and 54 to 59 in the investor presentation. The annualized premium equivalent of ICICI Life increased to ₹106.41 billion in FY2026 from ₹104.07 billion in FY2025.

Speaker #3: The value of new business increased to ₹26.29 billion in FY 2026 , from ₹23.70 billion in FY 2025 . The value of new business margin was 24.7% in FY 2026 , compared to 22.8% in FY 2025 .

Speaker #3: The profit after tax of ICICI life increased to ₹16 billion in FY 2026 , from ₹11.89 billion in FY 2025 and ₹6.09 billion in this quarter , from ₹3.86 billion in Q4 of last year .

Speaker #3: The gross Direct premium income of ICICI general increased to ₹287.12 billion in FY 2026 from ₹268.33 billion in FY 2025 . The combined ratio stood at 103.4% in FY 2026 , compared to 102.8% in FY 2025 .

Anindya Banerjee: The combined ratios stood at 103.4% in FY 2026 compared to 102.8% in FY 2025. The profit after tax increased to INR 27.72 billion in FY 2026 from INR 25.08 billion in FY 2025. The profit after tax increased to INR 4.7 billion in this quarter from INR 5.1 billion in Q4 of last year. The profit after tax of ICICI AMC as per IND AS increased to INR 7.63 billion in this quarter from INR 6.92 billion in Q4 of last year. The profit after tax of ICICI Securities as per IND AS on a consolidated basis was INR 4.22 billion in this quarter, compared to INR 3.81 billion in Q4 of last year. ICICI Bank Canada had a profit after tax of CAD 4.4 million in this quarter compared to CAD 12.5 million in Q4 of last year, primarily reflecting the impact of reduction in benchmark interest rates and lower business volumes.

Speaker #3: The profit after tax increased to ₹27.72 billion in FY 2026 , from ₹25.08 billion in FY 2025 . The profit after tax increased to ₹5.747 billion in this quarter , from ₹5.1 billion in Q4 of last year .

Speaker #3: The profit after tax of ICICI AMC, as per Ind AS, increased to ₹7.63 billion in this quarter from ₹6.92 billion in Q4 of last year.

Speaker #3: The profit after tax of ICICI Securities, as per Ind AS on a consolidated basis, was ₹4.22 billion in this quarter, compared to ₹3.81 billion in Q4 of last year.

Speaker #3: ICICI Bank Canada had a profit after tax of $4.4 million in this quarter, compared to $12.5 million in Q4 of last year.

Speaker #3: Primarily reflecting the impact of reduction in the benchmark interest rates and lower business volumes ICICI Bank , UK had a profit after tax of 8 million USD in this quarter , compared to 6 million USD in Q4 of last year , as per India's ICSA , home Finance had a profit after tax of ₹2.49 billion in the current quarter , compared to ₹2.41 billion in Q4 of last year .

Anindya Banerjee: ICICI Bank UK had a profit after tax of $8 million in this quarter, compared to $6 million in Q4 of last year. As per Ind AS, ICICI Home Finance had a profit after tax of INR 2.49 billion in the current quarter, compared to INR 2.41 billion in Q4 of last year. With this, we conclude our opening remarks and we will now be happy to take your questions.

Speaker #3: With this, we conclude our opening remarks, and we will now be happy to take your questions.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone.

Operator 3: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Jayant Kharote from Axis Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and dot. Two participants are requested to use handsets.

Speaker #1: While asking a question, ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Jayant Kharoti from Axis Capital.

Speaker #1: Please go ahead

Speaker #4: Thank you for the opportunity and congratulations. Our first question is on Q4.

Jayant Kharote: Thank you for the opportunity and congratulations on our results. First question is on-

Speaker #1: I'm sorry, can you use the handset mode, please? The audio is not very clear.

Operator 3: Jayant, sorry, can you use the handset mode, please? Your audio is not very clear.

Speaker #5: Yes

Jayant Kharote: Yeah. Hello, am I audible now?

Speaker #4: Hello

Speaker #1: Yes. Please go ahead.

Operator 3: Yes. Please go ahead.

Speaker #4: Hi. Thank you for your question. The first question is on the...

Jayant Kharote: Thank you for the opportunity. First question is on the-

Speaker #1: I'm sorry, his line is disconnected. We'll move on to the next question from the line of Kunal Shah from Citigroup. Please go ahead.

Operator 3: I'm sorry, his line is disconnected. We'll move on to the next question from the line of Kunal Shah from Citigroup. Please go ahead.

Speaker #4: Yeah . So thanks for taking the question . So the first question is on the growth side . So particularly on retail , we had seen the good uptick out there , particularly when we look at the mortgages it's been up like almost a 4.7% .

Kunal Shah: Yeah. Thanks for taking the question. The first question is on the growth side. Particularly on retail, we had seen the good uptick out there, particularly when we look at the mortgages, it's been up like almost 4.7 odd %. We had seen the uptick even on the PL as well as the commercial vehicle side. On mortgages, is it like the competition is coming off, the rates are getting attractive? Otherwise, we have always focused on ROA. What is actually driving this growth on the mortgages side in particular quarter-on-quarter? The second question is on deposits. Deposits still seems to be slightly slower compared to that of the loan growth and we have been losing the market share. Maybe a couple of years back, we have gained quite a bit of market share on CASA and all.

Speaker #4: And we had seen the uptick even on the PL as well as the commercial vehicle side. So on mortgages, is it like the competition is coming up, getting attractive?

Speaker #4: Otherwise we have always focused on on ROA . So what is actually driving this growth on the mortgage side in particular And the second question is on deposit deposits seems to be slightly slower compared to for the longer term .

Speaker #4: We have been in the market share. Maybe a couple of years where we have gained quite a bit of market share on CASA and all.

Speaker #4: But I think now the overall deposit growth is lower in the system. So what will be our stance overall going into the next year?

Kunal Shah: I think now the overall deposit growth is lower than the lending system. What will be our stance on the overall deposit growth getting into next year?

Speaker #3: So first on the growth in mortgages . I think as we may have discussed in the past , you know we maybe if we look 2 to 3 quarters ago , we were probably probably holding back a little because of both the benchmark risk and the spreads over the benchmark .

Anindya Banerjee: First on the growth in mortgages. I think, as we may have discussed in the past, maybe if we look back two to three quarters ago, we were probably holding back a little because of both the benchmark risk and the spreads over the benchmark. I think as the benchmark has settled, it has given us the space to grow that portfolio. That is what you have seen over the last two quarters and more particularly in this quarter. It is of course a competitive market, but we are within that trying to operate and price appropriately across the spectrum, also focusing very much on the entire customer 360 aspect, which we do in all our businesses.

Speaker #3: I think as the benchmark has settled , it has given us the space to grow that portfolio . And that is what you have seen over the last , you know , two quarters and more particularly in this quarter .

Speaker #3: And we continue to it is , of course , a competitive market , but we are within that trying to operate . And , you know , price appropriately across the spectrum Also focusing very much on the entire customer 360 aspect , which we do in all our businesses on the deposit side , I think , you know , while the , you know , the , it looks like the loan growth of 15% and deposit growth of 11% on an average basis , they are pretty closely matched .

Anindya Banerjee: On the deposit side, I think while it looks like a loan growth of 15% and a deposit growth of 11%, on an average basis, they are pretty closely matched and an average deposit growth would also be very similar to the period end deposit growth, while average loan growth would be closer to the average deposit growth. If you look at it from an LCR perspective also, we continue to be very comfortable at about 125% average for the quarter. We are quite comfortable on the deposit side and CASA ratios are also holding up well. That should support a healthy level of loan growth.

Speaker #3: I mean , average deposit growth would also be very similar to the period end deposit growth , while average loan growth would be , you know , closer to the average deposit growth So , you know , if you look at it from an LCR perspective , also , we are continue to be very comfortable at about 125% average for the quarter .

Speaker #3: So , you know , we are quite comfortable on the deposit side . And Casa ratios are also holding up well . So you know that that should support a healthy level of loan growth .

Speaker #4: Sorry. So, you mentioned average deposit growth is almost 10.8%. Okay. So, you mean to say maybe the average loan growth then?

Kunal Shah: Sorry. You mentioned average deposit growth is almost 10.8%, okay? You mean to say maybe if the average loan growth then-

Anindya Banerjee: Yeah.

Kunal Shah: That's showing that, yeah.

Speaker #3: Yeah .

Speaker #4: So so in .

Speaker #5: That .

Speaker #4: Yeah .

Speaker #3: The gap would not be like an 11 to 15 gap. It will be a lower gap, and that much is fine.

Anindya Banerjee: The gap would not be like a 11 to 15 gap. It will be a lower gap, and that much is fine. On an overall liquidity and LCR basis, we are pretty comfortable. Deposit growth is not something that will constrain us from pursuing loan growth. The deposit flows are more than adequate and healthy.

Speaker #3: And overall, on liquidity and LCR basis, we are pretty comfortable. So deposit growth is not, you know, something that will constrain us from pursuing loan growth.

Speaker #3: Deposit growth. You know, the deposit flows are more than adequate and healthy.

Speaker #4: Sure. And lastly, in terms of the provisioning—so when we look at the overall provisioning, it was quite low during the quarter.

Kunal Shah: Sure. Lastly, in terms of the provisioning, when we look at the overall provisioning, quite low during the quarter. Were there any write-backs which have happened or released which have been there during the quarter? Maybe the overall recoveries still seems to be pretty much in line with the last quarter, but was there any provisioning release in any of the line item?

Speaker #4: So, were there any write-backs which have happened or releases which have been there during the quarter? Maybe the overall recovery still seems to be pretty much in line with the last quarter.

Speaker #4: But was there any provisioning released in any of the line items?

Speaker #3: So I think a couple of things on the provisioning side . One , if you look at when the even on a year on year basis on the retail side , the net additions are lower and in particular over the last few quarters , the additions to NPAs on the unsecured side , which get provided pretty aggressively , have been coming down So that has , you know , brought down the provisioning requirements even on the retail side .

Anindya Banerjee: I think a couple of things on the provisioning side. One, if you look at even on a year-on-year basis on the retail side, the net additions are lower. In particular, over the last few quarters, the additions to NPAs on the unsecured side, which get provided pretty aggressively, have been coming down. That has brought down the provisioning requirements even on the retail side. Plus, I would say we had a somewhat higher level of recoveries and write-backs on the corporate portfolio, including recoveries from written-off accounts, which has resulted in the provisioning for this quarter being at a pretty low level. Overall for the year, as we said on the call, we were at 38 basis points, and if we kind of adjust out the one-time KCC provision and also the corporate recoveries, we would be below 50 basis points.

Speaker #3: Plus , I would say we had a somewhat higher level of recoveries . And right backs on the corporate portfolio , including recoveries from written off accounts , which has , you know , resulted in the provisioning for this quarter being at a pretty low level overall for the year .

Speaker #3: As we said on the call , we were at , you know , 38 basis points . And if we signed up , adjust out the , the , the one time KCC provision and also the , the , you know , corporate recoveries , we would be , you know , below 50 basis points .

Anindya Banerjee: The underlying credit cost remains pretty stable.

Speaker #3: So the underlying credit cost remains pretty stable.

Kunal Shah: Okay. Maybe for Q4, nothing in particular, maybe we are leaving to full year. Q4, because if I look at recoveries in Corporate and Business Banking, it seems to be almost similar at INR 750, 775 crores. Nothing appears to be there in terms of higher recoveries in Q4 in Corporate.

Speaker #4: Okay . So maybe for Q4 , nothing in particular . Maybe we are into full year , but because if I look at the recovery using corporate and business banking , it seems to be almost similar at seven 57 , 75 crores .

Speaker #4: So, nothing appears to be there in terms of higher recoveries in Q4 in corporate.

Anindya Banerjee: That's a recovery from the gross NPL. As I said, we would have also a recovery from the

Speaker #3: So that's the recovery from the gross NPAs . As I said , we would have also a recovery from the written off accounts that gets , you know , that that gets netted off in the provision line item that would have been on the somewhat higher side in this quarter .

Kunal Shah: Got it. Yeah.

Anindya Banerjee: written-off accounts that gets.

Kunal Shah: Yeah

Anindya Banerjee: ... that gets netted off in the provision line item that could have been on the somewhat higher side in this quarter.

Kunal Shah: Got it. That helps. Yeah. Thanks, and all the best. Yeah.

Speaker #4: Got it . That helps . Yeah . Thanks . Thanks and all the best . Yeah .

Operator 3: Thank you. Next question is from the line of Nitin Aggarwal from Motilal Oswal. Please go ahead.

Speaker #1: Thank you. Next question is from the line of Nitin Agarwal from Motilal Oswal. Please go ahead.

Nitin Aggarwal: Yeah. Hi, good evening, and congrats on strong performance once again. The first question, Anindya, is on the fee income growth. How do you look at this over the coming year? What steps are we taking to drive better traction on this line?

Speaker #3: Yeah . Hi . Good evening . And congrats on strong performance . Once again , the first question is around the fee income growth .

Speaker #3: How do you look at this over the coming year . What steps are we taking to drive better traction on this line So I , you know , I guess if we look at the broad areas of fee income that we focus on , I think on the transaction banking in which I would include both all the trade aspects as well as forex and derivatives .

Anindya Banerjee: I guess if we look at the broad areas of fee income that we focus on, I think on the transaction banking, in which I would include both all the trade aspects as well as Forex and derivatives, and on the deposit account linked fees, deposits, Demat, et cetera, I think we are doing reasonably well. On the cards and payment side, this year has been a little slow. We have not grown as much there in terms of fees, and that would be one area for us to focus on. I think more recently, as the loan growth has picked up, the lending linked fees have also picked up, and we will hopefully see that momentum sustained going forward. This is something we'll have to keep calibrating.

Speaker #3: And on the , you know , the deposit account linked fees , deposits , demat , etc. . I think we have , we are doing reasonably well on the cards and payment side .

Speaker #3: This year has been a little slow. We have not grown as much there in terms of fees, and that would be one area.

Speaker #3: For us to focus on. I think more recently, as the loan growth has picked up, the lending-linked fees have also picked up, and we will hopefully see that momentum sustain going forward.

Speaker #3: But this is something we'll have to keep calibrating, okay. And can you also give some color as to what has been the impact from RBI's recent foreign currency control regulations that they came up with in respect to the net open position and the NDF regulations, as to how much has been the impact on the other income and any losses that we have incurred because of that this quarter?

Nitin Aggarwal: Okay. Can you also give some color as to what has been the impact from RBI's recent foreign currency control regulations that they came up with respect to the net open position and the NDF regulations as to how much has been the impact on the other income and any losses that we have incurred because of that this quarter?

Anindya Banerjee: We have a net treasury loss of INR 1.06 billion. That's after taking into account the impact of the mark-to-market as of 31 March on the net, the swaps, the forwards. That's factored into those numbers.

Speaker #3: So we have a net loss of ₹1.606 billion . That includes , you know , that's after taking into account the impact of the mark to market as of March 31st on the the , the , the , the net , the swaps , the forwards .

Speaker #3: So that's factored into those numbers . Okay , okay . Sure . And the last question is around the growth . We have seen a very strong pickup in the system numbers .

Nitin Aggarwal: Okay. Sure. The last question is around the growth. We have seen a very strong pickup in the system and even ICICI Bank in the last two quarters have picked up very well on the growth front. How do you look at this momentum going into FY27? Is this something that you will think that will pick up steam further or is it kind of has already reached the high point? I mean, overall, the growth will broad base from here further with respect to unsecured loans and some of the other segments which are not contributing, like mortgage has started to pick up now. Or you think that 16-odd% growth where we are right now is already on the upper end that we are looking at?

Speaker #3: Even in the last two quarters, we have picked up very well on the growth front. How do you look at this momentum going into FY27?

Speaker #3: Is this like a something that you will think that will pick steam further , or is it kind of has already reached the high point ?

Speaker #3: I mean, overall, the growth will be broad-based from here further, in respect to unsecured loans and some of the other segments which are not contributing, like mortgages, which have started to pick up now.

Speaker #3: Or do you think that 16% growth, where we are right now, is already on the upper end that we are looking at?

Anindya Banerjee: We wouldn't get into giving a growth number. I think that post all the measures that were taken at a policy level through last year, and from our own side, I think with some of the factors like the interest rates stabilizing, benchmark stabilizing, growth has picked up, and the general outlook on the economy has been quite positive. Of course, more recently since March, the conflict in West Asia has clouded the outlook in the sense that it has created some amount of uncertainty. From our side, I think we believe we have a strong franchise, very healthy capital levels, and strong funding and liquidity. We would want to leverage that to grow the business within our parameters of risk acceptance.

Speaker #6: I wouldn't we wouldn't get into giving a growth number . I think that post . All the measures that were taken at a policy level through last year and from our own side , I think with some of the factors like the interest rates stabilizing benchmark , stabilizing growth has has picked up and , you know , the economy , general outlook on the economy has been quite positive .

Speaker #6: Of course, more recently, since March, the conflict in West Asia has clouded the outlook in the sense that it has created some amount of uncertainty.

Speaker #6: But from our side, I think we believe we have a strong franchise, very healthy capital levels, and strong funding and liquidity.

Speaker #6: So we would want to leverage that to grow the business within our , you know , parameters of risk , acceptance , right .

Nitin Aggarwal: Right. Sorry if I can squeeze one more and especially on the credit cost line, wherein I think everybody has been waiting for some normalization, some uptick in credit costs in the banking system, and yet you have reported a sharp improvement here again. While our guidance remains below 50 basis point, in terms of your own confidence and assessment, do you feel more confident now versus how things were in the prior years? Because our guidance in general has been sub 50 over the years.

Speaker #3: And if I can squeeze one more, and especially on the credit cost line, wherein I think everybody has been waiting for some normalization, some uptick in credit costs in the banking system.

Speaker #3: And yet we have reported a sharp improvement here . Again , while our guidance remains below 50 basis point . But in terms of your own confidence and assessment , do you feel more confident now versus how things were in the prior years ?

Speaker #3: Because our guidance in general has been sub-50 over the years. So how do you see and compare this now versus what you have guided in the past?

Nitin Aggarwal: How do you see and compare this now versus what we have guided in the past?

Anindya Banerjee: I would think if you look at the different segments of the business, I think the corporate sector is pretty strong and they are well-funded with healthy balance sheets, and significant resilience, I would say. On the retail side, I think banks, including us, have been reasonably sensible about credit selection, and the customers have also held up well. We had maybe a year and a half, two years ago, some increase in delinquencies on the personal loan side, but with regulatory action and with the steps taken by banks, that also was fairly quickly contained. That is showing up in these very healthy credit numbers. While there are these externalities to be monitored, we don't, at the moment, see any cause for concern as such.

Speaker #6: So, I would think if you look at the different segments of the business, I think the corporate sector is pretty strong, and they are well funded with healthy balance sheets and significant resilience.

Speaker #6: I would say . And on the retail side , I think banks , including us , have been reasonably sensible about credit selection and the customers have also , you know , have have held up well .

Speaker #6: We had, maybe a year, a year and a half, or two years ago, some increase in delinquencies on the personal loan side.

Speaker #6: But with regulatory action, and with the steps taken by banks, that also was fairly quickly contained. So that is showing up in these very healthy credit numbers.

Speaker #6: And, you know, while there are these externalities to be monitored, we don't at the moment see any cause for concern as such.

Anindya Banerjee: The other portfolio, which is reasonably large now and has grown rapidly over the last few years, is the whole business banking portfolio. Again, one would have to monitor any potential impact of the external events on that. I would say that is a portfolio, at least to the extent that we have a track record, has been tested through COVID, the energy dislocation of 2022, and then the whole tariff issue, and has held up reasonably well. That gives us some degree of confidence, but we will monitor it as we go along.

Speaker #6: The other portfolio , which is , you know , reasonably large now and has grown rapidly over the last few years , is the whole business banking portfolio .

Speaker #6: And again , one would have to monitor any potential impact of the external events on that . But I would say that that is a portfolio , at least to the extent that we have a track record , has been tested through Covid .

Speaker #6: The energy dislocation of , you know , 2022 . And then the whole tariff issue and has held up reasonably well . So that gives us some degree of confidence that we will monitor it as we go along .

Nitin Aggarwal: Right. Thanks, Anindya Banerjee. Thanks for all the insights. Wish you all the best.

Speaker #3: Right. Thanks. Thanks for all the insights. Wish you all the best.

Operator 3: Thank you. Next question is from Mahrukh Adajania from Nuvama Wealth Management Ltd. Please go ahead.

Speaker #1: Thank you . Next question is from Mahrukh Adajania from Tata Capital . Please go ahead . Hi . Congratulations . I had a couple of questions .

Mahrukh Adajania: Yeah. Hi. Congratulations. I have a couple of questions. Firstly, after this quarter, would you have tightened any credit parameter or any credit rule going into FY27, or it's business as usual or growth as usual across segments, even small segments? That's my first question. Secondly, if you see your yield on advances, what you've reported in the presentation, that's been coming off over the last two quarters. Of course, there have been the impact of rate cuts as well. Can we say that yields have now bottomed? Because your cost of funds has also come down materially. I believe most of the repricing is done there. In terms of yield, is this now close to the bottom? That's my second question.

Speaker #1: Firstly, after this war, would you have tightened any credit perimeter or any credit rule going into FY27, or is it business as usual or growth as usual across segments, even small segments?

Speaker #1: So that's my first question . Secondly , if you see your yield on advances , what you reported in the presentation , that's been coming off over the last two quarters , of course , there have been the impact of rate cuts as well , but can we say that yields have now bottomed because your cost of funds has also come down materially .

Speaker #1: So, and I believe most of the repricing is done there. So, in terms of yield, is this now close to the bottom?

Speaker #1: That's that's my second question

Anindya Banerjee: On the first question side, of course, we have looked at and continue to look at regularly all the potential sectoral impact as well as the impact at a client level. I would not say that we have specifically tightened anything or are excluding any segment, but we have our understanding of which are the segments that potentially require closer monitoring, and we are doing that and we will calibrate our actions as we go along. Overall, I think, as I said, we are continuing to focus on growing the business. On the yield, I think we have, of course, this quarter seen the impact of the December repo cut, and we will just have to, as we go along, look at how incremental pricing, et cetera, play out in the market, and we'll have some maybe amount of deposit repricing also.

Speaker #6: So on the first question , side , of course we have , you know , looked at and continue to look at regularly all the potential sectoral impact as well as the impact at a client level .

Speaker #6: I would not say that we have specifically tightened anything or are excluding any segment , but , you know , we we have our understanding of which are the segments that are potentially need , require closer monitoring .

Speaker #6: And we are doing that . And we will calibrate , you know , our actions as we go along . Overall , I think , as I said , we are continuing to focus on growing the business on the yield .

Speaker #6: I think we have , of course , you know , this quarter seen the impact of the December repo cut and we will , you know , we just have to as we go along , look at how incremental pricing , etc.

Speaker #6: play out in the market . And you know , we'll have some maybe amount of deposit repricing also . So I guess at the margin level , we continue to look at sort of range bound margins are unlikely to move up .

Anindya Banerjee: I guess at a margin level, we continue to look at sort of range-bound margins, unlikely to move up, but should be broadly in this range, is what we would think.

Speaker #6: But should be broadly in this range, is what we would think.

Mahrukh Adajania: Got it. I just have one last question. You explained the decline in credit cost. Was it more driven by unsecured slippage coming down or more by corporate slippage this quarter? I mean, more by corporate recoveries.

Speaker #1: Got it. And I just have one last question. You explained the decline in credit cost. Was it more driven by unsecured slippage coming down, or more by corporate slippage?

Speaker #1: This quarter? I mean more by corporate recoveries?

Anindya Banerjee: No. This quarter, of course, we saw a higher level of recoveries and write-backs from the corporate portfolio, including recoveries from written-off accounts. In general, the retail credit costs, as you can see from the retail net additions itself, have been coming down. The retail credit costs have also been coming down. Within that, the unsecured has been moderating. Secured was anyway pretty stable. That is having a beneficial impact on the provision.

Speaker #6: No . So this quarter , of course , we saw higher levels of recoveries . And right backs on the corporate portfolio , including recoveries from written off accounts .

Speaker #6: But in general, the retail credit costs, as you can see from the retail net additions itself, have been coming down.

Speaker #6: So the retail credit costs have also been coming down . And within that , you know , the unsecured has been moderating . So , you know , secured was anyway pretty stable .

Speaker #6: So, that is having a beneficial impact on the provision.

Mahrukh Adajania: Okay, perfect. Thanks. Thanks a lot.

Speaker #3: Okay .

Speaker #1: Perfect . Thanks . Thanks a lot . Thank you . Next question is from the line of Seshadri Sen from Emkay Global . Please go ahead Seshadri lines are muted .

Operator 3: Thank you. Next question is from the line of Seshadri Sen from Emkay Global Financial Services. Please go ahead. Seshadri, your line's unmuted. Yes, please go ahead.

Seshadri Sen: Thank you for the opportunity. I have a couple of questions. One is, for the second successive quarter, your credit card book is contracting. Is that just the nature of the business, seasonal, or are you taking any interventions in terms of trying to boost profitability? Overall, if you could comment on how the profitability of the credit card business is trending because revolver rates are coming down, cost of acquisition seems to be moving a little bit.

Speaker #1: Yes. Thank you for the opportunity. I have a couple of...

Speaker #6: Questions .

Speaker #5: One is .

Speaker #1: For the second successive quarter , your credit card book is contracting . Is that just the nature of the business seasonal or are you taking any interventions in terms .

Speaker #1: Of trying to boost profitability and overall, if you could comment on how the profitability of the credit card business is trending because, you know, revolver rates are coming down, and cost of acquisition seems to be moving a little.

Speaker #5: Bit

Anindya Banerjee: I think in Q3, the decline we saw was really seasonal because there was a sharp buildup of the book towards the end of Q2 due to the festive season spend, which ran off in Q3. The small decline in Q4, I would say we can't really say that it is seasonal. It is really a function of spends and revolvers. From our perspective, I think we are focused on growing the business and growing it with the right set of customers in a profitable way. We have been seeing reasonably steady new customer acquisition. I think the level of revolvers, et cetera, has been an issue for the industry. That is something that we will have to deal with.

Speaker #6: So , you know , I think the in Q3 , the decline we saw was really seasonal because there was a sharp build up of the book towards the end of Q2 due to the festive season spend , which ran off in Q3 .

Speaker #6: The the small decline from in the fourth quarter , I would say , you know , we can't really say that it .

Speaker #5: Is

Speaker #6: Reasonable . It is really a function of spend and revolvers from our perspective , I think we are focused on , you know , growing the business and growing it with the right set of customers in a profitable way .

Speaker #6: And we have been seeing reasonably steady new customer acquisition. I think the level of revolvers, etc., has been an issue for the industry.

Speaker #6: So that is something that we will have to deal with , but we are we would hope to see better numbers in terms of growth and as I mentioned , when prior , one of the analysts earlier asked about fees on the fees as well , a profitability , I think , yes , I mean , at a at a very high level , if you look at over the last few years , the decline in the level of revolvers has impacted profitability .

Anindya Banerjee: We would hope to see better numbers in terms of growth, and as I mentioned when one of the analysts earlier asked about fees, on the fees as well. Profitability, I think, yes, at a very high level, if you look at over the last few years, the decline in the level of revolvers has impacted our profitability. It still remains a very profitable business and it is a business with many levers of profitability, including on the cost side, reward side, and et cetera. I think we keep tweaking those as well. Overall, I think it's a business one would continue to have a very strong focus on.

Speaker #6: But it still remains a very profitable business . And it is a business with many levers of profitability . You know , including , you know , the the kind of on the cost side reward side , etc.

Speaker #6: . So I think those , you know , we keep tweaking those as well . So overall , I think it's a business .

Speaker #6: One would, you know, continue to have a very strong focus.

Speaker #5: On .

Seshadri Sen: Thanks. My second question is on the corporate loan outlook. Both tactically in the short term, while the energy crisis and the war is on, and also from a cycle medium perspective, what are your growth aspirations? What are the key drivers? Are there any particular segments that you're looking at?

Speaker #1: Thanks and my second question is on the corporate loan outlook , both tactically in the short term . While the the energy crisis and the war is on and also form a medium perspective , what we what are your growth aspirations ?

Speaker #1: What are the key drivers? Are there any particular segments that you're looking at?

Anindya Banerjee: I think, we are very focused on the counterparty, and in terms of the quality and the overall business opportunity. I think our funnels are open, and we are in a constant dialogue with the clients and wherever there is a level at which it makes sense both for the client and the bank, the business happens. Over the last two quarters, we have seen a reasonably good accretion to the corporate book. We continue to see opportunities going ahead. I think with the better-rated clients, we will look through any short-term issues arising out of this crisis and see how we can work with them over the longer term.

Speaker #6: I think you know , we are very focused on the counterparty . And in terms of the quality and the overall business opportunity , I think , you know , our funnels are open and we are in a constant dialogue with the clients and wherever there is a , you know , a level at which , which where it makes sense both for the client and the bank , you know , the business happens over the last two quarters .

Speaker #6: We have seen a reasonably good accretion to the corporate book , and I , we we continue to see opportunities going ahead . And I think with the with the , you know , the , the , better rated clients , we will look through any , any short term issues arising out of .

Speaker #5: This .

Speaker #6: This crisis. And, and see what, how we can work with them over the longer term.

Speaker #5: Term

Seshadri Sen: Thank you so much.

Operator 3: Thank you, Seshadri Sen.

Speaker #1: Thank you so much .

Anindya Banerjee: Thank you.

Operator 3: Thank you. We'll take our next question from the line of Rikin Shah from IIFL Capital. Please go ahead.

Speaker #5: Thank you

Speaker #2: We'll take the next question from the line of Ricky from IIFL Capital. Please go ahead.

Rikin Shah: Hi, good evening. A few questions. First one is on OpEx. The OpEx growth about at 11.5%, 12% this year has been higher than the peers, perhaps due to the increase in the average remuneration for the employees. How should we think about it going into next year, especially when your volume growth is also picking up? Does this further rise in terms of the overall OpEx growth, or there are certain levers to bring that down? That's one. Second, Anindya, could you comment on the government SA balances where we were seeing some outflows? Have the trends stabilized, and should we start seeing some growth even in the institutional SA going ahead? Those are my two questions.

Speaker #3: Hi . Good evening . A few questions . First one is on opex . So the opex growth about at 11.5 , 12% this year has been higher than the peers , perhaps due to the increase in the average remuneration for the employees .

Speaker #3: So, how should we think about it going into next year, especially when your volume growth is also picking up? So, does this further rise in terms of the overall opex growth, or are there certain levers to bring that down?

Speaker #3: So that's one second on India . Could you comment on , you know , the government's balances where we were seeing some outflows , have the trends stabilized ?

Speaker #3: And should we start seeing some growth even in the institutional SA going ahead? So those are my two questions.

Anindya Banerjee: As far as OpEx is concerned, I think if we look at this year, more or less it has been in line with our expectations. I think a couple of areas where the costs have been somewhat higher than what we would have started out with. One is on the priority sector compliance, and the second is, to some extent, on the remuneration because of the labor code and a couple of other, like the market movement impact that we saw in March. The final numbers on business growth are a little ahead of OpEx growth, and we hope that that will be sustained over the next year. Definitely we would want to have OpEx growth at a level which is below the top line growth. That would be our objective.

Speaker #6: So, as far as the opex is concerned, you know, I think if we look at this year's, more or less, it has been in line with our expectations.

Speaker #6: I think a couple of areas where the costs have been somewhat higher than what we would have expected would have started out with...

Speaker #6: One is, you know, on the private sector compliance, and the second is to some extent on the remuneration, because of the labor code.

Speaker #6: And , you know , a couple of other , you know , like the the market movement impact that we saw in March and the final , you know , numbers on business growth are a little ahead of opex growth .

Speaker #6: And we hope that that will be , you know , sustained over over the next year . So , you know , definitely we would want to have opex growth at a level which is below the the top line growth that would be our objective

Rikin Shah: Right. The government SA balances?

Speaker #3: And the governments are balanced.

Anindya Banerjee: Yeah, government SA balances. As we had said last time, those are in the low teens as a proportion of the balances. I think this quarter it's been, maybe the level of rundown has been somewhat lower. Really, that's something that we will have to just bake into our plans and really focus on growing the money in bank, as we call it, from the other set of customers. Of course, this is something that will come and go as it comes and goes.

Speaker #6: Yeah . Governments are balances . So as we had said last time , those are , you know , in the low teens as a proportion of the balances , I think this quarter it's been , you know , we've maybe the , the level of rundown has been somewhat lower , but really that's something that we will have to just bake into our plans and really focus on growing the , you know , the , the money in the bank , as we call it , from the other set of customers .

Speaker #6: I'll, of course, this is something that will come and go as it comes.

Speaker #5: And goes .

Rikin Shah: Got it. If I can just squeeze in one last question. Could you comment on how much residual deposit repricing is remaining in your case?

Speaker #3: And if I can just squeeze in one last question, could you comment on how much residual deposit repricing is remaining in your case?

Anindya Banerjee: Won't really give a number of that kind, but I guess, maybe, till this last summer, our peak rates were more in the one-year kind of level. That's kind of the repricing horizon.

Speaker #6: Won't really give a , you know , a number of that time , but I guess , you know , maybe , you know , till till you know , till the last summer , our peak rates were more in the one year kind of level .

Speaker #6: So that's kind of the repricing horizon.

Rikin Shah: Okay, got it. Thank you.

Speaker #3: Okay .

Speaker #5: Thank you .

Operator 3: Thank you. Next question is from Param Subramanian from Investec. Please go ahead.

Speaker #2: Thank you. Next question is from Param Subramanian from Investec. Please go ahead.

Param Subramanian [Lead Analyst: Yeah. Hi, good evening. Thanks for taking my question. Firstly, on rural loans, so there is a sharp uptick in this quarter. What is driving that 18% quarter-on-quarter?

Speaker #4: Hi . Good evening . Thanks for taking my question . Firstly , on rural loans . So there is a sharp uptick in this .

Speaker #5: Quarter .

Speaker #4: So, what is driving that 18% quarter-on-quarter?

Anindya Banerjee: Part of it is due to, I think, over the last couple of quarters, higher demand for gold loans. We have also geared up our machinery. Some of it is not strictly rural, although we club it in that segment. It could be from a broader range of branches. That could be one of the drivers in addition to other elements of the portfolio.

Speaker #6: To . Part of it is due to , I think , over the last couple of quarters , higher demand for gold loans .

Speaker #6: And we have also geared up , you know , our machinery . I mean , some of it is .

Speaker #5: Not

Speaker #6: Strictly rural, although we club it in that segment. It could be from a broader range of branches. But that could be one of the drivers.

Speaker #6: In addition to other elements of the.

Speaker #5: Portfolio

Param Subramanian [Lead Analyst: Okay, got it. Where are we in terms of the issue that came up in the last quarter on the priority sector related provisioning? We have been talking about, say, recoveries of those provisions gradually over the next year. Any update you want to give on that?

Speaker #1: Okay .

Speaker #4: Got it. And where?

Speaker #6: Are we .

Speaker #4: In terms of the issue that came up in the last quarter on the on the , you know , the priority sector related provisioning .

Speaker #4: So, we have been talking about, say, recoveries of those provisions gradually over the next year. So, any update you want to give on that?

Speaker #5: That .

Anindya Banerjee: As we said earlier, as of March, we continue to hold those provisions. We are in the process of working through that portfolio, as we said, to try and bring it into conformity with the requirements of the agreed lending classification. Maybe we will have an update on that a quarter or so from now.

Speaker #6: So as , as as we said earlier , as of March , we continue to hold those provisions . We're in the process of working through that portfolio , as we said , to try and bring it into conformity with the with the with the requirements of the agri lending classification , and maybe , you know , we will have an update on that , you know , a quarter or so from .

Speaker #5: Now

Param Subramanian [Lead Analyst: Okay. Anindya, broadly, where are we in terms of, say, our PSL compliance, say on SMF, et cetera, since we are at-

Speaker #4: Okay . And broadly , where are we in terms of our PSL compliance on SMS , etcetera , since we are at the .

Anindya Banerjee: Pretty much I think the same picture. We would be compliant overall. We will have some shortfall on the small agri side. That's pretty much the same picture.

Speaker #6: I think the same picture . I mean , we would have , you know , some we would be compliant overall . We will have some shortfall on the , the , the small agri side .

Speaker #6: So, that's pretty much the same.

Speaker #5: Picture .

Param Subramanian [Lead Analyst: Okay. Thank you so much and congrats on the quarter.

Speaker #4: Okay. Thank you so much. And congrats on the quarter.

Anindya Banerjee: Thank you.

Speaker #5: Thank you .

Param Subramanian [Lead Analyst: Thank you.

Operator 3: Thank you. Next question is from the line of Kiran Engineer from CLSA. Please go ahead.

Speaker #2: Thank you, thank you. Next question is from the line of an engineer from CLSA. Please go ahead.

Kiran Engineer: Congratulations.

Speaker #1: Congratulations

Operator 3: Kiran, your audio is not very clear. Can you use the handset mode, please?

Speaker #2: Your audio is not very clear. Can you use the handset mode, please?

Kiran Engineer: Yeah, one second. Is it better now?

Speaker #3: Yeah. One second. Is it better?

Speaker #5: Now ?

Operator 3: Yes. Please go ahead.

Speaker #2: Yes . Please go ahead

Kiran Engineer: Hi. Congrats on the quarter. Firstly, just a clarification on the government deposits being in low teens. It's a low-teen share of total deposit or low-teen share of CA?

Speaker #3: Hi . Congrats on the quarter . Firstly , just a clarification on the government . Deposits being in low teens . It's low teens .

Speaker #3: Share of total deposit or share of right. Okay. So

Anindya Banerjee: CA.

Kiran Engineer: CA, right. Okay.

Anindya Banerjee: The government CA is a low teens share of CA.

Speaker #6: Is a share .

Speaker #5: Of

Kiran Engineer: Correct.

Speaker #3: Correct

Operator 3: Kiran, I'm sorry, you're sounding muffled.

Speaker #2: I'm sorry, you're sounding muffled.

Kiran Engineer: Okay. Can management hear me?

Speaker #3: Okay. I don't know if you can—management, can you hear me now?

Operator 3: Now it is fine. Go ahead.

Speaker #2: Now it is fine. Go ahead.

Kiran Engineer: Yeah. Okay, fair. I got the answer to the first question. On the second question, just wanted to understand on home loans. Firstly, is there also an element of lower prepayment rate driving the pickup in home loan growth for this quarter? Or is it just a question that now repo rate cuts have ended, as you said, and now you all are pushing growth?

Speaker #5: Yeah .

Speaker #3: Okay . So I got the answer to the first question . On the second question , just wanted to understand on home loans , firstly , is there also an element of lower prepayment rate driving the pickup in home loan growth for this quarter ?

Speaker #3: Or is it just a question that now repo rate cuts have ended, as you said, and now you all are pushing growth?

Anindya Banerjee: I would say it's more a pickup in disbursement.

Speaker #6: So I would say it's more a pickup in disbursement.

Kiran Engineer: More a pickup. Okay. Like to like, Anindya, let's say before the repo.

Speaker #3: More pickup. Okay. Like to like in India, let's say for the repo.

Operator 3: Kiran, sorry, we lost you again.

Speaker #2: Sorry, we lost you again.

Kiran Engineer: Oh, God. Is it better now?

Speaker #3: Is it better now ?

Operator 3: Yes.

Speaker #2: Yes .

Kiran Engineer: Yeah. Just pre-repo cut cycle to today, how much increment this quarter?

Speaker #3: Yeah. So just three repo cuts cycle to today. How much incremental? Of course.

Operator 3: No.

Kiran Engineer: Of course.

Anindya Banerjee: I think we're not able to hear you, Kiran. Maybe we can just take this offline. Yeah?

Speaker #6: They're not able to hear you. Maybe we can just take this offline.

Kiran Engineer: Yeah. Sure.

Speaker #3: Yeah, yeah, sure.

Speaker #5: Sure .

Operator 3: Thank you. We'll take our next question from the line of Chintan from Autonomous Research. Please go ahead.

Speaker #2: Thank you. We will take the next question from the line of Chintan from Autonomous Research. Please go ahead.

[Analyst] (Autonomous Research): Hey, good afternoon. Thanks for taking my question. How do we see the growth outlook for the coming few quarters? We're talking about nice growth in the system in this quarter, but clearly, it's too early to incorporate the supply shock into expectations. As we look forward, as we look into your books, as we see how corporates are getting impacted by this, how do you think both your book and systems on growth will develop over the next few quarters?

Speaker #1: Hey . Good afternoon . Thanks for taking my question .

Speaker #6: How do we .

Speaker #1: See the growth outlook for the coming few quarters? Are we talking about—

Speaker #6: Nice growth in the system in this quarter . But clearly it's too early to incorporate the supply shock into expectations . So as you look forward , you know , as you look into your books , as you see how .

Speaker #6: Corporates are getting impacted by this , how do you think both your book and system loan growth will develop over the next few quarters No , it's a very difficult to answer that question because , you know , the outlook on the the underlying

Anindya Banerjee: It's very difficult to answer that question because the outlook on the underlying is.

Operator 3: I'm sorry, sir, you're not audible. Ladies and gentlemen, please stay connected. We've lost the management line. Ladies and gentlemen, we have the management team back online. Chintan?

Speaker #2: I'm sorry , sir , you're not audible Ladies and gentlemen , please stay connected . We've lost the management line Ladies and gentlemen , we have the management team back online

[Analyst] (Autonomous Research): Hi. I'm still here. I think Anindya was answering my question. I'll let him finish.

Speaker #6: Hi . Hi . I'm still here . I think I was answering my question . I'll let him finish . Yeah , I , I don't know where the where the where pretty much from the .

Anindya Banerjee: Yeah, I don't know where you lost connection.

[Analyst] (Autonomous Research): Pretty much from the start.

Speaker #5: Start .

Anindya Banerjee: Yeah. Okay. Essentially, it's very difficult to make a prediction at the current time because this is an evolving situation. As we said, we believe the system is going into it with a reasonable degree of resilience. We will wait and see how the demand conditions pan out. I think as far as we are concerned, we see that we have strong levels of capital, liquidity, funding, and a large franchise, and we would continue to try to use that to grow the business. Of course, we'll have to keep calibrating the risk acceptance leverage as we go along.

Speaker #6: Yeah . Okay . Essentially it's very difficult to make a prediction at the , at the current time because this is an evolving situation , but as we said , we believe the system is going into it with a reasonable degree of resilience .

Speaker #6: So we will wait and see how the demand conditions pan out . I think as far as we're concerned , we see we we see , you know , that that we have a strong levels of capital liquidity funding and a large franchise .

Speaker #6: And we would continue to , you know , try to use that to grow the business . Of course , we'll have to keep calibrating the risk risk acceptance levels as we go .

Speaker #5: Along . But are you seeing anything in your corporate or business banking book that looks like , you know , production is falling , slowing down ?

[Analyst] (Autonomous Research): Are you seeing anything in your corporate or business banking book that looks like production is falling, slowing down, working capital limits are not getting utilized? Are you seeing any stress in your early indicators?

Speaker #5: You know , working capital limits are not getting utilized or , you know , is there any kind of kind of , are you seeing any stress in your early indicators ?

Anindya Banerjee: It's too early to make any call or generalization of that kind.

Speaker #6: It's too early to make any call or generalization of that.

Speaker #5: Kind . Okay . And then a quick follow up on your cost of deposit point . I think you said that there should be some more residual repricing left , but you also said that , you know , kind of take the duration as one year , which is a slightly contradictory .

[Analyst] (Autonomous Research): Okay. A quick follow-up on your cost of deposit point. I think you said that there should be some more residual repricing left, but you also said to take the duration as one year, which is slightly contradictory. Which is it? Is there more to go on cost of deposit in terms of residual repricing?

Speaker #5: So which is it? Is there kind of more to go on cost of deposit in terms of residual repricing?

Anindya Banerjee: I guess if you look at where the deposit rates were a little more than a year ago, they are at somewhat lower levels. In the last rate cut cycle happened in June, and then there were some further cuts, small cut in December. As I said, overall on the margin side, we expect it to be range bound from here on.

Speaker #6: So , you know , I guess if you look at where the deposit rates were a little more than a year ago , they are at somewhat lower levels than the last rate cut cycle happened in in June .

Speaker #6: And then there was some further cuts , you know , small cut in December . So as I said , the overall on the margin side , we don't we expect it to be rangebound from here .

Speaker #6: Now .

[Analyst] (Autonomous Research): Okay. Finally, on cost income ratio, this year, OPEX growth has led top line growth. Could we say we are committed to delivering positive jaws next year?

Speaker #5: Okay . And finally , on on cost income ratio , you know , this year opex growth has led top line growth or could we say we are committed to delivering positive jaws next year

Anindya Banerjee: We really look at the PPOP and the PBT post credit cost. It's not that we are looking at managing or targeting a particular cost-to-income metric. Obviously, our objective would be to grow revenues ahead of cost. We will see how it evolves. That's certainly the way in which we would like to drive the bank.

Speaker #6: Don't we really look at the pop and the PBT post credit costs . So it's not that we are , you know , looking at managing or targeting a particular cost to income metric .

Speaker #6: Obviously, our objective would be to grow revenues ahead of cost, but we will see how it evolves. That's certainly the way in which we would like to drive the bank.

[Analyst] (Autonomous Research): Thank you.

Speaker #5: Thank you .

Operator 3: Thank you. Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference back to management for closing comments. Over to you, sir.

Speaker #2: Thank you, ladies and gentlemen. We'll take that as the last question for today. I would now like to hand the conference back to management for closing comments.

Speaker #2: Over to you , sir

Anindya Banerjee: Thank you very much, and we'll be available to take questions if there are any follow-ups. Thank you.

Speaker #6: Thank you very much. We will be available to take questions if there are any follow-ups. Thank you.

Operator 3: Thank you. On behalf of ICICI Bank, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.