ICICI Bank Q4 preview: steady growth, strong asset quality seen; margins likely to stay stable

ICICI Bank is set to report its earnings for the quarter ended March 31, 2026 (Q4 FY26) on Saturday, April 18, with expectations pointing to a stable operational performance led by steady growth and resilient asset quality.The bank continues to remain in a strong execution phase, with no visible structural concerns in the franchise. For the March quarter, net interest income (NII) is expected to grow around 7% year-on-year, while pre-provision operating profit (PPOP) and profit after tax (PAT) are both likely to rise about 3% year-on-year, indicating steady earnings momentum.

Margins are expected to remain broadly range-bound, with net interest margin (NIM) seen at around 4.3% in FY26. Over the medium term, margins could gradually improve to 4.4%–4.5% over the next two years, supported by a favourable mix and stable funding costs.
Asset quality is likely to remain best-in-class, with gross non-performing assets (GNPA) estimated at around 1.4% and net non-performing assets (NNPA) at about 0.3%. Credit costs are expected to stay contained in the range of 45–50 basis points, reflecting continued balance sheet strength.On the growth front, loan growth is expected to be around 16% year-on-year, while deposits are likely to grow at approximately 15% in FY26, indicating a broadly balanced expansion trajectory.

Also Read | Why Macquarie prefers HDFC Bank and ICICI BankHowever, the key near-term overhang remains the potential for additional provisioning linked to the Reserve Bank of India’s priority sector lending (PSL) review. This is largely seen as a compliance-related adjustment rather than a reflection of underlying stress in the loan book.

The Mumbai-headquartered lender currently has a market capitalisation of ₹9.59 lakh crore and has delivered negative returns of around 6% over the past six months.