Q3 2026 · NSE · Oct 20, 2026

ICICIBANK Loan Growth Is 24%, Not 30%: Dollar Deposits Explain the Gap, Margin Slips

ICICI Bank's 30.0% loan growth is 24.1%, and its 27.1% deposit growth is 17.0%, once the bank's own figures leave out FCNR(B) dollar deposits and the loans against them. The net interest margin fell to 4.18% from 4.36% last quarter and 4.30% a year earlier, which management ties to the overseas branches' share of assets and a rise in retail term deposits.

Deposits, Loans, and a Swap Facility Doing Some of the Growing

ICICIBANK share price against profit before tax and its margin, last 12 quarters ICICIBANK share price against profit before tax and its margin, last 12 quarters. One graph by quarter: bars are the quarter's profit before tax in Rs. crore, with two lines over them, the share price at quarter-end and the profit before tax margin. Q3 FY24: share price Rs. 997, profit before tax 13,674, margin 73.2%; Q4 FY24: share price Rs. 1,093, profit before tax 14,321, margin 75.0%; Q1 FY25: share price Rs. 1,200, profit before tax 14,693, margin 75.1%; Q2 FY25: share price Rs. 1,273, profit before tax 15,490, margin 77.3%; Q3 FY25: share price Rs. 1,282, profit before tax 15,660, margin 76.9%; Q4 FY25: share price Rs. 1,348, profit before tax 16,774, margin 79.1%; Q1 FY26: share price Rs. 1,446, profit before tax 16,931, margin 78.3%; Q2 FY26: share price Rs. 1,348, profit before tax 16,384, margin 76.1%; Q3 FY26: share price Rs. 1,343, profit before tax 14,800, margin 67.5%; Q4 FY26: share price Rs. 1,206, profit before tax 18,103, margin 78.8%; Q1 FY27: share price Rs. 1,375, profit before tax 19,126, margin 78.4%; Q2 FY27: share price Rs. 1,322, profit before tax 19,725, margin 77.8%. Share price at quarter-end (Rs., left axis) Profit before tax margin, % (right axis) Profit before tax for the quarter (Rs. crore; bars from zero, values in the bottom row) Rs. 1,000 Rs. 1,200 Rs. 1,400 70% 75% 80% 13,674 14,321 14,693 15,490 15,660 16,774 16,931 16,384 14,800 18,103 19,126 19,725 Rs. 997 73.2% Q3 FY24 Rs. 1,093 75.0% Q4 FY24 Rs. 1,200 75.1% Q1 FY25 Rs. 1,273 77.3% Q2 FY25 Rs. 1,282 76.9% Q3 FY25 Rs. 1,348 79.1% Q4 FY25 Rs. 1,446 78.3% Q1 FY26 Rs. 1,348 76.1% Q2 FY26 Rs. 1,343 67.5% Q3 FY26 Rs. 1,206 78.8% Q4 FY26 Rs. 1,375 78.4% Q1 FY27 Rs. 1,322 77.8% Q2 FY27 Profit

Over these 12 quarters: share price Rs. 997 to Rs. 1,322 (+33%); profit before tax 13,674 to 19,725 Rs. crore; profit before tax margin 73.2% to 77.8%. One graph in actual numbers: bars are the quarter's profit before tax, over them the share price at quarter-end (left axis) and the profit before tax margin (right axis); each line is fitted to its own range, so read the timing, not the heights. Prices are adjusted for splits.

ICICI's headline 30.0% loan growth is 24.1% without FCNR(B) dollar deposits and the loans against them, and the net interest margin fell in the same quarter.

  • The situation: in the quarter ended September 30, 2026 (Q2 FY2027), profit after tax rose 20.1% to Rs. 14,843 crore, and the press release headlines higher deposit and loan growth.
  • The complication: the lines under the deposit and loan bullets exclude FCNR(B)» deposits (dollars that non-resident Indians hold with an Indian bank) and the loans against them: deposits grew 17.0%, not 27.1%.
  • The answer: management names two causes for the fall in the net interest margin», the overseas branches' growing share of assets and a large rise in retail term deposits; the domestic loan books are still growing.

One small part of the loan book, the overseas branches' loans, did almost half the quarter's growing

A loan book that was 3.1% overseas three months ago is now 7.8% overseas, and it produced 46.3% of the quarter's loan growth.

In plain words: FCNR(B) stands for Foreign Currency Non-Resident (Bank-held) deposits. In the opening remarks of its October 17, 2026 earnings call, the bank said it "has mobilised gross FCNR (B) deposits of about 18 billion USD, pursuant to Reserve Bank of India's swap facility." The filings also show lending against these deposits, though not how much: the press release's loan figure excludes "loans provided by international branches of the Bank against FCNR (B) deposits", and the prepared remarks mention fee income for "lending facilities against FCNR (B) deposits". The bank's growth figures leave out all FCNR(B) deposits and those loans. Recomputed from the filed totals, the deposits alone come to at least about $17.0 billion at the period-end rate (Rs. 2,049,874 crore less 1.170 x Rs. 1,612,825 crore a year earlier is Rs. 162,869 crore, divided by Rs. 95.83 to the dollar). It is a floor because it assumes the bank held no FCNR(B) deposits a year earlier. That is close to the $18 billion gross, but treating the exclusion as what the swap facility added is this post's inference, not a statement by the bank. Overseas borrowings, a funding line separate from deposits, also rose in the quarter, from Rs. 29,910 crore to Rs. 110,904 crore (up Rs. 80,994 crore), which matters because it is further overseas funding beyond the FCNR(B) deposits; the filings do not say what it funded.

The fingerprint is in the filed numbers. The bank's standalone "overseas book", the loans booked through international branches, grew from Rs. 50,275 crore to Rs. 142,954 crore in a single quarter. That increase of Rs. 92,679 crore is 46.3% of the bank's entire Rs. 200,320 crore rise in total standalone advances this quarter.

Margin fell to 4.18%, the lowest of the three quarters the bank's presentation shows (Q2 FY2026 4.30%, Q1 FY2027 4.36%)

Against last quarter, deposits cost more and the low-earning overseas book took a bigger share of loans; management says the overseas share and retail term deposits drove the fall.

  • Cheap deposits fell as a share. The average CASA» ratio, the share of deposits sitting in low-cost current and savings accounts (see the 2005 post for why that is the heart of the franchise), fell to 35.8%, from 39.2% a year earlier and 38.1% last quarter. Average CASA balances actually grew 10.7% year-on-year, but average term deposits grew 28.0% year-on-year and 12.1% in the quarter (the presentation's average-deposit table). The press release ties the ratio to FCNR(B): it says the ratio is "reflecting the increase in the term deposit base due to FCNR (B) deposit inflows."
  • Margin followed. The net interest margin, the gap between what the bank earns on loans and pays on deposits, fell 12 basis points year-on-year. Last quarter's 4.36% included 8 basis points of interest on a tax refund (4.28% without it), so the like-for-like sequential fall is 10 basis points, not 18; the benefit was "negligible" this quarter and a year ago. Cost of deposits rose to 4.50% from 4.41% last quarter, though it is below 4.64% a year earlier.
  • Mix explains most of the fall, not all of it. The overseas book's own margin improved (1.07% versus 0.98% a year earlier). But a book earning about a quarter of the domestic margin (4.32%) is now 7.8% of total advances instead of 3.1% last quarter, which pulls the blend down. The domestic margin itself also eased, from 4.37% a year earlier to 4.32%, and from 4.36% last quarter excluding the tax-refund benefit. As arithmetic: the gap between the domestic margin and the whole-bank margin widened from 7 basis points a year earlier (4.37% against 4.30%) to 14 now (4.32% against 4.18%), and from 8 last quarter (4.36% against 4.28% excluding the refund), so about 7 of the 12 basis points lost year-on-year (6 of the 10 like-for-like since last quarter) sit outside the domestic margin, which is where the overseas book's bigger share shows up; the filings do not split it.
  • Management names two causes and quantifies neither, and says the full impact comes in the third quarter. Anindya Banerjee in the prepared remarks: "the increase in proportion of the assets of overseas branches in the total assets and large sequential increase in the retail term deposit base have led to a moderation in margins," with "the full impact" still to come in the third quarter before an expected recovery. The first cause is the overseas build-up described above. The second is a large sequential rise in the retail term deposit base; the prepared remarks do not say how much of it is FCNR(B), but the press release ties the lower CASA ratio to FCNR(B) inflows into the term-deposit base (first bullet), and the filings do not say whether the two causes overlap.

Business banking and domestic corporate lending are growing 30% or more, and core operating profit is up 25.0%

Business banking (+33.8%) and domestic corporate lending (+30.6%), both domestic books that exclude the overseas loan book, grew by 30% or more year-on-year.

Business banking grew 33.8% year-on-year and domestic corporate lending 30.6% (presentation loan table). Core operating profit excluding dividend income, which is the cleaner read this quarter (see Beyond the Usual), grew 25.0%; that is the whole standalone bank's figure, overseas branches included, so it is not a measure of the domestic franchise alone. The domestic credit-to-deposit ratio actually fell to 84.0% from 87.5% last quarter (the presentation gives the ratio, on the domestic balance sheet, without a reason). This post's reading is that FCNR(B) inflows sit on the domestic deposit base while the loans booked against them sit on the international-branch loan book. So the domestic loan book, growing a respectable 6.8% in the quarter, was still outgrown by domestic deposits.

The Prescription

ICICI Bank should keep running the domestic franchise that does not need the swap facility to look good. That part of the quarter needs no asterisk.

What it should stop doing is headlining the growth rates that include FCNR(B) as the lead figure, with the lower number in a qualifying clause. None of this is a disclosure failure: every figure is in the filed results, and the press release prints the ex-FCNR(B) growth rates (17.0% for deposits, 24.1% for loans) as indented sub-bullets directly under the 27.1% and 30.0% headline bullets (press_release.txt lines 22-23 and 28-30). It is an emphasis choice. The headline bullet is the number that gets quoted, and the sub-bullet is the number that describes the underlying business: roughly six points of loan growth (30.0% against 24.1%) and ten points of deposit growth (27.1% against 17.0%) came from FCNR(B) deposits and the loans against them. I would lead with the ex-FCNR(B) figures and put the all-in figures in the sub-bullet. A gap this wide deserves at least equal billing with the headline, especially in a quarter when the margin also fell, which management ties partly to the overseas branches' share of assets.

Key Financial Metrics

ICICIBANK net revenue, profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK net revenue, profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the profit before tax margin as a percent of net revenue. Q3 FY24: net revenue 18,678, profit before tax 13,674, margin 73.2%; Q4 FY24: net revenue 19,093, profit before tax 14,321, margin 75.0%; Q1 FY25: net revenue 19,553, profit before tax 14,693, margin 75.1%; Q2 FY25: net revenue 20,048, profit before tax 15,490, margin 77.3%; Q3 FY25: net revenue 20,371, profit before tax 15,660, margin 76.9%; Q4 FY25: net revenue 21,193, profit before tax 16,774, margin 79.1%; Q1 FY26: net revenue 21,635, profit before tax 16,931, margin 78.3%; Q2 FY26: net revenue 21,529, profit before tax 16,384, margin 76.1%; Q3 FY26: net revenue 21,932, profit before tax 14,800, margin 67.5%; Q4 FY26: net revenue 22,979, profit before tax 18,103, margin 78.8%; Q1 FY27: net revenue 24,384, profit before tax 19,126, margin 78.4%; Q2 FY27: net revenue 25,339, profit before tax 19,725, margin 77.8%. Net revenue Profit before tax Profit before tax margin (% of net revenue) 18,678 13,674 Q3 FY24 19,093 14,321 Q4 FY24 19,553 14,693 Q1 FY25 20,048 15,490 Q2 FY25 20,371 15,660 Q3 FY25 21,193 16,774 Q4 FY25 21,635 16,931 Q1 FY26 21,529 16,384 Q2 FY26 21,932 14,800 Q3 FY26 22,979 18,103 Q4 FY26 24,384 19,126 Q1 FY27 25,339 19,725 Q2 FY27 73.2% 75.0% 75.1% 77.3% 76.9% 79.1% 78.3% 76.1% 67.5% 78.8% 78.4% 77.8%

Rs. crore; margin is profit before tax as a percent of net revenue, per quarter.

Q2 FY2027 (quarter ended September 30, 2026) vs. Q2 FY2026 (quarter ended September 30, 2025) - standalone, Indian GAAP, reported in Rs. crore and USD

FX: US$1 = Rs. 95.83 (period-end market rate, September 30, 2026, a convenience translation stated directly in the filed results).

Metric Q2-2027 (Rs. cr) Q2-2027 (USD) Q2-2026 (Rs. cr) YoY
Net Interest Income ("Net Revenue" equivalent) Rs. 25,339cr ~$2.64B Rs. 21,529cr +17.7%
Non-interest income (excl. treasury) Rs. 8,277cr ~$864M Rs. 7,356cr +12.5%
- of which Fee income Rs. 7,795cr ~$813M Rs. 6,491cr +20.1%
Operating expenses Rs. 12,811cr ~$1.34B Rs. 11,807cr +8.5%
Core operating profit (PPOP», "Operating Income" proxy before tax) Rs. 20,805cr ~$2.17B Rs. 17,078cr +21.8%
- excl. dividend income from subsidiaries Rs. 20,342cr ~$2.12B Rs. 16,268cr +25.0%
Provisions (other than tax) Rs. 851cr ~$89M Rs. 914cr -6.9%
Treasury income/(loss) Rs. (230)cr ~$(24)M Rs. 220cr n.m.
Profit before tax, excl. treasury Rs. 19,954cr ~$2.08B Rs. 16,164cr +23.4%
Profit before tax Rs. 19,725cr ~$2.06B Rs. 16,384cr +20.4%
Net Income (Profit after tax, standalone) Rs. 14,843cr ~$1.55B Rs. 12,359cr +20.1%
Net Income (Profit after tax, consolidated) Rs. 16,333cr ~$1.70B Rs. 13,357cr +22.3%¹
Diluted EPS (not annualised) Rs. 20.45 ~$0.21 Rs. 17.06 +19.9%
Cash & balances with RBI + banks (period-end, standalone) Rs. 244,388cr ~$25.50B Rs. 136,680cr +78.8%

¹ Consolidated net income growth (22.3%) outpaces standalone (20.1%) this quarter - the opposite of the 2026-06 post, where a weak Treasury and General Insurance quarter dragged consolidated below standalone. This quarter Life Insurance (segment PBT +25.5% YoY) and General Insurance (segment PBT +15.8% YoY) both added more than Treasury (segment PBT -2.7% YoY) subtracted; see Segments below.

Core operating profit excluding dividend income is the cleaner year-on-year read this quarter: dividend income from subsidiaries fell 42.9% to Rs. 463 crore (from Rs. 810 crore), because ICICI Prudential AMC shifted its own dividend declaration from a quarterly to a half-yearly basis - a timing change at the subsidiary level, not a profitability signal, and the reason headline core operating profit growth (21.8%) trails the ex-dividend figure (25.0%). See Beyond the Usual below.

Where Q2 FY27's Revenue Went

Net revenue, and how much of it was left as operating profit and net income, in one view. Figures are the same standalone-quarter figures as the metrics table.

ICICIBANK Q2 FY27 revenue-to-profit flow Net revenue is the starting point. From net revenue, cost and deduction flows are shaded red, darkest to lightest by size, and profit before tax splits into tax & other items and net income, shown in green. Figures in Rs. crore and percent of net revenue, Q2 FY27. Net revenue Rs. 25,339 crore · 100% Profit before tax — Rs. 19,725 crore · 78% Operating costs Rs. 5,614 crore · 22% Tax & other items Rs. 4,882 crore · 19% Net income Rs. 14,843 crore · 59%

Rs. crore, Q2 FY27. Operating costs are net revenue less profit before tax; tax & other items are profit before tax less net income.

Key Operational Metrics

Arrow = the way the number moved against a year earlier (or against last quarter where only that is given). Green = good for the bank, red = bad, grey = neither or flat.

Funding and margin

  • Average CASA ratio: 35.8%, down from 39.2% a year earlier and 38.1% last quarter (explained in the opening section above).
  • Net interest margin: 4.18%, down from 4.30% a year earlier and 4.36% last quarter (4.28% last quarter excluding 8 basis points of interest on a tax refund); domestic NIM 4.32% (vs. 4.37% a year earlier), overseas-book NIM 1.07% (vs. 0.98% a year earlier - the overseas book's own margin actually improved, but its growing share of assets, which management cites, pulls the blend down).
  • Cost of deposits: 4.50%, down from 4.64% a year earlier but up from 4.41% last quarter (the prepared remarks give no reason for the sequential rise).
  • Credit/deposit ratio (domestic balance sheet): 84.0%, down from 87.5% last quarter and 86.3% a year earlier - deposits are now outgrowing the domestic loan book, which grew 6.8% in the quarter (the ratio is on the domestic balance sheet).

Advances

  • Total advances: Rs. 1,831,580 crore (US$191.1 billion), +30.0% year-on-year and +12.3% sequentially; ex-FCNR(B)-backed international-branch loans, +24.1% year-on-year and +7.3% sequentially. Business banking +33.8% YoY, domestic corporate +30.6% YoY, retail and rural +14.8% YoY.
  • Overseas (standalone) loan book: Rs. 142,954 crore, 7.8% of total advances, up from 3.1% last quarter - see opening section above.

Asset quality

  • Gross NPA» ratio (customer assets, net of write-off): 1.20%, down from 1.38% last quarter and 1.58% a year earlier.
  • Net NPA ratio: 0.30%, down from 0.35% last quarter and 0.39% a year earlier.
  • Provisioning coverage ratio» on NPAs: 75.0%, up from 74.7% last quarter and flat against 75.0% a year earlier.
  • Co-lending arrangements: 5 partners (up from 4 last quarter), 11,657 outstanding cases, Rs. 1,662.64 crore gross outstanding at a weighted average 8.80% rate; 4.78% of that book is non-performing, essentially flat against 4.8% last quarter.

Capital

  • Capital adequacy ratio (Basel III, standalone): 16.68% total, 16.01% CET1» (both including this quarter's profits) - down for the second straight quarter, from 16.84%/16.19% last quarter and 17.00%/16.35% a year earlier, though still comfortably above the 11.70%/8.20% regulatory minimums; see Beyond the Usual below.
  • Cost-to-income ratio: 38.4%, improved from 40.6% a year earlier, roughly flat against 38.1% last quarter.
  • Standalone return on equity (annualised): 16.6%, up from 16.0% a year earlier but down from 17.1% last quarter.
  • Return on assets (annualised): 2.26%, down from 2.36% a year earlier and 2.49% last quarter.
  • Branch network: 7,656 branches at quarter-end, +48 in the quarter (+145 for H1 FY2027).
  • Contingency provisions: unchanged at Rs. 13,100 crore across four consecutive reported periods now (September 2025, March 2026, June 2026, September 2026).

A seasonality note carried forward from the 2026-06 post: Q2 (July-September) doesn't carry the same kisan-credit-card seasonal NPA bump that Q1 does, and this quarter's gross NPA additions (Rs. 4,833 crore) were in fact slightly below Q2 FY2026's (Rs. 5,034 crore) - a cleaner asset-quality quarter than the margin story above, on its own terms.

Seven Reported Segments, Two of Them Insurers

ICICI Bank's consolidated results report the same seven segments as last quarter: Retail Banking (split into Digital Banking and Other Retail Banking sub-segments), Wholesale Banking, Treasury, Other Banking (leasing operations plus the UK and Canada banking subsidiaries), Life Insurance (ICICI Life, formerly ICICI Prudential Life), General Insurance (ICICI Lombard), and Others.

Retail Banking

ICICIBANK Retail Banking: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK Retail Banking: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q3 FY24: segment revenue 34,001, segment profit before tax 4,288, margin 12.6%; Q4 FY24: segment revenue 36,410, segment profit before tax 5,486, margin 15.1%; Q1 FY25: segment revenue 37,378, segment profit before tax 4,239, margin 11.3%; Q2 FY25: segment revenue 38,751, segment profit before tax 5,556, margin 14.3%; Q3 FY25: segment revenue 39,438, segment profit before tax 5,332, margin 13.5%; Q4 FY25: segment revenue 40,618, segment profit before tax 6,493, margin 16.0%; Q1 FY26: segment revenue 40,458, segment profit before tax 4,735, margin 11.7%; Q2 FY26: segment revenue 40,759, segment profit before tax 6,319, margin 15.5%; Q3 FY26: segment revenue 40,569, segment profit before tax 5,263, margin 13.0%; Q4 FY26: segment revenue 40,609, segment profit before tax 6,927, margin 17.1%; Q1 FY27: segment revenue 42,166, segment profit before tax 6,239, margin 14.8%; Q2 FY27: segment revenue 43,724, segment profit before tax 7,716, margin 17.6%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 34,001 4,288 Q3 FY24 36,410 5,486 Q4 FY24 37,378 4,239 Q1 FY25 38,751 5,556 Q2 FY25 39,438 5,332 Q3 FY25 40,618 6,493 Q4 FY25 40,458 4,735 Q1 FY26 40,759 6,319 Q2 FY26 40,569 5,263 Q3 FY26 40,609 6,927 Q4 FY26 42,166 6,239 Q1 FY27 43,724 7,716 Q2 FY27 12.6% 15.1% 11.3% 14.3% 13.5% 16.0% 11.7% 15.5% 13.0% 17.1% 14.8% 17.6%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results).

Segment revenue grew 7.3% year-on-year to Rs. 43,724 crore and segment profit before tax grew 22.1% to Rs. 7,716 crore - a meaningfully better profit-to-revenue conversion than a year earlier (17.7% PBT margin versus 15.5%). Digital Banking, now two quarters into its own disclosure, grew revenue 8.5% year-on-year to Rs. 12,002 crore (27.5% of Retail Banking's segment revenue) and profit 37.3% to Rs. 2,316 crore (30.0% of Retail Banking's segment profit) - both growing faster than Other Retail Banking (+6.8% revenue, +16.6% profit).

Wholesale Banking

ICICIBANK Wholesale Banking: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK Wholesale Banking: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q3 FY24: segment revenue 19,455, segment profit before tax 5,746, margin 29.5%; Q4 FY24: segment revenue 18,873, segment profit before tax 5,476, margin 29.0%; Q1 FY25: segment revenue 19,392, segment profit before tax 4,912, margin 25.3%; Q2 FY25: segment revenue 20,389, segment profit before tax 5,198, margin 25.5%; Q3 FY25: segment revenue 21,119, segment profit before tax 5,903, margin 28.0%; Q4 FY25: segment revenue 21,536, segment profit before tax 5,552, margin 25.8%; Q1 FY26: segment revenue 21,451, segment profit before tax 5,388, margin 25.1%; Q2 FY26: segment revenue 21,112, segment profit before tax 5,759, margin 27.3%; Q3 FY26: segment revenue 22,170, segment profit before tax 6,305, margin 28.4%; Q4 FY26: segment revenue 23,115, segment profit before tax 7,037, margin 30.4%; Q1 FY27: segment revenue 25,327, segment profit before tax 7,479, margin 29.5%; Q2 FY27: segment revenue 27,035, segment profit before tax 7,911, margin 29.3%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 19,455 5,746 Q3 FY24 18,873 5,476 Q4 FY24 19,392 4,912 Q1 FY25 20,389 5,198 Q2 FY25 21,119 5,903 Q3 FY25 21,536 5,552 Q4 FY25 21,451 5,388 Q1 FY26 21,112 5,759 Q2 FY26 22,170 6,305 Q3 FY26 23,115 7,037 Q4 FY26 25,327 7,479 Q1 FY27 27,035 7,911 Q2 FY27 29.5% 29.0% 25.3% 25.5% 28.0% 25.8% 25.1% 27.3% 28.4% 30.4% 29.5% 29.3%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results).

Segment revenue grew 28.1% to Rs. 27,035 crore and PBT grew 37.4% to Rs. 7,911 crore - again the fastest-growing of Retail, Wholesale and Treasury (Other Banking grew revenue faster, off a small base) and the highest-margin of the four core segments at a 29.3% PBT margin (Retail Banking converts at 17.7%). Corporate lending remains where a rupee of segment revenue turns into profit most efficiently.

Treasury

ICICIBANK Treasury: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK Treasury: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q3 FY24: segment revenue 29,356, segment profit before tax 3,210, margin 10.9%; Q4 FY24: segment revenue 30,321, segment profit before tax 3,242, margin 10.7%; Q1 FY25: segment revenue 32,652, segment profit before tax 5,478, margin 16.8%; Q2 FY25: segment revenue 33,564, segment profit before tax 4,588, margin 13.7%; Q3 FY25: segment revenue 34,052, segment profit before tax 4,222, margin 12.4%; Q4 FY25: segment revenue 34,775, segment profit before tax 4,463, margin 12.8%; Q1 FY26: segment revenue 36,973, segment profit before tax 6,309, margin 17.1%; Q2 FY26: segment revenue 33,888, segment profit before tax 4,116, margin 12.1%; Q3 FY26: segment revenue 33,230, segment profit before tax 3,085, margin 9.3%; Q4 FY26: segment revenue 34,339, segment profit before tax 3,740, margin 10.9%; Q1 FY27: segment revenue 37,212, segment profit before tax 4,822, margin 13.0%; Q2 FY27: segment revenue 39,522, segment profit before tax 4,005, margin 10.1%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 29,356 3,210 Q3 FY24 30,321 3,242 Q4 FY24 32,652 5,478 Q1 FY25 33,564 4,588 Q2 FY25 34,052 4,222 Q3 FY25 34,775 4,463 Q4 FY25 36,973 6,309 Q1 FY26 33,888 4,116 Q2 FY26 33,230 3,085 Q3 FY26 34,339 3,740 Q4 FY26 37,212 4,822 Q1 FY27 39,522 4,005 Q2 FY27 10.9% 10.7% 16.8% 13.7% 12.4% 12.8% 17.1% 12.1% 9.3% 10.9% 13.0% 10.1%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results).

Segment revenue grew 16.6% to Rs. 39,522 crore but PBT fell 2.7% to Rs. 4,005 crore - the one core segment moving backward this quarter, as in the 2026-06 post (PBT -23.6%); the 2022-09 post showed Treasury still growing (PBT +15.6%) but the slowest of the four core segments, with a Rs. 85 crore treasury-income loss. The standalone-level treasury income line (trading/mark-to-market gains, distinct from the much larger segment revenue figure above, which includes the entire investment book's interest income) swung from a Rs. 220 crore gain a year earlier to a Rs. 230 crore loss this quarter - the direct reason headline profit before tax (+20.4%) grew slower than profit before tax excluding treasury (+23.4%).

Other Banking

ICICIBANK Other Banking: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK Other Banking: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q3 FY24: segment revenue 1,748, segment profit before tax 522, margin 29.9%; Q4 FY24: segment revenue 1,591, segment profit before tax 361, margin 22.7%; Q1 FY25: segment revenue 1,497, segment profit before tax 314, margin 21.0%; Q2 FY25: segment revenue 2,076, segment profit before tax 307, margin 14.8%; Q3 FY25: segment revenue 2,172, segment profit before tax 422, margin 19.4%; Q4 FY25: segment revenue 1,764, segment profit before tax 409, margin 23.2%; Q1 FY26: segment revenue 2,113, segment profit before tax 679, margin 32.1%; Q2 FY26: segment revenue 1,649, segment profit before tax 286, margin 17.3%; Q3 FY26: segment revenue 1,686, segment profit before tax 236, margin 14.0%; Q4 FY26: segment revenue 2,069, segment profit before tax 502, margin 24.3%; Q1 FY27: segment revenue 2,432, segment profit before tax 719, margin 29.6%; Q2 FY27: segment revenue 4,416, segment profit before tax 210, margin 4.7%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 1,748 522 Q3 FY24 1,591 361 Q4 FY24 1,497 314 Q1 FY25 2,076 307 Q2 FY25 2,172 422 Q3 FY25 1,764 409 Q4 FY25 2,113 679 Q1 FY26 1,649 286 Q2 FY26 1,686 236 Q3 FY26 2,069 502 Q4 FY26 2,432 719 Q1 FY27 4,416 210 Q2 FY27 29.9% 22.7% 21.0% 14.8% 19.4% 23.2% 32.1% 17.3% 14.0% 24.3% 29.6% 4.7%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results).

Consolidated segment revenue grew 167.8% to Rs. 4,416 crore, but segment PBT fell 26.7% to Rs. 210 crore - revenue up sharply, profit down sharply, in a segment that bundles standalone leasing operations with the UK and Canada banking subsidiaries. The divergence is driven almost entirely by the standalone piece: standalone "Other Banking" segment revenue alone nearly quadrupled year-on-year (Rs. 958 crore to Rs. 3,571 crore) while its segment PBT halved (Rs. 165 crore to Rs. 82 crore) - a swing the filed results don't explain (see Beyond the Usual below). The UK and Canada subsidiaries themselves moved in opposite but modest directions: ICICI Bank UK's operating profit rose to US$8.9 million from US$6.7 million, while ICICI Bank Canada's fell to CAD 7.7 million from CAD 8.6 million.

Life Insurance and General Insurance

ICICIBANK General Insurance: segment revenue, segment profit before tax and its margin, last 10 quarters (Rs. crore) ICICIBANK General Insurance: segment revenue, segment profit before tax and its margin, last 10 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q1 FY25: segment revenue 6,176, segment profit before tax 774, margin 12.5%; Q2 FY25: segment revenue 6,547, segment profit before tax 919, margin 14.0%; Q3 FY25: segment revenue 6,462, segment profit before tax 960, margin 14.9%; Q4 FY25: segment revenue 6,466, segment profit before tax 668, margin 10.3%; Q1 FY26: segment revenue 6,898, segment profit before tax 994, margin 14.4%; Q2 FY26: segment revenue 7,283, segment profit before tax 1,077, margin 14.8%; Q3 FY26: segment revenue 7,366, segment profit before tax 870, margin 11.8%; Q4 FY26: segment revenue 7,344, segment profit before tax 718, margin 9.8%; Q1 FY27: segment revenue 7,542, segment profit before tax 536, margin 7.1%; Q2 FY27: segment revenue 8,598, segment profit before tax 1,247, margin 14.5%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 6,176 774 Q1 FY25 6,547 919 Q2 FY25 6,462 960 Q3 FY25 6,466 668 Q4 FY25 6,898 994 Q1 FY26 7,283 1,077 Q2 FY26 7,366 870 Q3 FY26 7,344 718 Q4 FY26 7,542 536 Q1 FY27 8,598 1,247 Q2 FY27 12.5% 14.0% 14.9% 10.3% 14.4% 14.8% 11.8% 9.8% 7.1% 14.5%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results). Starts at Q1 FY25: earlier periods are not comparable.

ICICIBANK Life Insurance: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK Life Insurance: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q3 FY24: segment revenue 13,150, segment profit before tax 232, margin 1.8%; Q4 FY24: segment revenue 17,735, segment profit before tax 234, margin 1.3%; Q1 FY25: segment revenue 11,336, segment profit before tax 260, margin 2.3%; Q2 FY25: segment revenue 13,888, segment profit before tax 286, margin 2.1%; Q3 FY25: segment revenue 15,551, segment profit before tax 376, margin 2.4%; Q4 FY25: segment revenue 19,449, segment profit before tax 414, margin 2.1%; Q1 FY26: segment revenue 12,071, segment profit before tax 345, margin 2.9%; Q2 FY26: segment revenue 15,430, segment profit before tax 347, margin 2.2%; Q3 FY26: segment revenue 15,459, segment profit before tax 447, margin 2.9%; Q4 FY26: segment revenue 22,512, segment profit before tax 669, margin 3.0%; Q1 FY27: segment revenue 13,633, segment profit before tax 431, margin 3.2%; Q2 FY27: segment revenue 17,504, segment profit before tax 436, margin 2.5%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 13,150 232 Q3 FY24 17,735 234 Q4 FY24 11,336 260 Q1 FY25 13,888 286 Q2 FY25 15,551 376 Q3 FY25 19,449 414 Q4 FY25 12,071 345 Q1 FY26 15,430 347 Q2 FY26 15,459 447 Q3 FY26 22,512 669 Q4 FY26 13,633 431 Q1 FY27 17,504 436 Q2 FY27 1.8% 1.3% 2.3% 2.1% 2.4% 2.1% 2.9% 2.2% 2.9% 3.0% 3.2% 2.5%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results).

Life Insurance segment revenue grew 13.5% to Rs. 17,504 crore and PBT grew 25.5% to Rs. 436 crore. General Insurance segment revenue grew 18.0% to Rs. 8,598 crore and PBT grew 15.8% to Rs. 1,247 crore - a clean recovery from the 2026-06 post's sharp General Insurance PBT decline, though its combined ratio still deteriorated to 107.0% from 105.1% a year earlier (105.3% versus 103.8% excluding catastrophe losses) - see Beyond the Usual below for a footnote-level driver behind that line that predates this quarter's catastrophe losses.

Others

ICICIBANK Others: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore) ICICIBANK Others: segment revenue, segment profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment profit before tax margin as a percent of segment revenue. Q3 FY24: segment revenue 3,608, segment profit before tax 1,675, margin 46.4%; Q4 FY24: segment revenue 4,012, segment profit before tax 1,623, margin 40.4%; Q1 FY25: segment revenue 4,436, segment profit before tax 1,683, margin 37.9%; Q2 FY25: segment revenue 5,184, segment profit before tax 2,164, margin 41.7%; Q3 FY25: segment revenue 4,560, segment profit before tax 1,792, margin 39.3%; Q4 FY25: segment revenue 4,652, segment profit before tax 1,784, margin 38.4%; Q1 FY26: segment revenue 5,274, segment profit before tax 2,381, margin 45.2%; Q2 FY26: segment revenue 4,833, segment profit before tax 1,961, margin 40.6%; Q3 FY26: segment revenue 5,120, segment profit before tax 2,185, margin 42.7%; Q4 FY26: segment revenue 4,743, segment profit before tax 1,851, margin 39.0%; Q1 FY27: segment revenue 5,174, segment profit before tax 2,191, margin 42.3%; Q2 FY27: segment revenue 5,160, segment profit before tax 2,042, margin 39.6%. Segment revenue Segment profit before tax Segment profit before tax margin (% of segment revenue) 3,608 1,675 Q3 FY24 4,012 1,623 Q4 FY24 4,436 1,683 Q1 FY25 5,184 2,164 Q2 FY25 4,560 1,792 Q3 FY25 4,652 1,784 Q4 FY25 5,274 2,381 Q1 FY26 4,833 1,961 Q2 FY26 5,120 2,185 Q3 FY26 4,743 1,851 Q4 FY26 5,174 2,191 Q1 FY27 5,160 2,042 Q2 FY27 46.4% 40.4% 37.9% 41.7% 39.3% 38.4% 45.2% 40.6% 42.7% 39.0% 42.3% 39.6%

Rs. crore; margin is segment profit before tax as a percent of segment revenue, per quarter. Revenue is the segment revenue (consolidated segmental results, incl. inter-segment); profit is the segment profit before tax (consolidated segmental results).

Revenue grew 6.8% to Rs. 5,160 crore and PBT grew 4.1% to Rs. 2,042 crore - modest growth, in line with recent quarters.

Which Segments Are Actually Carrying the Business

Retail and Wholesale Banking are again doing the heavy lifting - both grew segment profit before tax faster than 20%, with Wholesale remaining the highest-margin core segment. Treasury is again the drag: its profit before tax fell this quarter and in the 2026-06 post, and in the 2022-09 post's quarter it grew but was the slowest of the four core segments. Total consolidated segment results (before the inter-segment adjustment and associates' profit share that bridge to the filed "profit before tax and minority interest" line) grew 18.6% year-on-year to Rs. 23,567 crore, slightly behind the standalone bank's own 20.4-23.4% growth range - the subsidiary and treasury lines are diluting, not amplifying, the core franchise's growth, the same direction as the 2022-09 post (subsidiary segments "a drag on the consolidated growth rate") and the 2026-06 post (consolidated segment profit +9.3% against the standalone bank's 13.0-20.9%), though the gap has narrowed now that Life and General Insurance are both contributing rather than dragging.

Beyond the Usual

An RBI-directed agricultural provision is open for a fourth straight quarter, with no written record of whether it came up this time

The Rs. 1,283 crore additional standard-asset provision the RBI directed ICICI Bank to hold against a non-compliant agricultural priority-sector portfolio - first made in Q3 FY2026 (the quarter ended December 31, 2025) - remains on the balance sheet, unreversed, as of September 30, 2026. The bank's own filed results repeat the same language as last quarter: it "continues to hold the additional standard asset provision till completion of the review process," with no new timeline given in the filing itself. On the 2026-06 post's call, an analyst asked management directly and got a non-committal answer. Only management's prepared opening remarks for this quarter's call have been published in writing so far - the question-and-answer session has not yet been transcribed, three days after the October 17, 2026 call - so whether an analyst raised it again this time, and what management said, isn't something this post can verify yet. A provision now open for a fourth straight quarter - nine months since it was first made - with no committed resolution date is still worth tracking into the next filing.

A catch-all standalone segment's revenue nearly quadrupled while its profit halved, with no disclosed driver

The standalone "Other Banking" segment - the bank's own description: leasing operations and items not attributable to any other business segment - reported segment revenue of Rs. 3,571 crore this quarter, up from Rs. 958 crore a year earlier (and Rs. 1,633 crore last quarter), while its segment profit before tax fell to Rs. 82 crore from Rs. 165 crore a year earlier. A nearly fourfold revenue increase alongside a halved profit in the same catch-all line, with no footnote or management commentary explaining either move, is worth watching: it's a small segment in absolute terms (about 3.1% of total standalone segment revenue this quarter), but a swing this large in an unexplained bucket is exactly the kind of line a reader should be able to ask about and currently can't, from what's filed.

The capital-adequacy ratio has now fallen for two straight quarters

Standalone total capital adequacy fell to 16.68% this quarter from 16.84% last quarter and 17.00% a year earlier; CET1 fell to 16.01% from 16.19% and 16.35% over the same two comparisons. Risk-weighted assets grew 4.6% sequentially (to Rs. 2,037,568 crore) - faster than capital itself grew - which this post reads as partly a function of this quarter's 12.0% sequential growth in total assets (Rs. 2,432,426 crore to Rs. 2,725,287 crore; press release balance sheet) and the Rs. 1,470 crore additional stake purchase in ICICI Life Insurance (below), which consumes capital without adding risk-weighted revenue-generating assets in the same quarter. Both ratios remain comfortably above the regulatory minimums of 11.70% and 8.20%, but a two-quarter declining trend in a bank that is also growing its balance sheet this quickly is worth watching rather than assuming is a one-quarter blip.

A Supreme Court ruling on unpaid domestic work is adding to ICICI Lombard's motor-insurance reserves

ICICI Lombard General Insurance - the subsidiary behind the General Insurance segment above - disclosed in its own standalone quarterly filing that, following a June 11, 2026 Supreme Court of India judgment recognising the economic value of unpaid domestic work performed by homemakers for the purpose of determining compensation under the Motor Vehicles Act, it has "on a prudent and conservative basis" recognised claim reserves of Rs. 169.40 crore¹ against its Motor Third-Party portfolio for the period, of which Rs. 165.00 crore was already recognised in the prior quarter ended June 30, 2026. The statutory auditors relied on the company's appointed actuary's estimates for this item. It's a disclosed, auditor-reviewed reserve, not a governance or accounting problem - but the cumulative figure isn't small relative to the segment, and it's a genuinely new, judicially-driven cost input into motor-insurance underwriting that a reader following the General Insurance segment's combined ratio should know about: the presentation's own footnote attributing this quarter's elevated combined ratio to "increase in claim reserves pursuant to recent judicial pronouncements" is referring in large part to this item. This quarter's own incremental addition to the reserve, though, is modest - most of it was already booked last quarter.

¹ The cumulative Rs. 169.40 crore reserve is about 9.5% of General Insurance's H1 FY2027 segment profit before tax (Rs. 1,783.12 crore) - material at the half-year level, which is part of why the presentation's own footnote cites this item for this quarter's elevated combined ratio. This quarter's own incremental booking, Rs. 4.40 crore (Rs. 169.40 crore less the Rs. 165.00 crore already recognised last quarter), is small against this quarter's own Rs. 1,247.41 crore General Insurance segment PBT - about 0.35%.

A dividend-timing change at a subsidiary, not a profitability shift, explains most of the gap between two "core profit" growth rates

ICICI Prudential Asset Management Company shifted its own dividend declaration from a quarterly to a half-yearly cadence this year, which cut the dividend income ICICI Bank booked from subsidiaries to Rs. 463 crore this quarter from Rs. 810 crore a year earlier - a 42.9% fall with nothing to do with how any subsidiary actually performed. That single timing change is almost the entire reason core operating profit excluding dividend income grew faster (25.0% year-on-year) than headline core operating profit (21.8%); a reader who only tracks the headline figure would read in more deceleration than is actually there.

A new category of NPA buyer shows up in this quarter's disclosure

The bank's half-year disclosure of stressed-loan sales now includes a second buyer category beyond asset reconstruction companies (ARCs): "permitted transferees," not present in the 2026-06 post's reading of the prior quarter's equivalent disclosure. For the six months ended September 30, 2026, the bank sold 127 non-performing accounts (aggregate principal Rs. 346.02 crore) to ARCs for Rs. 284.70 crore, and separately sold 2 accounts (Rs. 26.67 crore principal) to permitted transferees for Rs. 25.00 crore - releasing a combined Rs. 267.53 crore of excess provisions back to the profit and loss account. (The 2026-06 post recorded the first-quarter slice of this same half-year window - 47 accounts, Rs. 239 crore, to ARCs only - implying roughly 80 additional accounts and Rs. 107 crore sold to ARCs in this quarter alone, plus the entirely new permitted-transferees category.) Routine, but a small expansion of who the bank's NPA book is being sold to.

Management's Opening Remarks: A Candid Account of Its Own Margin Pressure

Only ICICI Bank's prepared opening remarks for the October 17, 2026 call have been published in writing so far - no full question-and-answer transcript is available yet, three days after the call - so this section covers what management's own scripted framing emphasized, not what analysts followed up on.

Unlike the 2026-06 post, where the CASA ratio's decline went unmentioned in the prepared remarks and had to be read off a supporting slide, this quarter management (Anindya Banerjee) volunteered the margin story directly and in detail, unprompted: walking through the same quarter-on-quarter and year-on-year NIM figures, naming the same overseas-book and term-deposit mix shift as the causes (see the opening section above), and forecasting a recovery once the full effect has played out in the third quarter. Sandeep Bakhshi's own opening remarks were equally direct about the mechanism driving this quarter's growth, naming the RBI's swap facility and the roughly $18 billion of FCNR(B) deposits mobilized under it in the same paragraph as the deposit-growth figures.

What the opening remarks describe as a margin effect whose "full impact would reflect in the third quarter", after which management expects "the margins to start moving back up", sits beside the largest single piece of this quarter's loan growth: the overseas book added Rs. 92,679 crore of the Rs. 200,320 crore rise in total advances, 46.3% (business banking added Rs. 39,013 crore, domestic corporate Rs. 33,455 crore and retail and rural Rs. 29,175 crore; presentation loan table). The bank's own ex-FCNR(B) loan figures imply that at least two-fifths of that rise was FCNR(B)-backed: total advances grew 12.3% in the quarter but 7.3% excluding loans against FCNR(B), so those loans are at least Rs. 1,831,580 crore less 1.073 x Rs. 1,631,260 crore, which is Rs. 81,238 crore, or 40.6% of the Rs. 200,320 crore rise (a floor, give or take the rounding of the reported rates, which moves it by under half a point). On the year-on-year rates (30.0% against 24.1%) the figure is Rs. 83,686 crore (Rs. 1,831,580 crore less 1.241 x Rs. 1,408,456 crore), or 41.8% of the quarter's rise, if almost no such loans existed at the start of the quarter. Management's candour about the mechanism doesn't change that, or that the promised "margins to start moving back up" is a forecast, not yet a result. Anindya Banerjee also disclosed, almost in passing, that "adjusting for one-off corporate recoveries, standard asset provision on loans provided against FCNR (B) deposits and seasonality of KCC provisioning, the normalized credit cost to advances would be about 50 basis points" - a reminder that even the credit-cost line this quarter carries FCNR(B)-related adjustments, not just the growth and margin lines.

Target Valuation Range

Fairly valued, drifting toward cheap, at a ~2.63x price-to-book» - down from 2.79x three months ago even though trailing profitability barely moved, and only a double-digit perpetual-growth assumption (not a conservative mid-single-digit one) fully justifies today's price under a standard sustainable-P/B lens.

In plain words. P/B (price-to-book) is the share price divided by the bank's net worth per share: at ~2.63x, investors pay Rs. 2.63 for every Rs. 1 of the bank's own money. ROE (return on equity) is the yearly profit as a percentage of that net worth: ICICI earns 16.6%. The cost of equity is the return shareholders are assumed to demand for the risk (13% to 14% below). Put together: the market is paying a high price for a 16.6% return, which only makes sense if the bank keeps growing fast for a very long time.

How ICICI compares with the other banks we follow

Bank Figures as of P/B P/E (basis) ROE (basis)
ICICI Bank (India) Sep 2026 ~2.63x ~16.0x (annualised quarter) 16.6% (annualised quarter)
Bank Central Asia (Indonesia) Jun 2026 ~2.5x ~11.7x (trailing four quarters) 24.1% (first half, per its half-year presentation)
Bank Rakyat Indonesia (Indonesia) Jun 2026 ~1.29x ~6.76x (trailing four quarters) 18.50% (first half)
Bank Mandiri (Indonesia) Jun 2026 ~1.26x ~5.77x (trailing four quarters) 24.28% (as filed; the post gives no period)
Nu Holdings (digital bank, Latin America) Jun 2026 ~4.9x ~17.9x (trailing four quarters) 33% (quarter)

Each row is that bank's own latest post, so the dates differ. The P/E and ROE bases are labelled and differ (ICICI's P/E uses its annualised quarterly EPS, the others trailing four quarters), so small gaps between rows should not be read as meaningful.

What it shows: ICICI is priced like BCA on price-to-book (about 2.5x), though at a higher P/E (16.0x against 11.7x), while earning a much lower return on equity (16.6% against 24.1%). On price-to-book it is about twice BRI (1.29x) and Mandiri (1.26x), and on P/E about 2.4 and 2.8 times, for a return that is lower than Mandiri's 24.28% and a little below BRI's 18.50% (first half). Only Nu, earning 33%, is priced above it. A premium like this would have to rest on growth or on lower perceived risk, and growth is the one thing this table does not adjust for: the posts report it on different bases, and an Indian bank, three Indonesian banks and a Latin American digital bank carry different country risks.

ICICI Bank's shares closed at Rs. 1,321.70 on the National Stock Exchange on September 30, 2026 - down 9.1% from Rs. 1,454.00 at the end of August and roughly flat (+3.8%) against the Rs. 1,273.00 close two years earlier, in September 2024. The bank's last stock split (1:5, effective December 2014) and last bonus issue (1:10, in 2017) both predate this window by close to a decade, so neither figure needs retroactive adjustment.

Market cap → book value (per-share basis) Q2-2027
Share price (period-end) Rs. 1,321.70
Shares outstanding (face value Rs. 2) ~717.98 crore
Market capitalization ~Rs. 948,954 crore (~$99.02B)
Book value per share (standalone, disclosed) Rs. 502.3
P/B ~2.63x
Weighted-average annualised EPS Rs. 82.7
Trailing-annualised P/E» ~16.0x
Standalone ROE (annualised, this quarter) 16.6%

A full multi-year DCF still isn't attempted here, for the same reason as the 2026-06 post: the comparably-stated quarterly history available for ICICI Bank doesn't yet span a long enough run to anchor one credibly. Instead, the sustainable-P/B check below is run as an honest reverse-engineering exercise - solving for the perpetual growth rate the market's actual multiple implies, rather than asserting a pre-fitted "justified range":

Sustainable-P/B check (Gordon-growth form: P/B = (ROE - g) / (Ke - g)) Value
Standalone ROE (annualised) 16.6%
Cost of equity assumed (two scenarios) 13% / 14%
Perpetual growth (g) a conservative, mid-single-digit assumption would use 5%
Justified P/B at that conservative g ~1.29x-1.45x
Actual P/B ~2.63x
Perpetual growth (g) the actual P/B implies, solved backward at each Ke ~10.8% (Ke=13%) to ~12.4% (Ke=14%)

The gap is real and worth sitting with rather than papering over: a conservative, mid-single-digit terminal-growth assumption justifies a P/B closer to 1.3x-1.5x, well below where the stock actually trades. Closing that gap requires assuming the market is pricing something closer to 11-12% perpetual earnings growth forever - an aggressive assumption for any company held to infinity, though not an absurd one for a bank whose own ex-FCNR(B) loan growth this quarter was still 24.1% (press_release.txt line 93). The honest read is that today's multiple only holds up if the market believes ICICI Bank's growth runway is unusually long, not merely that the bank is executing well.

Scenario Key assumption Implied P/B Implied price
Bear Margin stays compressed near 4.1-4.2% as the FCNR(B)/overseas mix keeps growing faster than it reprices; standalone ROE drifts toward ~15%; the multiple re-rates below the ~2.56x P/B the stock touched at its March 2026 trough (Rs. 1,205.90 against FY2026's Rs. 471.2 standalone book value), reflecting margin pressure proving more persistent than that prior trough assumed ~2.4x ~Rs. 1,206
Base NIM partially recovers per management's own Q3 guidance above; ROE holds near 16.5-17%; the multiple holds near today's level ~2.6x ~Rs. 1,306
Bull Ex-FCNR(B) loan growth (still 24.1% YoY) keeps compounding and the FCNR(B) funding proves a genuine low-cost lever rather than a drag; ROE rebuilds past 17%; the multiple re-rates toward the 2022-09 post's 3.29x ~3.3x ~Rs. 1,658
Current (period-end close) - ~2.63x Rs. 1,321.70

The one-month, -9.1% drop from Rs. 1,454.00 (end of August) to Rs. 1,321.70 (quarter-end) happened before this quarter's results were even filed, so it isn't a reaction to the FCNR(B)/margin story above. The filing, when it came, showed a net interest margin of 4.18% against 4.36% the previous quarter and an overseas loan portfolio at 7.8% of the loan book (press_release.txt lines 65 and 109); the price fall came first and is not explained by either.

ICICI Bank Limited's standalone and consolidated financial results for the quarter ended September 30, 2026 (Q2-2027), approved by the Board of Directors on October 17, 2026 and reviewed by joint statutory auditors B S R & Co. LLP and C N K & Associates LLP; its Q2-2027 investor presentation dated October 17, 2026; its October 17, 2026 "Performance Review" press release; the prepared opening remarks from its October 17, 2026 earnings call; and ICICI Lombard General Insurance Company Limited's own standalone quarterly financial results for the half year ended September 30, 2026, approved by its Board of Directors on October 14, 2026.