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– Our cost of funds has been the only thing which inhibited our NIMs to go below 4%

– We have more room to bring down costs

– Historically when rates come down, CASA ratio goes up typically

– CASA ratio has declined and we expect it to pick up with a lag

– Normally, June and December we see agricultural slippages elevate & it is no different this time

– Slippages excluding agriculture book was 114 bps

– We have taken the opportunity to enhance provisions, it is not meant for any anticipated risk, but to make balance sheet resilient

– Floating provisions now at 80 bps with this additional provisions

I think the numbers are better than what most of us had anticipated. I would go to the extent of saying ICICI Bank numbers are very impressive on certain counts. The fact that the bank managed to grow far higher than the system credit growth of 9.5%. it is commendable. HDFC Bank numbers, except for a bit of the quality issue, which one could quibble about, I think overall, they have also turned out a very good and healthy set of numbers in this challenging environment. So, ICICI Bank, of course, seem to be sector leadership driven missing numbers, and they continue to have a very big advantage given the fact that the other three banks would probably take a bit of a pause and take some time to get the house in order. ICICI probably is going to set the bar higher going forward as well.

– PPOP adjusted for one time gain of ₹9,128.4 crore recorded for sale of HDB Financials under Other Income

– Provisions adjusted for ₹9,000 crore Floating provision and ₹1,700 crore contingency provision created during the quarter

– Total provisions made so far – ₹36,600 crore

– As a result, there was tax write back of ₹1,144.46 crore this quarter

– Fresh slippages have seen marginal increase which is in line with what we were expecting

– Corporates will take a judicious view of where they will raise funds, but it has to meet our quality parameters as well

– Mortgage book is a long term book & we will remain focused on it

– Wherever we see cash flow happening, we will maximise our opportunities

– There is a bit of competitive pricing pressure on the corporate portfolio side

– Movement in NII was primarily due to repricing of loans due to RBI rate cuts, reduction in deposit rates etc.

– We expect NIMs to compress a little more in the next quarter; after that it will depend on RBI actions & overall liquidity.

– From our perspective, we will continue to focus on maximising our risk-calibrated profits.

– Have been focusing on overall growth for the bank

– There has been a marginal increase in our unsecured loan book over last 12 months on a small base

– Asset quality trends in unsecured book has stabilised and expect them to decrease going forward

– Based on current trends, we are overall quite comfortable with quality of unsecured portfolio

Floating provision is the amount of money that the bank sets aside above the minimum regulatory requirement to cover from potential losses from a bad loan situation. This allows lenders to use the same without significantly impacting their capital position if the need arises.

Gross NPA addition of ₹6,245 crore in Q1, compared to an addition of ₹5,142 crore during the March quarter.

Retail loan portfolio for the quarter grew by 6.9% from the same quarter last year and 0.5% on a sequential basis. Retail loans comprised of 52.2% of ICICI Bank’s portfolio. Including non-fund outstanding, the retail portfolio was 43.2% of the overall loan book.

Domestic corporate portfolio grew by 7.5% from last year but fell 7.5% sequentially.

The Bank’s credit performance across all segments continues to remain steady, in a credit environment that remains benign. The Bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, nor meant for any specific anticipated risks, but act as a countercyclical buffer for making the balance sheet more resilient. Accordingly, the bank has made a floating provision of ₹9,000 crore and additional contingent provision of ₹1,700 crore during the quarter.

Total deposits for the quarter grew by 11.2% on a year-on-year basis to ₹15.33 lakh crore, the lender said in its investor presentation.

Domestic loan portfolio grew by 12% from last year to ₹13.31 lakh crore.

Provision Coverage Ratio for NPAs stood at 75.3% at the end of the quarter.

HDFC Bank’s provisions saw a sharp jump to ₹14,441 crore from ₹3,193 crore in the March quarter.

The lender highlighted that it had created a floating provision of ₹9,000 crore during the quarter.

Adjusted for that, provisions would have increased to ₹5,441 crore from ₹3,193 crore.

Asset quality remained stable with gross NPA remaining unchanged from the March quarter at 1.67% and Net NPA at 0.41% from 0.39% in the March quarter.

Provisions for the quarter also saw an increase to ₹1,814 crore from ₹890 crore during the March quarter.

Net Interest Income, or core income earned by the lender stood at ₹21,635 crore, which was 10.6% higher than the same quarter last year, and higher than the CNBC-TV18 poll of ₹20,923 crore.

ICICI Bank reported net profit of ₹12,768 crore during the quarter, which was 15.4% higher than the year-ago quarter and also higher than the CNBC-TV18 pol of ₹11,747 crore.

HDFC Bank’s board has approved a bonus issue of 1:1, which means shareholders will be eligible to receive one bonus share for every one held.

Record date is yet to be determined.

The board has also approved a special dividend of ₹5 per share.

– Net Interest Income up 5.4% from last year to ₹31,438 crore

– Net profit up 12.2% to ₹18,155 crore

– Higher other income contributes to profit jump

– Other income at over ₹20,000 crore from over ₹10,000 crore last year

– Gross NPA at 1.4% from 1.33% last quarter

– Net NPA at 0.47% from 0.43% last quarter

– Commentary on Margins

– Improvement in loan growth trajectory

– Comments on asset quality

HDFC Bank is set to reward its shareholders along with its June quarter results.

The board will be considering a bonus issue of shares for its shareholders. Alongside that, it will also be considering a special dividend.

This comes after HDFC Bank received ₹10,000 crore as part of its partial stake sale in its non-bank lending arm HDB Financial Services, during the latter’s IPO.

52 analysts have coverage on ICICI Bank.

49 of them have a “buy” recommendation

Three others have a “hold” rating.

No analyst has a “sell” rating on the stock either.

48 analysts have coverage on HDFC Bank.

44 of them have a “buy” recommendation.

The four others, have a “hold” rating.

– HDFC Bank’s Net Interest Income had grown by 10.3% from last year to ₹32,065 crore

– Net profit for the quarter had increased by 6.7% year-on-year to 17,616 crore

– Provisions were down year-on-year but saw a marginal rise sequentially

– ICICI Bank’s deposits had grown by 14% from last year to ₹16.1 lakh crore

– Loan growth during the quarter had increased by 13.3% year-on-year to ₹13.4 lakh crore

– Asset quality had improved on a sequential basis

– Mgt expects favourable policy action (esp lower rates) to aid consumption activity & credit demand in 2HFY26.

– NIMs will have near-term correction & rise in FY27; asset quality is holding up well

– See recent allegations on bank/CEO as a non-event, albeit noisy.

– Remains top pick in the sector

– Maintain buy rating; price target of ₹2,380

– Prefer large private banks, selective risk-reward for NBFCs.

– Top picks: HDFC Bank, Axis Bank, AB CAP, PFC, Shriram Finance, LIC

– Asset quality should remain strong except for seasonal agriculture slippages

– Corporate recoveries may remain weak this quarter – impacting Credit cost

– Slippages/credit cost may increase ~20 bps QoQ to 1.9%

– Commentary on Margins

– Improvement in loan growth trajectory

– Comments on asset quality

– Loan book growth outlook

– Management had earlier said that growth will be in-line with the system in FY26 and ahead of the system in FY27

– Commentary on NIMs

– Aims for Credit-Deposit Ratio to gradually go down to 85% to 90%

– Shares of HDFC Bank have gained 10% so far this year and are 3.5% away from their all-time high level of ₹2,027.

– On the other hand, ICICI Bank shares are up 11% so far this year and are also 3% away from their all-time high level of ₹1,471.

– Q1 is usually weak for Agri loans

– As a result, slippages for the lender may go up this quarter

– Credit costs expected to remain stable on a sequential basis at 0.5%NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.