ICICI Bank Ltd Management Discussions

OPERATING ENVIRONMENT

Growth

Indias growth trajectory since fiscal 2023 has been revised higher, with fiscal 2023 and fiscal 2024 GDP growth now estimated at 7.6% year-on-year and 9.2% year-on- year respectively, led by stronger private consumption. Fiscal 2025 growth was 6.5% year-on-year. GDP for Q4-2025 rose 7.4% year-on-year, supported by growth in agriculture, industry, services and investment activity. Notably, private consumption improved in H2-2025. However, gross fixed capital formation was lower on a full year basis. Supportive monetary and fiscal policies, including tax cuts and RBI rate reductions, are likely to boost growth. Medium-term prospects remain positive, though global tariff uncertainty could weigh on exports.

Inflation

Inflation, as measured by the Consumer Price Index (CPI), softened from 4.2% in January 2025 to 3.6% in February 2025 and further to 3.3% in March 2025. For fiscal year 2025, average inflation has softened to 4.6% from 5.4% in previous fiscal year. Food inflation eased to 2.7%, while core inflation was slightly higher a 4.1%. RBI has revised the inflation estimates lower to 4.0% from 4.2% earlier.

Interest rates

Between April 2024 and August 2024, the Monetary Policy Committee (MPC) maintained status-quo on the policy rate and stance, citing volatile inflation and an uncertain inflationary and geo-political outlook. With slower growth in fiscal 2025, along with expectations of easing inflationary pressures, the MPC changed the policy stance to ‘Neutral in the October 2024 policy meeting, while keeping status quo on the policy rate. In the next policy meeting (December), the MPC maintained status-quo on the policy rate and stance but cut the Cash Reserve Ratio (CRR) rate by 50 basis points to 4%, to support liquidity conditions. After a pause of two years, the MPC began with an easing cycle by reducing the policy rate by 25 basis points to 6.25% in the February 2025 policy meeting, as the MPC was more confident on the inflation front, while acknowledging the required support to growth. Systemic liquidity improved significantly due in the later part of the year due to various liquidity measures by RBI.

Financial markets

During fiscal 2025, the Rupee depreciated by 2% from Rs 83.40 per USD at March 29, 2024 to Rs 85.46 per USD

at March 31, 2025. The benchmark S&P BSE Sensex increased by 4.39% during fiscal 2025 compared to 0.7% in fiscal 2024. The yields on the benchmark 10-year government securities moved from 7.05% at March 31, 2024 to 6.58% at March 31, 2025 with a highest of 7.22% on April 19, 2024.

Banking sector trends

Non-food credit growth of the banking system stood at 11% year-on-year in March 2025 compared to 16.3% year-on-year in March 2024 (excluding merger impact). Sectoral break-up of credit data available till March 2025, shows that credit growth was led by services at 12.4% year-on-year and personal credit at 11.6% year-on- year. In addition, industry credit also showed an uptick in growth at 7.8% year-on-year.

Deposit growth also moderated this year, with deposit growth at 10.3% year-on-year for the fortnight ending March 21, 2025 compared to 12.9% year-on-year growth at March 2024 (excluding merger impact). Growth of demand deposits reduced to 10.2% in March 2025 compared to 12.1% at March 2024 (excluding merger impact).

According to RBIs Financial Stability Report of December 2024, non-performing assets (NPAs) of scheduled commercial banks continued to decline, with gross NPA ratio at 2.6% and net NPA ratio at 0.6% at September 31, 2024 compared to a gross NPA ratio at 2.8% and net NPA ratio at 0.6% at March 31, 2024.

OUTLOOK

After no change in the policy rate for two years, the MPC has cut the policy rate by 25 basis points each in the February and April meeting, with the policy stance also changed to ‘Accommodative, signaling the direction of policy rate in the future (lower or pause). The Indian economy continues to be supported by a series of structural reforms implemented over the past years and continuing policy measures. The authorities are taking various steps to maintain macroeconomic stability and support growth in the context of global headwinds and a volatile external environment. In this backdrop, the Bank will remain focused on its long-term strategy, aligned with Indias evolving economic landscape and growth potential, while being mindful of risks.

STRATEGY

In fiscal 2025, the Bank continued to maintain its strategic focus on profit before tax excluding treasury within the guardrails of compliance and risk management. The Bank grew its credit portfolio with a focus on granularity and saw healthy growth across segments. The Bank has increased its focus on the customer 360-degree approach and holistically serving across ecosystems and micromarkets as ‘One Bank, One Team. The Bank is focused on initiatives that underscored the ethos of ‘Fair to Customer, Fair to Bank and enhancing customers trust in the Bank. The principles of ‘Return of Capital emphasising the need to prioritise conservation of capital. The Banks capital adequacy ratios were well above regulatory requirements as of March 31, 2025. The Bank has laid emphasis on strengthening operational resilience and enhancing delivery systems.

Going forward, the Bank continues its strategic approach based on three pillars of principles, coverage and delivery framework. Integrity, transparency and fairness continue to be core in serving customers and each employee is expected to uphold these values while representing the organisation. The Risk Appetite and Enterprise Risk Management framework articulates the Banks risk appetite and drills it down into a limit framework for various risk categories under which various business lines operate. The Bank aims to uphold risk and compliance culture. The Bank continues to make investments in technology and cybersecurity to strengthen the operational infrastructure, ensuring scalability and resiliency. The Bank continues to focus on simplifying banking for the customers and delivering quality experience. The Bank believes there are enough opportunities for profitable growth across various sectors of the Indian economy. The Bank continues to grow its loan portfolio in a granular manner with a focus on risk and reward, return of capital and containment of provisions within targeted levels being a key imperative. There are no specific targets for loan mix or segment-wise loan growth. The customer 360-degree approach underpins the Banks approach to holistically serve opportunities across ecosystems and micromarkets. The Bank aims to continue to grow its deposit franchise, maintain a stable and healthy funding profile with competitive advantage in cost of funds, and invest in building capabilities for the future. The focus is on maintaining a resilient balance sheet, sufficient liquidity, prudent provisioning and healthy capital adequacy. The Bank remains committed to high standards of governance and becoming a trusted financial partner for customers while creating value for all stakeholders.

See also "Integrated Report - Our Business Strategy".

STANDALONE FINANCIALS AS PER INDIAN GAAP

Summary

Profit before tax (excluding treasury gains) increased by 11.4% from Rs 544.79 billion in fiscal 2024 to Rs 607.14 billion in fiscal 2025. Core operating profit (i.e. profit before provisions and tax, excluding treasury gains) increased by 12.5% from Rs 581.22 billion in fiscal 2024 to Rs 653.96 billion in fiscal 2025 primarily due to an increase in net interest income by 9.2% and fee income by 14.8%, offset, in part, by an increase in operating expenses by 8.3%. Gain from treasury-related activities was Rs 19.03 billion in fiscal 2025 as compared to a gain of Rs 0.09 billion in fiscal 2024. Provisions and contingencies (excluding provision for tax) increased by 28.5% from Rs 36.43 billion in fiscal 2024 to Rs 46.83 billion in fiscal 2025. Profit after tax increased from Rs 408.88 billion in fiscal 2024 to Rs 472.27 billion in fiscal 2025.

Net interest income increased by 9.2% from Rs 743.06 billion in fiscal 2024 to Rs 811.65 billion in fiscal 2025 due to an increase in the average interest-earning assets, offset, in part, by a decrease in the net interest margin (NIM).

Fee income increased by 14.8% from Rs 207.96 billion in fiscal 2024 to Rs 238.70 billion in fiscal 2025. Dividend from subsidiaries/associates increased by 26.3% from Rs 20.73 billion in fiscal 2024 to Rs 26.19 billion in fiscal 2025. Operating expenses increased by 8.3% from Rs 391.33 billion in fiscal 2024 to Rs 423.72 billion in fiscal 2025.

Provisions and contingencies (excluding provision for tax) increased by 28.5% from Rs 36.43 billion in fiscal 2024 to Rs 46.83 billion in fiscal 2025 primarily due to an increase in specific provisions for non-performing loans and provision for investments, offset, in part, by a decrease in provision for standard assets and other assets. Provision for non-performing and other assets increased from Rs 9.45 billion in fiscal 2024 to Rs 40.15 billion in fiscal 2025. During fiscal 2025, there were higher net additions to nonperforming loans primarily in retail and rural loans. During fiscal 2024, there were higher recoveries from NPAs and upgrades in non-retail loans.

The provision coverage ratio on NPAs decreased from 80.3% at March 31, 2024 to 76.2% at March 31, 2025.

The income tax expense increased from Rs 136.00 billion in fiscal 2024 to Rs 153.89 billion in fiscal 2025. The effective tax rate decreased from 25.0% in fiscal 2024 to 24.6% in fiscal 2025 primarily due to change in composition of income.

Net worth increased by 22.5% from Rs 2,383.99 billion at March 31, 2024 to Rs 2,920.77 billion at March 31, 2025 primarily due to accretion to reserves out of retained profit, offset, in part, by payment of dividend for fiscal 2024.

Total assets increased by 13.2% from Rs 18,715.15 billion at March 31, 2024 to Rs 21,182.40 billion at March 31, 2025. Total advances increased by 13.3% from Rs 11,844.06 billion at March 31, 2024 to Rs 13,417.66 billion at March 31, 2025 primarily due to an increase in domestic advances by 13.9%. Total investments increased by 9.3% from Rs 4,619.42 billion at March 31, 2024 to Rs 5,047.57 billion at March 31, 2025. Cash and cash equivalents increased by 32.6% from Rs 1,399.26 billion at March 31, 2024 to Rs 1,855.62 billion at March 31, 2025.

Total deposits increased by 14.0% from Rs 14,128.25 billion at March 31, 2024 to Rs 16,103.48 billion at March 31, 2025. Term deposits increased by 14.6% from Rs 8,169.53 billion at March 31, 2024 to Rs 9,366.19 billion at March 31, 2025. Current and savings account (CASA) deposits increased by 13.1% from Rs 5,958.72 billion at March 31, 2024 to Rs 6,737.29 billion at March 31, 2025. Average CASA deposits increased by 10.6% from Rs 5,067.47 billion in fiscal 2024 to Rs 5,606.25 billion in fiscal 2025. Borrowings decreased by 1.1% from Rs 1,249.68 billion at March 31, 2024 to Rs 1,235.38 billion at March 31, 2025.

The Bank had a business center (branch) network of 6,983 branches, and network of 16,285 ATMs/CRMs at March 31, 2025.

The Bank is subject to Basel III capital adequacy guidelines stipulated by RBI. The total capital adequacy ratio of the Bank at March 31, 2025 (after deducting proposed dividend for fiscal 2025 from capital funds) in accordance with RBI guidelines on Basel III was 16.55% as compared to 16.33% at March 31, 2024. The Tier-1 capital adequacy ratio was 15.94% at March 31, 2025 as compared to 15.60% at March 31, 2024. The Common Equity Tier 1 (CET-1) ratio was 15.94% at March 31, 2025 as compared to 15.60% at March 31, 2024.

OPERATING RESULTS DATA

The following table sets forth, for the periods indicated, the operating results data.

Rs in billion, except percentages

Particulars	Fiscal 2024	Fiscal 2025	% change
Interest income	Rs 1,428.91	Rs 1,632.64	14.3%
Interest expense	685.85	820.99	19.7
Net interest income	743.06	811.65	9.2
Fee income1	207.96	238.70	14.8
Dividend from subsidiaries /associates	20.73	26.19	26.3
Other income	0.80	1.14	42.5
Core operating income	972.55	1,077.68	10.8
Operating expenses	391.33	423.72	8.3
Core operating profit	581.22	653.96	12.5
Treasury gains	0.09	19.03	-
Operating profit	581.31	672.99	15.8
Provisions, net of write-backs	36.43	46.83	28.5
Profit before tax	544.88	626.16	14.9
Tax, including deferred tax	136.00	153.89	13.2
Profit after tax	Rs 408.88	Rs 472.27	15.5%

1 Includes merchant foreign exchange income, margin on customer derivative transactions and income on sale of priority sector lending certificates (PSLCs)

2 All amounts have been rounded off to the nearestRs 10.0 million.

3 Prior period figures have been re-grouped, where necessary.

Key ratios

The following table sets forth, for the periods indicated, the key financial ratios.

Particulars	Fiscal 2024	Fiscal 2025
Net interest margin (%)	4.53	4.32
Cost to income (%)3	40.23	38.63
Provisions to core operating profit (%)	6.27	7.16
Return on average equity (%)1	18.71	17.95
Return on average assets (%)2	2.37	2.40
Earnings per share (Rs)	58.38	67.01
Book value per share (Rs)	339.49	410.11

1 Return on average equity is the ratio of the net profit after tax to the quarterly average equity share capital and reserves.

2 Return on average assets is the ratio of net profit after tax to average assets.

3 Cost represents operating expense. Income represents net interest income and non-interest income.

The return on average equity, return on average assets and earnings per share increased primarily due to an increase in profit after tax.

Net interest income and spread analysis

The following table sets forth, for the periods indicated, the net interest income and spread analysis.

Rs in billion, except percentages

Particulars	Fiscal 2024	Fiscal 2025	% change
Interest income	1,428.91	1,632.64	14.3%
Interest expense	685.85	820.99	19.7
Net interest income	743.06	811.65	9.2
Average interest-earning assets	16,412.08	18,784.55	14.5
Average interest-bearing liabilities	14,121.39	16,093.66	14.0%
Net interest margin	4.53%	4.32%	-
Average yield	8.71%	8.69%	-
Average cost of funds	4.86%	5.10%	-
Interest spread	3.85%	3.59%	-

1 All amounts have been rounded off to the nearestRs 10.0 million.

Net interest income increased by 9.2% from Rs 743.06 billion in fiscal 2024 to Rs 811.65 billion in fiscal 2025 primarily due to an increase of 14.5% in the average interest-earning assets, offset, in part, by a decrease in the net interest margin by 21 basis points.

Net interest margin decreased by 21 basis points from 4.53% in fiscal 2024 to 4.32% in fiscal 2025. The yield on average interest-earning assets decreased by 2 basis points from 8.71% in fiscal 2024 to 8.69% in fiscal 2025 primarily due to a decrease in yield on average advances. The cost of funds increased by 24 basis points from 4.86% in fiscal 2024 to 5.10% in fiscal 2025 primarily due to an increase in cost of term deposits. The interest spread decreased by 26 basis points from 3.85% in fiscal 2024 to 3.59% in fiscal 2025.

The following table sets forth, for the periods indicated, the trend in yield, cost, spread and margin.

Particulars	Fiscal 2024	Fiscal 2025
Yield on interest-earning assets	8.71%	8.69%
- On advances	9.83	9.76
- On investments	7.18	7.20
- On SLR investments	7.16	7.23
- On other investments	7.34	7.02
- On other interest-earning assets	2.90	3.11
Cost of interest-bearing liabilities	4.86	5.10
- Cost of deposits	4.61	4.91
- Current and savings account (CASA) deposits	2.24	2.23
- Term deposits	6.21	6.63
- Cost of borrowings	6.86	6.70
Interest spread	3.85	3.59
Net interest margin	4.53%	4.32%

The yield on average interest-earning assets decreased by 2 basis points from 8.71% in fiscal 2024 to 8.69% in fiscal 2025 primarily due to the following factors:

• The yield on average interest-earning assets decreased mainly due to decrease in yield on advances.

• The yield on domestic advances decreased by 8 basis points from 9.93% in fiscal 2024 to 9.85% in fiscal 2025. The decrease in yield is primarily due to an incremental lending at lower yields. Of the total domestic loan book 52.6% has interest rate linked to repo rate, 31.6% has fixed interest rates, 14.9% has interest rate linked to MCLR and other older benchmarks and 0.9% has interest rate linked to other external benchmarks.

Reserve Bank of India decreased the repo rate by 50 basis points from 6.50% in February 2025 to 6.00% in April 2025. The future movement in the yield on advances will depend on the increase/decrease in the repo rate and the systemic interest rates.

The yield on overseas advances decreased by 64 basis points from 6.75% in fiscal 2024 to 6.11% in fiscal 2025 primarily due to reduction in benchmark SOFR rate. SOFR rate decreased from 5.34% in fiscal 2024 to 4.41% in fiscal 2025.

The yield on average interest-earning investments increased by 2 basis points from 7.18% in fiscal 2024 to 7.20% in fiscal 2025.

The yield on Indian government securities increased by 7 basis points from 7.16% in fiscal 2024 to 7.23% in fiscal 2025. This was primarily driven by change of book yield of certain securities reclassified from held-to-maturity (HTM) to available-for-sale (AFS) category under the new investment guidelines applicable from April 1, 2024. The reclassified securities were required to be reflected at market yield at April 1, 2024 as compared to historical book yield. Since the market yield on these securities was higher than the book yield, there was an increase in overall SLR yield.

The yield on non-SLR investments decreased by 32 basis points from 7.34% in fiscal 2024 to 7.02% in fiscal 2025. The yield on domestic non-SLR investments decreased by 49 basis points from 7.70% in fiscal 2024 to 7.21% in fiscal 2025 primarily due to a decrease in yield on pass through certificates and an increase in proportion of equity investment and certificates deposits which are lower yielding, offset, in part, by an increase in yield and proportion of bonds and debentures. The yield on overseas non-SLR investments increased by 8 basis points from 4.76% in fiscal 2024 to 4.84% in fiscal 2025 primarily due to an increase in yield on equity investment and bonds and

debenture, offset, in part, by a decrease in proportion of bonds and debentures.

The yield on other interest-earning assets increased by 21 basis points from 2.90% in fiscal 2024 to 3.11% in fiscal 2025, primarily due to an increase in income on funding swaps, yield on term money lent and average balance with US Federal Reserve, offset, in part, by a decrease in average proportion of RIDF deposit and an increase in average balance with RBI which does not earn any interest.

Further, interest on income tax refund decreased from Rs 2.65 billion in fiscal 2024 to Rs 0.84 billion in fiscal 2025. During fiscal 2025, there was a receipt of interest on service tax refund of Rs 1.00 billion. These receipts are neither consistent nor predictable and the amount and timing of such income depend on the nature and timing of determinations by tax authorities.

The cost of funds increased by 24 basis points from 4.86% in fiscal 2024 to 5.10% in fiscal 2025 primarily due to the following factors:

• The cost of average deposits increased by 30 basis points from 4.61% in fiscal 2024 to 4.91% in fiscal 2025 primarily due to an increase in cost of domestic term deposits. The cost of domestic term deposits increased by 43 basis points from 6.22% in fiscal 2024 to 6.65% in fiscal 2025 primarily due to repricing of deposits at higher rates.

The average CASA deposits as a percentage of total deposit were 39.0% in fiscal 2025 as compared to 40.4% in fiscal 2024.

• The cost of borrowings decreased by 16 basis points from 6.86% in fiscal 2024 to 6.70% in fiscal 2025. The cost of domestic borrowings decreased by 15 basis points from 6.94% in fiscal 2024 to 6.79% in fiscal 2025 primarily due to redemption of higher cost privately placed deep discount bonds and increase in proportion of bullion borrowings and call money borrowings, offset, in part, by an increase in average balance of interbank participatory certificate. The cost of overseas borrowings decreased by 52 basis points from 6.16% in fiscal 2024 to 5.64% in fiscal 2025 primarily due to a decrease in cost of term borrowings. Cost of term borrowings decreased primarily due to a reduction in the benchmark SOFR rate.

The Banks interest income, yield on advances, net interest income and net interest margin are impacted by systemic liquidity, the competitive environment, level of additions to non-performing loans, regulatory developments, monetary policy and economic and geopolitical factors. Interest rates on about 53.5% of Banks domestic loans are linked to external market benchmarks. The differential movements in the external benchmark rates compared to cost of funds of the Bank impact the Banks net interest income and net interest margin.

The following table sets forth, for the period indicated, the trend in average interest-earning assets and average interestbearing liabilities:

Rs in billion, except percentages

Particulars	Fiscal 2024	Fiscal 2025	% change
Advances	Rs 11,283.57	Rs 12,954.29	14.8%
Interest-earning investments2	3,987.01	4,582.39	14.9
Other interest-earning assets	1,141.50	1,247.87	9.3
Total interest-earning assets	16,412.08	18,784.55	14.5
Deposits	12,557.61	14,378.66	14.5
Borrowings12	1,563.78	1,715.00	9.7
Total interest-bearing liabilities	Rs 14,121.39	Rs 16,093.66	14.0%

1 Average borrowing and average advances have been grossed up for average inter bank participation certificates and average bills rediscounted.

2 Average investments and average borrowings include average short-term repurchase transactions.

3 All amounts have been rounded off to the nearestRs 10.0 million.

The average volume of interest-earning assets increased by 14.5% from Rs 16,412.08 billion in fiscal 2024 to Rs 18,784.55 billion in fiscal 2025 primarily due to an increase in average advances by Rs 1,670.72 billion, average investments by Rs 595.38 billion and average other interest-earning assets by Rs 106.37 billion.

Average advances increased by 14.8% from Rs 11,283.57 billion in fiscal 2024 to Rs 12,954.29 billion in fiscal 2025 due to an increase of 15.5% in average domestic advances, offset, in part, by a decrease of 6.6% in average overseas advances.

Average interest-earning investments increased by 14.9% from Rs 3,987.01 billion in fiscal 2024 to Rs 4,582.39 billion in fiscal 2025. Average interest-earning investments in Indian government securities increased by 11.4% from Rs 3,459.66 billion in fiscal 2024 to Rs 3,854.47 billion in fiscal 2025. Average interest-earning non-SLR investments increased by 38.0% from Rs 527.35 billion in fiscal 2024 to Rs 727.92 billion in fiscal 2025.

Average other interest-earning assets increased by 9.3% from Rs 1,141.50 billion in fiscal 2024 to Rs 1,247.87 billion in fiscal 2025 primarily due to an increase in balance with RBI, balance with US Federal Reserve and margin paid on treasury related products, offset, in part, by a decrease in RIDF and related deposits.

Average interest-bearing liabilities increased by 14.0% from Rs 14,121.39 billion in fiscal 2024 to Rs 16,093.66 billion in fiscal 2025 primarily due to an increase in average deposits by Rs 1,821.05 billion and an increase in average borrowings by Rs 151.22 billion.

Average deposits increased by 14.5% from Rs 12,557.61 billion in fiscal 2024 to Rs 14,378.66 billion in fiscal 2025 due to an increase in average term deposits by Rs 1,282.25 billion and average CASA deposits by Rs 538.78 billion.

Average borrowings increased by 9.7% from Rs 1,563.78 billion in fiscal 2024 to Rs 1,715.00 billion in fiscal 2025 primarily due to an increase in inter-bank participatory certificates, bullion borrowings, call money borrowings and refinance borrowings, offset, in part, by a decrease in privately placed bonds.

Fee income

Fee income primarily includes fees from retail customers such as loan processing fees, fees from cards business, account servicing charge, income from foreign exchange transactions and third party referral fees and commercial banking fees such as loan processing fees and transaction banking fees, income from foreign exchange transactions and margin on derivative transactions.

Fee income increased by 14.8% from Rs 207.96 billion in fiscal 2024 to Rs 238.70 billion in fiscal 2025 primarily due to an increase in payment and cards fees, lending linked fees, income from forex and derivatives products and transaction banking fees.

Dividend from subsidiaries/associates

Dividend from subsidiaries/associates increased by 26.3% from Rs 20.73 billion in fiscal 2024 to Rs 26.19 billion in fiscal 2025.

The following table sets forth, for the periods indicated, the details of dividend received from subsidiaries/associates:

Rs in billion

Name of the entity	Fiscal 2024	Fiscal 2025
ICICI Prudential Asset Management company Limited	7.53	10.26
ICICI Securities Limited	5.14	4.11
ICICI Securities Primary Dealership Limited	1.66	3.48
ICICI Bank Canada	2.14	3.01
ICICI Lombard General Insurance Company Limited	2.48	2.94
ICICI Bank UK PLC	0.83	1.09
ICICI Home Finance Company Limited	0.30	0.60
ICICI Prudential Life Insurance Company Limited	0.44	0.44
ICICI Venture Funds Management Company Limited	0.10	0.15
India Infradebt Limited	0.11	0.11
ICICI Prudential Trust Limited1	0.00	0.00
Total	20.73	26.19

1 0.00 representsinsignificant amount

2 All amounts have been rounded off to the nearestRs 10.0 million.

Other income

Other income increased from Rs 0.8 billion in fiscal 2024 to Rs 1.14 billion in fiscal 2025.

Operating expenses

The following table sets forth, for the periods indicated, the principal components of operating expenses.

Rs in billion, except percentages

Particulars	Fiscal 2024	Fiscal 2025	% change
Payments to and provisions for employees	Rs 151.42	Rs 165.41	9.2%
Other administrative expenses	239.91	258.31	7.7
Total operating expenses	Rs 391.33	Rs 423.72	8.3%

1 All amounts have been rounded off to the nearestRs 10.0 million.

Operating expenses primarily include employee expenses, depreciation on assets and other administrative expenses. Operating expenses increased by 8.3% from Rs 391.33 billion in fiscal 2024 to Rs 423.72 billion in fiscal 2025.

Payments to and provisions for employees

Employee expenses increased by 9.2% from Rs 151.42 billion in fiscal 2024 to Rs 165.41 billion in fiscal 2025 primarily due to an increase in salary cost, provision for performance bonus and performance-linked retention pay, provision requirement for retirement benefit obligations and fair value accounting of employee stock options. Salary cost increased primarily due to impact of annual increment and promotions, offset, in part, by a decrease in average staff strength (number of employees at March 31, 2024: 141,009 and at March 31, 2025: 130,957).

The employee base includes sales executives, employees on fixed term contracts and interns.

Other administrative expenses

Other administrative expenses primarily include rent, taxes and lighting, advertisements, sales promotion, repairs and maintenance, direct marketing expenses, depreciation, premium paid towards priority sector lending certificates and other expenditure. Other administrative expenses increased by 7.7% from Rs 239.91 billion in fiscal 2024 to Rs 258.31 billion in fiscal 2025 primarily due to an increase in technology related expenses, reward point expenses, premium paid towards Priority Sector Lending Certificates and advertisement and sales promotion expenses.

PROFIT/(LOSS) ON TREASURY-RELATED ACTIVITIES (NET)

Gains from treasury-related activities includes income from sale of investments and changes in unrealised profit/ (loss) on account of revaluation of investments in the fixed income portfolio, equity and preference portfolio and units of venture funds and security receipts (SRs). Further, it includes income from foreign exchange transactions comprising various foreign exchange and derivative products, including options and swaps.

In September 2023, RBI issued new guidelines on "Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2023", which have become applicable from April 1, 2024. Due to implementation of RBI direction, there was a change in recognition and valuation of investment. Till March 31, 2024, the Bank had been following accounting policies for investments primarily based on the Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021 where securities were valued scrip-wise and classified into ‘Held to Maturity (HTM), ‘Available for Sale (AFS) and ‘Held for Trading (HFT). Depreciation/appreciation on securities was aggregated for each category. Net appreciation in each category under each investment classification, if any, being unrealised, was ignored, while net depreciation in each category was provided. HTM securities were carried at their acquisition cost or at amortized cost, if acquired at a premium over the face value. Any premium over the face value of fixed rate and floating rate securities acquired was amortized over the remaining period to maturity on a constant yield basis and straight line basis respectively. From April 1, 2024, all investments are classified as HTM, AFS or FVTPL, with HFT now as a subcategory under FVTPL. Investments classified under HTM are valued at amortized cost, while investments classified under AFS are carried at fair value through AFS reserves and investments classified under FVTPL are fair valued through profit and loss.

Gains from treasury-related activities increased from Rs 0.09 billion in fiscal 2024 to Rs 19.03 billion in fiscal 2025. Treasury income in fiscal 2024 includes transfer of accumulated translation loss of Rs 3.40 billion related to closure of Banks Offshore Banking Unit, SEEPZ Mumbai, to profit and loss account.

PROVISIONS AND CONTINGENCIES (EXCLUDING PROVISIONS FOR TAX)

The following tables set forth, for the periods indicated, the components of provisions and contingencies.

Rs in billion, except percentages

Particulars	Fiscal 2024	Fiscal 2025	% change
Provision for non-performing and other assets1	Rs 9.45	Rs 40.15	-
Provision for investments (including credit substitutes) (net)	6.89	8.47	22.9%
Provision for standard assets	11.55	5.75	(50.2%)
Others	8.54	(7.56)	-
Total provisions and contingencies (excluding provision for tax)	Rs 36.43	Rs 46.81	28.5%

1 Includes restructuring related provision.

2 All amounts have been rounded off to the nearestRs 10.0 million.

Provisions and contingencies (excluding provisions for tax) increased from Rs 36.43 billion in fiscal 2024 to Rs 46.81 billion in fiscal 2025.

Provision for non-performing and other assets was Rs 9.45 billion in fiscal 2024 as compared to Rs 40.15 billion in fiscal 2025. During fiscal 2025, there were higher net additions to non-performing loans primarily in retail and rural loans. During fiscal 2024, there were higher recoveries from NPAs and upgrades in non-retail loans.

The provision coverage ratio (excluding cumulative technical/prudential write-offs) on NPAs decreased from 80.3% at March 31, 2024 to 76.2% at March 31, 2025.

Provision for investments increased from Rs 6.89 billion in fiscal 2024 to Rs 8.47 billion in fiscal 2025. During fiscal 2025, the Bank made a provision of Rs 16.05 billion on SRs received on conversion of loans (the Bank was already holding an equivalent provision against these loans), offset, in part, by write-back of provision of Rs 3.91 billion on its investment in Alternate Investment Funds (AIFs), Rs 2.39 billion on redemption of SRs and Rs 0.39 billion on equity shares due to an increase in share price.

RBI, through its revised norms for Government Guaranteed Security Receipts (SRs) issued on March 29, 2025, has permitted banks to reverse any excess provision to the

Profit and Loss Account in the year of transfer, if a loan is transferred to an ARC for a value higher than the net book value (NBV), and the sale consideration comprises only of cash and SRs guaranteed by the Government of India. The Bank, on a prudent basis, continues to hold provision against such SRs which will be reversed on actual receipt of recoveries or approval of claims, if any, by the government.

Provision for standard assets decreased from Rs 11.55 billion in fiscal 2024 to Rs 5.75 billion in fiscal 2025. During fiscal 2024, there was an increase in provision primarily due to an increase in domestic loans and upgrade of a stage 3 exposure in an overseas branch to stage 2. The cumulative general provision held at March 31, 2025 was Rs 64.45 billion (March 31, 2024: Rs 58.63 billion).

Other provisions and contingencies was Rs 8.54 billion in fiscal 2024 as compared to a write-back of Rs 7.56 billion in fiscal 2025.

TAX EXPENSE

The income tax expense increased from Rs 136.00 billion in fiscal 2024 to Rs 153.89 billion in fiscal 2025. The effective tax rate decreased from 25.0% in fiscal 2024 to 24.6% in fiscal 2025 primarily due to change in composition of income.

FINANCIAL CONDITION

Assets

The following table sets forth, at the dates indicated, the principal components of assets.

Rs in billion, except percentages

Assets	At March 31, 2024	At March 31, 2025	% change
Cash and bank balances	Rs 1,399.26	Rs 1,855.62	32.6%
Investments	4,619.42	5,047.57	9.3
- Government and other approved investments1	3,755.74	3,996.86	6.4
- Equity investment in subsidiaries	111.32	191.36	71.9
- Other investments	752.36	859.34	14.2
Advances (net of BRDS/IBPC)2	11,844.06	13,417.66	13.3
- Domestic	11,509.55	13,109.81	13.9
- Overseas branches	334.51	307.85	(8.0)
Fixed assets (including leased assets)	108.60	128.39	18.2
Other assets	743.81	733.16	(1.4)
- RIDF and other related deposits3	200.92	134.93	(32.8)
Total assets	Rs 18,715.15	Rs 21,182.40	13.2%

1 Banks in India are required to maintain a specified percentage, currently 18.00% (at March 31, 2025), of their net demand and time liabilities by way of investments in instruments referred as SLR securities by RBI or liquid assets like cash and gold.

2 Bill Rediscounting Scheme (BRDS)/Interbank Participatory Certificate (IBPC).

3 Deposits made in Rural Infrastructure Development Fund and other related deposits pursuant to shortfall in the amount required to be lent to certain specified sectors called priority sector as per RBI guidelines.

4 All amounts have been rounded off to the nearestRs 10.0 million.

Total assets of the Bank increased by 13.2% from Rs 18,715.15 billion at March 31, 2024 to Rs 21,182.40 billion at March 31, 2025 primarily due to 32.6% increase in cash and cash equivalents, 13.3% increase in advances and 9.3% increase in investments.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and balances with RBI and other banks, including money at call and short notice. Cash and cash equivalents increased by 32.6% from Rs 1,399.26 billion at March 31, 2024 to Rs 1,855.62 billion at March 31, 2025. The increase is primarily due to an increase in Standing Deposit Facility lending to RBI by Rs 324.94 billion, balance with US Federal Reserve by Rs 261.81 billion, offset, in part, by a decrease in money at call and short notice by Rs 109.59 billion.

INVESTMENTS

Total investments increased by 9.3% from Rs 4,619.42 billion at March 31, 2024 to Rs 5,047.65 billion at March 31, 2025. Investments in Indian government securities increased by 6.4% from Rs 3,755.74 billion at March 31, 2024 to Rs 3,996.87 billion at March 31, 2025. Non-SLR investments increased by 21.7% from Rs 863.68 billion at March 31, 2024 to Rs 1,050.70 billion at March 31, 2025 primarily due to an increase in certificate of deposits by Rs 84.69 billion, equity investment in subsidiaries by Rs 80.03 billion and bonds and debentures by Rs 39.12 billion, offset, in part, by a decrease in commercial paper by Rs 38.52 billion, pass through certificate by Rs 26.14 billion. During Q4-2025, pursuant to Scheme of Arrangement between ICICI Bank Limited, ICICI Securities Limited (I-Sec) and their respective shareholders, the Bank issued equity shares to the public shareholders of I-Sec for acquisition of additional stake in I-Sec.

Domestic investments increased by 9.4% from Rs 4,548.30 billion at March 31, 2024 to Rs 4,977.59 billion at March 31, 2025. Overseas investments decreased by 1.6% from Rs 71.12 billion at March 31, 2024 to Rs 69.98 billion at March 31, 2025.

ADVANCES

Net advances (gross of BRDS/IBPC) increased by 12.8% from Rs 12,137.60 billion at March 31, 2024 to Rs 13,693.66 billion at March 31, 2025. Net advances (net of BRDS/ IBPC) increased by 13.3% from Rs 11,844.06 billion at March 31, 2024 to Rs 13,417.66 billion at March 31, 2025.

Domestic advances increased by 13.9% from Rs 11,509.55 billion at March 31, 2024 to Rs 13,109.81 billion at March 31, 2025 primarily due to an increase in retail advances. Net retail advances increased by 8.9% from Rs 6,588.52 billion at March 31, 2024 to Rs 7,172.23 billion at March 31, 2025. Business banking portfolio increased by 33.7% from Rs 1,970.40 billion at March 31, 2024 to Rs 2,633.67 billion at March 31, 2025. Advances of rural business increased by 5.1% from Rs 745.67 billion at March 31, 2024 to Rs 783.40 billion at March 31, 2025. The domestic corporate portfolio increased by 9.4% from Rs 2,151.38 billion at March 31, 2024 to Rs 2,353.64 billion at March 31, 2025.

Net advances of overseas branches decreased by 8.0% from Rs 334.51 billion at March 31, 2024 to Rs 307.85 billion at March 31, 2025.

FIXED AND OTHER ASSETS

Fixed assets (net block) increased by 18.2% from Rs 108.60 billion at March 31, 2024 to Rs 128.39 billion at March 31, 2025.

Other assets decreased by 1.4% from Rs 743.81 billion at March 31, 2024 to Rs 733.16 billion at March 31, 2025 primarily due to a decrease RIDF deposits and positive mark-to-market on forex and derivative transactions, offset, in part, by an increase in margin deposit paid for treasury product and interest accrued on loans and investments.

LIABILITIES

The following table sets forth, at the dates indicated, the principal components of liabilities (including capital and reserves).

Rs in billion, except percentages

Liabilities	At March 31, 2024	At March 31, 2025	% change
Equity share capital	Rs 28.10	Rs 34.95	24.4%
Reserves	2,355.89	2,885.82	22.5
Deposits	14,128.25	16,103.48	14.0
- Savings deposits	4,023.00	4,407.72	9.6
- Current deposits	1,935.72	2,329.57	20.3
- Term deposits	8,169.53	9,366.19	14.6
Borrowings (excluding subordinated debt)	1,221.18	1,215.87	(0.4)
- Domestic	925.46	971.71	5.0
- Overseas branches	295.72	244.16	(17.4)
Subordinated debt (included in Tier-1 and Tier-2 capital)	28.50	19.51	(31.5)
Other liabilities	953.23	922.77	(3.2)
Total liabilities	Rs 18,715.15	Rs 21,182.40	13.2%

1 All amounts have been rounded off to the nearestRs 10.0 million.

Total liabilities (including capital and reserves) increased by 13.2% from Rs 18,715.15 billion at March 31, 2024 to Rs 21,182.40 billion at March 31, 2025 primarily due to a 22.5% increase in net worth and a 14.0% increase in deposits, offset, in part, by a 3.2% decrease in other liabilities.

DEPOSITS

Deposits increased by 14.0% from Rs 14,128.25 billion at March 31, 2024 to Rs 16,103.48 billion at March 31, 2025.

Term deposits increased by 14.6% from Rs 8,169.53 billion at March 31, 2024 to Rs 9,366.19 billion at March 31, 2025. Savings account deposits increased by 9.6% from Rs 4,023.00 billion at March 31, 2024 to Rs 4,407.72 billion at March 31, 2025 and current account deposits increased by 20.3% from Rs 1,935.72 billion at March 31, 2024 to Rs 2,329.57 billion at March 31, 2025. CASA deposits increased by 13.1% from Rs 5,958.72 billion at March 31, 2024 to Rs 6,737.29 billion at March 31, 2025.

Average savings account deposits increased by 10.2% from Rs 3,584.21 billion at March 31, 2024 to Rs 3,949.99 billion at March 31, 2025 and average current account deposits increased by 11.7% from Rs 1,483.26 billion at March 31, 2024 to Rs 1,656.27 billion at March 31, 2025. Average current and savings account deposits increased by 10.6% from Rs 5,067.47 billion at March 31, 2024 to Rs 5,606.25 billion at March 31, 2025. Average CASA ratio was 39.0% at March 31, 2025 compared to 40.4% at March 31, 2024.

Deposits of overseas branches increased from Rs 151.48 billion at March 31, 2024 to Rs 185.68 billion at March 31, 2025.

Total deposits at March 31, 2025 formed 92.9% of the funding (i.e., deposits and borrowings) as compared to 91.9% at March 31, 2024.

BORROWINGS

Borrowings decreased by 1.1% from Rs 1,249.68 billion at March 31, 2024 to Rs 1,235.38 billion at March 31, 2025 primarily due to a decrease in privately placed bonds, term money borrowings and foreign currency bond borrowing, offset, in part, by an increase refinance borrowing, call money borrowings. Net borrowings of overseas branches decreased from Rs 295.72 billion at March 31, 2024 to Rs 244.16 billion at March 31, 2025.

OTHER LIABILITIES

Other liabilities decreased by 3.2% from Rs 953.23 billion at March 31, 2024 to Rs 922.77 billion at March 31, 2025 primarily due to a decrease in bills payable and mark to market on forex and derivative transactions. The Bank is an active participant in the interest and foreign exchange derivative market. While the positive mark-to-market on such transactions are accounted in ‘Other Assets, the negative mark-to-market are accounted in ‘Other Liabilities.

EQUITY SHARE CAPITAL AND RESERVES

Equity share capital and reserves increased by 22.5% from Rs 2,383.99 billion at March 31, 2024 to Rs 2,920.77 billion at March 31, 2025 primarily due to accretion to reserves out of retained profit. At March 31, 2025, the Banks Tier- 1 capital adequacy ratio was 15.94% as against the requirement of 9.70% and total capital adequacy ratio was 16.55% as against the requirement of 11.70%.

Off balance sheet items, commitments and contingencies

The following table sets forth, for the periods indicated, the principal components of contingent liabilities.

Rs in billion

Particulars	At March 31, 2024	At March 31, 2025
Claims against the Bank, not acknowledged as debts	Rs 93.29	Rs 104.03
Liability for partly paid investments	0.09	0.02
Notional principal amount of outstanding forward exchange contracts	15,600.22	17,294.92
Guarantees given on behalf of constituents	1,493.65	1,784.50
Acceptances, endorsements and other obligations	520.73	666.37
Notional principal amount of currency swaps	541.26	769.31
Notional principal amount of interest rate swaps and currency options and interest rate futures	28,197.21	39,694.11
Other items for which the Bank is contingently liable	111.17	83.87
Total	Rs 46,557.62	Rs 60,397.13

1 All amounts have been rounded off to the nearestRs 10.0 million.

The Bank is an active market participant in the interest rate and foreign exchange derivative market for trading and market making purposes, which are carried out primarily for customer transactions and managing the proprietary position on interest rate and foreign exchange risk. The notional amount of interest rate swaps and currency options increased from Rs 28,197.21 billion at March 31, 2024 to Rs 39,694.11 billion at March 31, 2025 primarily due to an increase in market making activities and client flow.

The Bank enters into foreign exchange contracts in its normal course of business, to exchange currencies at a prefixed price at a future date. This item represents the notional principal amount of such contracts, which are derivative instruments. With respect to the transactions entered into with its customers, the Bank generally enters into off-setting transactions in the inter-bank market. This results in generation of a higher number of outstanding transactions, and hence a large value of gross notional principal of the portfolio, while the net market risk is lower. The notional principal amount of outstanding forward exchange contracts increased from Rs 15,600.22 billion at March 31, 2024 to Rs 17,294.92 billion at March 31, 2025 primarily due to increase in trading and market making activities in forwards to facilitate client flow and capture opportunities in the forward market.

The Bank records such foreign exchange contracts and derivatives transactions with either hedging/balance sheet management intent or with a trading intent. All the transactions done for trading purposes are fair valued and the hedging/balance sheet management transactions are accounted as per the RBI guidelines/Accounting Standards.

CONCENTRATION OF EXPOSURES1

The Bank follows a policy of portfolio diversification and evaluates its total financing exposure to a particular industry in the light of its forecasts of growth and profitability for that industry. The Banks Credit Risk Management Group monitors all major sectors of the economy and specifically tracks industries in which the Bank has credit exposures. The Bank monitors developments in various sectors to assess potential risks in its portfolio and new business opportunities. The Banks policy is to limit its portfolio to any particular industry (other than retail loans) to 15.0% of its total exposure. In addition, the Bank has a framework for managing concentration risk with respect to single borrower and group exposures, based on the internal rating and track record of the borrowers. The exposure limits for lower rated borrowers and groups are substantially lower than the regulatory limits.

The following tables set forth, at the dates indicated, the composition of the Banks exposure.

Rs in billion, except percentages

	March 31, 2024		March 31, 2025
Industry	Total exposure	% of total exposure	Total exposure	% of total exposure
Retail finance2	9,331.73	39.1	10,097.78	37.4
Services - finance	1,936.74	8.1	2,183.87	8.1
Wholesale/retail trade	1,388.47	5.8	1,745.96	6.5
Banks	1,065.87	4.5	1,336.21	4.9
Electronics and engineering	965.35	4.0	1,195.65	4.4
Services - non-finance	878.34	3.7	1,183.62	4.4
Rural retail	1,108.41	4.6	1,128.20	4.2
Road, ports, telecom, urban development and other infrastructure	723.12	3.0	857.64	3.2
Crude petroleum/refining and petrochemicals	833.04	3.5	743.73	2.8
Construction	565.92	2.4	725.63	2.7
Real estate activities	603.15	2.5	710.54	2.6
Iron and steel (including iron and steel products)	537.92	2.3	645.08	2.4
Chemical and fertilisers	433.67	1.8	535.01	2.0
Power	531.19	2.2	501.67	1.9
Manufacturing products (excluding metal and metal products)	341.93	1.4	439.98	1.6
Automobiles	341.47	1.4	390.16	1.4
Textile	277.61	1.2	334.72	1.2
Food & beverages	233.99	1.0	304.86	1.1
Mutual funds	235.92	1.0	222.46	0.8
Other industries3	1,505.86	6.5	1,722.58	6.4
Total	23,839.70	100.0	27,005.35	100.0

1 Represents credit and investment exposures as per RBI guidelines on exposure norms.

2 Includes home loans, automobile loans, commercial business loans, personal loans, credit cards and loans against securities.

3 Other industries primarily include gems and jewelry, mining, cement, shipping, drugs and pharmaceuticals, metal and metal products (excluding iron and steel) and FMCG.

4 All amounts have been rounded off to the nearestRs 10.0 million.

5 Prior period figures have been re-grouped, where necessary.

The exposure to the top 20 non-bank borrowers as a percentage of total exposure decreased from 8.3% of total exposure of the Bank at March 31, 2024 to 7.5% at March 31, 2025. All top 20 borrowers as of March 31, 2024 are rated A- and above internally. The exposure to the top 10 borrower groups decreased marginally from 10.0% of total exposure of the Bank at March 31, 2024 to 9.6% at March 31, 2025.

The following table sets forth, at the dates indicated, the composition of the Banks outstanding net advances:

Rs in billion

Particulars	March 31, 2024	March 31, 2025
Advances	11,844.06	13,417.66
- Domestic book	11,509.55	13,109.81
- Retail	6,588.52	7,172.23
- Rural	745.48	783.40
- Business banking	1,970.40	2,633.67
- Corporate and others	2,205.15	2,520.51
- Overseas book	334.51	307.85

1 Net of Bill Rediscounting Scheme (BRDS)/Interbank Participatory Certificate (IBPC).

Net retail advances increased by 8.9% in fiscal 2025 compared to an increase of 13.3% in total advances. The share of net retail advances was 53.5% of net advances at March 31, 2025 as compared to 55.6% of net advances at March 31, 2024. Including non-fund based outstanding, the share of retail portfolio was 43.8% of the total portfolio at March 31, 2025.

The overseas loan portfolio, in US dollar terms, declined by 10.2% year-on-year at March 31, 2025. The year-on- year decrease in the overseas loan portfolio was primarily on account of repayment of short-term trade advances/ WCDL and term loans. The overseas loan portfolio was 2.3% of the overall loan book at March 31, 2025. The corporate fund and non-fund outstanding, net of cash/

bank/financial institutions/insurance backed lending, was USD 2.96 billion at March 31, 2025. Out of USD 2.96 billion, 91.0% of the outstanding was to Indian corporates and their subsidiaries and joint ventures and 7.1% of the outstanding was to non-India companies with Indian or India-linked operations and activities. The portfolio in this segment is primarily to well-rated companies and the Indian operations of these companies are target customers for the Banks deposit and transaction banking franchise. The Bank would continue to pursue risk- calibrated opportunities in this segment. The non-India linked corporate portfolio reduced by 3.5% from about USD 274.9 million year-on-year to USD 265.2 million at March 31, 2025.

The following table sets forth, at the dates indicated, the composition of the Banks net outstanding retail advances.

Rs in billion, except percentages

	March 31, 2024		March 31, 2025
	Total retail advances	% of total retail advances	Total retail advances	% of total retail advances
Home loans	3,959.21	59.4	4,395.85	61.3
Personal loans	1,166.77	17.5	1,215.55	16.9
Automobile loans	612.09	9.2	629.09	8.8
Credit cards	513.21	7.7	573.41	8.0
Commercial business	314.26	4.7	336.32	4.7
Others1	22.99	1.5	22.01	0.3
Total retail advances2	6,588.52	100.0	7,172.23	100.0

1 Includes loans against securities and dealer financing.

2 Gross of Bill Rediscounting Scheme (BRDS)/Interbank Participatory Certificate (IBPC) amounting to Rs 150.0 billion at March 31, 2024 and Rs 161.5 billion at March 31, 2025.

3 All amounts have been rounded off to the nearest 10.0 million.

The following table sets forth, at the dated indicated, the composition of the Banks net outstanding rural advances:

Rs in billion

Particulars	March 31, 2024	March 31, 2025
Farmer finance	266.53	302.15
Jewel loan	271.53	313.79
Others1	207.42	167.46
Rural advances	745.48	783.40

1 Includes term loans for farm equipment, self-help groups, loans to micro finance institutions for on-lending to individuals and inventory funding, etc.

The following table sets forth, at the dates indicated, the rating wise categorisation of the Banks net outstanding corporate portfolio:

Rs in billion, except percentages

Ratings category1	March 31, 2024	March 31, 2025
AA- and above	38.3%	35.9%
A+, A, A-	40.2	38.9
A- and above	78.5	74.8
BBB+, BBB, BBB-	20.0	24.1
BB and below2	1.1	0.8
Unrated	0.4	0.3
Total	100.0%	100.0%
Total net advances3	Rs 2,689.66	Rs 2,989.86

1 Based on internal ratings.

2 Includes net non-performing loans.

3 Includes domestic corporate and overseas loans.

Directed Lending

The following table sets forth, for the periods indicated, ICICI Banks average priority sector lending:

	Fiscal 2024		Fiscal 2025
Particulars	Amount ( billions)	% of adjusted net bank credit	Amount ( billions)	% of adjusted net bank credit	Target (% of adjusted net bank credit)
Agriculture Sector	1,739.94	18.1	2,025.15	18.0	18.0
- Small and marginal farmers	1,041.44	10.8	1,197.77	10.6	10.0
- Non-corporate farmers	1,378.20	14.4	1,627.61	14.5	13.8
Micro, small and medium enterprises	2,100.03	-	2,640.66	-	-
- Micro enterprises	792.71	8.3	882.04	7.8	7.5
Other priority sector	102.29	-	253.86	-	-
Total priority sector lending	3,942.26	41.1	4,919.67	43.7	40.0
- Weaker sections	1,157.15	12.1	1,377.63	12.2	12.0

1 The above includes Priority Sector Lending Certificate purchased/sold by the Bank.

Classification of loans

The following table sets forth, at the dates indicated, information regarding asset classification of the Banks gross non-performing assets (net of write-offs, interest suspense and derivative income reversals).

Rs in billion

Particulars	March 31, 2024	March 31, 2025
Non-performing assets
Sub-standard assets	87.13	91.94
Doubtful assets	96.04	78.65
Loss assets	96.45	71.07
Total non-performing assets1	279.62	241.66

1 Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.

2 All amounts have been rounded off to the nearestRs 10.0 million.

The following table sets forth, at the dates indicated, information regarding the Banks non-performing assets (NPAs).

Rs in billion, except percentages

Year ended	Gross NPA1	Net NPA	Net customer assets	% of net NPA to net customer assets2
March 31, 2022	339.20	69.61	9,160.87	0.76
March 31, 2023	311.84	51.55	10,816.41	0.48
March 31, 2024	279.62	53.78	12,720.24	0.42
March 31, 2025	241.66	55.89	14,290.76	0.39

1 Net of write-offs, interest suspense and derivatives income reversal.

2 Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.

3 All amounts have been rounded off to the nearestRs 10.0 million.

The following table sets forth, for the periods indicated, the composition of gross non-performing assets (net of writeoffs) by industry sector.

Rs in billion, except percentages

	March 31, 2024		March 31, 2025
	Amount	%	Amount	%
Retail finance1	82.89	29.6	83.76	34.7
Rural retail	42.55	15.2	43.40	18.0
Crude petroleum/refining and petrochemicals	16.88	6.0	16.91	7.0
Wholesale/retail trade	8.56	3.1	14.26	5.9
Electronics and engineering	12.40	4.4	12.49	5.2
Construction	41.13	14.7	12.12	5.0
Services - non-finance	14.79	5.3	9.76	4.0
Road, ports, telecom, urban development and other infrastructure	9.76	3.5	8.65	3.6
Iron/steel and products	4.90	1.8	4.73	2.0
Power	4.44	1.6	3.86	1.6
Mining	11.96	4.3	3.51	1.5
Gems and jewelry	2.74	1.0	2.37	1.0
Other industries2	26.62	9.5	25.84	10.5
Total	279.62	100.0	241.66	100.0

1 Includes home loans, automobile loans, commercial business loans, personal loans, credit cards and loans against securities.

2 Other industries primarily include textile, metal and metal products, shipping, food and beverages, chemical and fertilizers, services- finance, cement, drugs and pharmaceuticals, FMCG, automobiles, developer financing and manufacturing products.

3 All amounts have been rounded off to the nearestRs 10.0 million.

The gross additions to NPAs were Rs 202.11 billion in fiscal 2025 (Rs 190.27 billion in fiscal 2024). The net additions to NPAs were Rs 84.49 billion in fiscal 2025 (Rs 34.04 billion in fiscal 2024). In fiscal 2025, the Bank recovered/upgraded non-performing assets amounting to Rs 117.62 billion (Rs 156.23 billion in fiscal 2024), wrote-off non-performing assets amounting to Rs 92.71 billion (Rs 60.91 billion in fiscal 2024) and sold non-performing assets amounting to Rs 29.74 billion ( 5.35 billion in fiscal 2024). As a result, gross NPAs (net of write-offs) of the Bank decreased from Rs 279.62 billion at March 31, 2024 to Rs 241.66 billion at March 31, 2025.

Net NPAs increased from Rs 53.78 billion at March 31, 2024 to Rs 55.89 billion at March 31, 2025. The ratio of net NPAs to net customer assets decreased from 0.42% at March 31, 2024 to 0.39% at March 31, 2025. The provision coverage ratio at March 31, 2025 was 76.2% as compared to 80.3% at March 31, 2024.

At March 31, 2025, gross non-performing loans in the retail portfolio were 1.16% of gross retail loans compared to 1.23% at March 31, 2024 and net non-performing loans in the retail portfolio were 0.42% of net retail loans compared to 0.47% at March 31, 2024.

The total non-fund based outstanding to borrowers classified as non-performing was Rs 30.75 billion at March 31, 2025 (March 31, 2024: Rs 36.71 billion). The Bank held a provision of Rs 16.60 billion at March 31, 2025 (March 31, 2024: Rs 20.90 billion) against these non-fund based outstanding.

The gross outstanding loans to borrowers whose facilities have been restructured decreased from Rs 30.59 billion at March 31, 2024 to Rs 19.56 billion at March 31, 2025. The net outstanding loans to borrowers whose facilities have been restructured decreased from Rs 29.15 billion at March 31, 2024 to Rs 18.66 billion at March 31, 2025. The aggregate non-fund based outstanding to borrowers whose loans were restructured was Rs 2.50 billion at March 31, 2025 (March 31, 2024: Rs 2.48 billion). Additionally, Bank holds provision of Rs 5.53 billion on restructured accounts.

At March 31, 2025, the outstanding loans and non-fund facilities to borrowers in the corporate portfolio internally rated BB and below were Rs 28.54 billion.

For a discussion on accounting policy for classification on loans, see "Financial Statement (Schedule 17- Significant Accounting Policies) - Provision/write-offs on loans and other credit facilities".

SEGMENT INFORMATION

RBI in its Master Direction on Financial Statements - Presentation and Disclosures has stipulated specified business segments and their definitions, for the purpose of public disclosures for banks in India. The business segments as defined by RBI for standalone segmental report are Retail Banking, Wholesale Banking, Treasury and Other Banking. Additionally, Unallocated includes items such as income tax paid in advance net of provision for tax, deferred tax and provisions to the extent reckoned at entity level.

Framework for transfer pricing

All liabilities (primarily deposits) are transfer priced to a central treasury unit, which pools all funds and lends to the business units at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve requirement and directed lending requirements.

Retail banking segment

The profit before tax of the segment increased from Rs 188.49 billion in fiscal 2024 to Rs 216.21 billion in fiscal 2025 primarily due to an increase in net interest income and non-interest income, offset, in part, by an increase in operating expenses and provisions.

Wholesale banking segment

The profit before tax of the segment increased from Rs 199.72 billion in fiscal 2024 to Rs 215.64 billion in fiscal 2025 primarily due to an increase in net interest income, non-interest income and recoveries on non-performing loans, offset, in part, by an increase in operating expenses.

Treasury segment

The profit before tax of the segment increased from Rs 148.99 billion in fiscal 2024 to Rs 187.61 billion in fiscal 2025 primarily due to an increase in net interest income, non-interest income and write-back of provisions, offset, in part, by an increase in operating expenses.

Other banking segment

The profit before tax of the other banking segment was Rs 6.70 billion in fiscal 2025 as compared to Rs 7.68 billion in fiscal 2024.

Unallocated

The contingency provision was not allocated to any segment and included in unallocated.

CONSOLIDATED FINANCIALS AS PER INDIAN GAAP

The consolidated profit after tax increased from Rs 442.56 billion in fiscal 2024 to Rs 510.29 billion in fiscal 2025 primarily due to an increase in the profit of ICIG Bank and subsidiaries namely ICICI Prudential Asset Management Company, ICICI Lombard General Insurance Company, ICICI Prudential Life Insurance Company, ICICI Securities Primary Dealership and ICICI Home Finance Company, offset, in part, by decrease in the profit of ICICI Bank Canada and ICICI Bank UK.

The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 23,640.63 billion at March 31, 2024 to Rs 26,422.41 billion at March 31, 2025. Consolidated advances increased from Rs 12,607.76 billion at March 31, 2024 to Rs 14,206.64 billion at March 31, 2025.

At March 31, 2025, the Banks consolidated Tier-1 capital adequacy ratio was 15.81% as against the requirement of 9.70% and consolidated total capital adequacy ratio was 16.41% as against the requirement of 11.70%.

From April 1, 2018, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Prudential Asset Management Company and ICICI Home Finance Company have adopted Ind-AS. For preparation of consolidated financial statements of the Bank, financial statements as per Indian GAAP of these entities have been considered.

On March 24, 2025, the Bank increased its stake in ICICI Securities Limited from 74.34% to 100.00%, resulting in the entity becoming a wholly-owned subsidiary of the Bank.

ICICI Bank Canada

The core operating profit of ICICI Bank Canada decreased from CAD 100.9 million in fiscal 2024 to CAD 90.2 million in fiscal 2025 primarily due to decrease in net interest income and fee income and increase in operating expenses. The profit after tax of ICICI Bank Canada decreased from CAD 73.3 million (Rs 4.50 billion) in fiscal 2024 to CAD 71.6 million (Rs 4.35 billion) in fiscal 2025 primarily due to decrease in core operating profit, offset, in part, by increase in treasury income and other income.

The total assets decreased from CAD 5.88 billion at March 31, 2024 to CAD 5.23 billion at March 31, 2025. Loans and advances decreased from CAD 5.23 billion at March 31, 2024 to CAD 4.46 billion at March 31, 2025. The net impairment ratio increased from 0.24% at March 31, 2024 to 0.46% at March 31, 2025 primarily due to change in estimates and revision in macro-economic factors, offset, in part, by write-off of credit card portfolio. ICICI Bank Canada had a total capital adequacy ratio of 18.5% at March 31, 2025 as compared to 17.8% at March 31, 2024.

ICICI Bank UK

The core operating profit of ICICI Bank UK decreased from USD 34.5 million in fiscal 2024 to USD 33.1 million in fiscal 2025 primarily due to an increase in operating expenses, offset, in part, by an increase in fee income. Profit after tax of ICICI Bank UK has decreased marginally from USD 28.8 million (Rs 2.39 billion) in fiscal 2024 to USD 26.8 million (Rs 2.27 billion) in fiscal 2025 primarily due to decrease in core operating profit, offset, in part, by decrease in impairment provision.

Total assets increased from USD 2.21 billion at March 31, 2024 to USD 2.42 billion at March 31, 2025. Net advances increased from USD 1.04 billion at March 31, 2024 to USD 1.15 billion at March 31, 2025. The net impairment ratio decreased from 1.1% at March 31, 2024 to 0.2% at March 31, 2025. ICICI Bank UK had a total capital adequacy ratio of 22.6% at March 31, 2025 compared to 23.3% at March 31, 2024.

ICICI Prudential Life Insurance (ICICI Life)

The Annualised Premium Equivalent of ICICI Life increased by 15.7% from Rs 90.46 billion for fiscal 2024 to Rs 104.7 billion for fiscal 2025. The Value of New Business (VNB) increased by 6.4% from Rs 22.27 billion for fiscal 2024 to Rs 23.70 billion for fiscal 2025. The VNB margin decreased from 24.6% in fiscal 2024 to 22.8% in fiscal 2025. The total premium earned increased by 13.2% from Rs 432.36 billion in fiscal 2024 to Rs 489.51 billion in fiscal 2025. The total assets under management increased from Rs 2,941.40 billion at March 31, 2024 to Rs 3,093.59 billion at March 31, 2025.

Net premium earned increased by 13.2% from Rs 417.60 billion in fiscal 2024 to Rs 472.60 billion in fiscal 2025. The profit after tax increased from Rs 8.52 billion in fiscal 2024 to Rs 11.89 billion in fiscal 2025 primarily due to higher surplus emergence from legacy business, offset, in part, by increase in new business strain.

ICICI Lombard General Insurance (ICICI General)

The Gross Domestic Premium Income of ICICI General increased by 8.3% year-on-year from Rs 247.76 billion in fiscal 2024 to Rs 268.34 billion in fiscal 2025. The profit after tax increased from Rs 19.19 billion in fiscal 2024 to Rs 25.08 billion in fiscal 2025 primarily due to an increase in net earned premium and investment income, offset, in part, by increase in commission expenses and claims incurred.

ICICI Prudential Asset Management (ICICI AMC)

The profit after tax of ICICI AMC increased from Rs 18.15 billion in fiscal 2024 to Rs 26.48 billion in fiscal 2025 primarily due to an increase in income from operations and other income, offset, in part, by increase in staff cost and other administrative expense.

ICICI AMC is in the process of getting listed, subject to market conditions, requisite approvals and other considerations. This will be through proposed offer for sale by Prudential Corporation Holding Limited. The Bank intends to continue to maintain its majority shareholding in ICICI AMC.

ICICI Securities

The consolidated profit after tax of ICICI Securities increased from Rs 17.33 billion in fiscal 2024 to Rs 17.52 billion in fiscal 2025 primarily due to an increase in net interest income and fee income, offset, in part, by increase in staff cost and other administrative expenses.

ICICI Securities Primary Dealership (I-Sec PD)

The profit after tax of I-Sec PD increased from Rs 4.14 billion in fiscal 2024 to Rs 5.35 billion in fiscal 2025 primarily due to an increase in net interest income and higher trading gains.

ICICI Home Finance (ICICI HFC)

The profit after tax increased from Rs 5.32 billion in fiscal 2024 to Rs 5.56 billion in fiscal 2025 primarily due to an increase in net interest income and fee income, offset, in part, by an increase in operating expenses and provisions. Provision increased from a write back of Rs 0.10 billion in fiscal 2024 to a provision of Rs 0.55 billion in fiscal 2025. In fiscal 2024, there was provision write-back due to recovery.

Loans and advances increased from Rs 221.27 billion at March 31, 2024 to Rs 275.92 billion at March 31, 2025. Net NPAs increased from Rs 2.88 billion at March 31, 2024 to Rs 3.27 billion at March 31, 2025. During the year ended March 31, 2025, the Bank infused capital of Rs 5.00 billion.

ICICI Venture Funds Management (ICICI Venture)

The profit after tax of ICICI Venture increased from Rs 110.3 million in fiscal 2024 to Rs 150.6 million in fiscal 2025 primarily due to an increase in investment income, offset, in part, by decrease in fee income.

The Boards of ICICI AMC and ICICI Venture have approved in-principle a proposal to transfer the private equity, venture capital and real estate fund management business of ICICI Venture to ICICI AMC. ICICI Venture would continue to undertake certain advisory activities as well as manage certain residual funds. The transaction would be subject to the receipt of requisite regulatory and other approvals, completion of other procedures and entering into the necessary agreements.

The following table sets forth, for the periods and at the dates indicated, the profit/(loss) and total assets of our principal subsidiaries as per Indian GAAP.

Rs in billion

	Profit after tax1		Total assets1
Company	Fiscal 2024	Fiscal 2025	At March 31, 2024	At March 31, 2025
ICICI Bank Canada	4.50	4.35	361.00	313.05
ICICI Bank UK PLC	2.39	2.27	184.10	207.22
ICICI Prudential Life Insurance Company Limited	8.52	11.89	2,990.00	3,142.40
ICICI Lombard General Insurance Company Limited2	19.19	25.08	633.08	690.20
ICICI Prudential Asset Management Company Limited	18.15	26.48	29.18	41.28
ICICI Securities Limited (consolidated)	17.33	17.52	253.65	297.64
ICICI Securities Primary Dealership Limited	4.14	5.35	357.43	390.34
ICICI Home Finance Company Limited	5.32	5.56	235.82	295.53
ICICI Venture Funds Management Company Limited	0.11	0.15	3.08	3.01

1 Profit after tax and total assets are as per accounting policy and classification used in the consolidated financial statements and hence may differ from subsidiarys financial statements.

2 Entity ceased to be accounted as per the equity method as prescribed by Accounting Standard - 23 - "Accounting for Investments in Associates in Consolidated Financial Statements" and became subsidiary of Bank w.e.f. February 29, 2024 and consolidated as per Accounting Standard-21- "Consolidated Financial Statements".

3 All amounts have been rounded off to the nearestRs 10.0 million.

4 See also "Financials- Statement pursuant to Section 129 of the Companies Act, 2013".