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ICICI Bank’s CASA ratio drops 340 bps to 36.1% as FCNR (B) deposits surge

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ICICI Bank’s CASA ratio drops 340 bps to 36.1% as FCNR (B) deposits surge

ICICI Bank’s CASA ratio drops 340 bps to 36.1% as FCNR (B) deposits surge

The shift in the balance sheet towards overseas assets also weighed on margins, as these assets earn around 1%, compared with more than 4% on domestic assets. Net interest margin (NIM) contracted about 18 basis points sequentially, while net interest income grew 18% year on year and 4% sequentially.

ICICI Bank reported higher profits for the September quarter, driven by strong loan growth, higher net interest income and lower provisions

FCNR(B) mobilisation drove loan growth of 30% and deposit growth of 27% year on year. The overseas loan book nearly tripled to Rs 1.43 trillion following deployment of FCNR(B) funds. NIM is expected to moderate further in Q3FY27 before recovering from Q4FY27 as surplus FCNR(B) liquidity is deployed. Credit costs fell to 0.20%, while JM Financial maintained its BUY rating and Rs 1,710 target price.

ICICI Bank ’s current account and savings account (CASA) ratio fell about 340 basis points sequentially to 36.1% in Q2FY27 as term deposits surged and institutional savings, particularly government department balances, declined. The bank’s deposits grew 27% year on year and 12% sequentially, supported by mobilisation of foreign currency non resident (FCNR(B)) deposits. Loans grew 30% year on year and 12% sequentially, although growth was lower after excluding FCNR(B) deployment. Advt

The shift in the balance sheet towards overseas assets also weighed on margins, as these assets earn around 1%, compared with more than 4% on domestic assets. Net interest margin (NIM) contracted about 18 basis points sequentially, while net interest income grew 18% year on year and 4% sequentially.


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