ICICI Bank

ICICI Bank’s roots hark back to 1955, when ICICI was set up with the World Bank’s backing to help finance India’s industrial ambitions. In 1994, ICICI launched a commercial banking subsidiary in ICICI Bank, and by 2002, it had completed a reverse merger with the parent entity to create the integrated bank of today. From those institutional beginnings, ICICI Bank has grown into India's largest private sector bank by assets, serving tens of millions of customers across retail, small and medium enterprise (SME) and corporate banking. Its branch network continues to expand, with more than 7,500 branches nationwide.

As investors in India, we look for businesses where management quality, competitive positioning, environmental, social and governance (ESG credentials), and long-term growth drivers are aligned, and which are financially solid and operating in attractive and growing industries and sectors. 

ICICI Bank fits this description well. Under MD and CEO Sandeep Bakhshi, who took charge in 2018, ICICI is now on a more solid footing than before. After addressing elevated non-performing assets and governance concerns, ICICI has refocused on growth that is calibrated for risk. The results speak for themselves: net income increased from 68 billion rupees in March 2018 to 501 billion rupees by March 2026 despite the pandemic, which represents a compound annual growth rate of 28% over that period. ICICIT also generates a healthy return on equity, with a 5-year average of 17%, and maintains a well-capitalised balance sheet with a capital adequacy ratio of 16%. Its gross non-performing assets also improved to 1.4% of total assets as of end-March 2026. 

ICICI is a direct beneficiary of India's structural shift away from state-owned lenders towards efficient, technology driven private banks. ICICI’s loan book has been growing at around 16% year-on-year, driven by broad-based demand across retail, business banking and corporate segments. With a loan-to-deposit ratio that is the lowest among the large private sector banks, ICICI has ample room to grow further without straining its funding base. The composition of its funding is also robust with 39% of deposits coming from low cost, sticky retail current and savings accounts. Its liquidity coverage ratio is also strong at about 125% as of 31 March 2026. 

What also sets ICICI apart is the quality of its broader franchise. Beyond banking, it has built a portfolio of well run subsidiaries, including ICICI Prudential Life Insurance, ICICI Prudential Asset Management and ICICI Lombard General Insurance, which add diversified earnings streams and reinforce the ICICI’s standing as one of India’s leading financial services platforms. 

On ESG, ICICI has committed to achieving net-zero emissions by 2070 and has introduced an internal carbon pricing mechanism to guide its investment decisions. It has channelled significant lending towards renewable energy projects and green infrastructure, and it has made meaningful progress on financial inclusion through its business correspondent network. 

Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.