Moody's affirms ICICI Bank ratings, outlook stable

Moody's Ratings has affirmed ICICI Bank's Baa3 long-term deposit ratings, baa3 Baseline Credit Assessment (BCA), and Adjusted BCA, maintaining a stable outlook. This decision reflects expectations that the bank's diversified loan portfolio and above-industry-average profitability will support internal capital generation and strong solvency. The bank's robust retail franchise, access to low-cost deposits, and substantial holdings of liquid government securities are also noted as key strengths in funding and liquidity.

As of September 2025, ICICI Bank's return on assets for the preceding six months stood at 2%, surpassing the industry average of 1.4% for fiscal 2025. The gross nonperforming loan (NPL) ratio was 1.6%, better than the industry average of 2.3% as of March 2025. The bank's consolidated Common Equity Tier 1 ratio was 16.1%, inclusive of year-to-date profits, reinforcing its strong capitalization.

ICICI Bank reported consolidated assets of INR 26.9 trillion as of September 30, 2025. An upgrade to the bank's deposit ratings and BCA is unlikely as they are currently at the same level as India's sovereign rating. A downgrade could occur if the bank's tangible common equity/risk-weighted assets ratio falls below 12%, problem loans/gross loans exceed 6%, and net income/tangible assets drops below 0.4%.