ICICI Bank — Q1 FY27 earnings call

Thank you. Good evening, everyone, and thank you all for joining us today. I know it is going to be a busy afternoon for all of you. Amidst the global uncertainties, the Indian economy continues to be resilient as reflected by high frequency indicators, backed by various initiatives taken by the policy makers. We continue to monitor the developments closely and remain focussed on our long-term strategy, aligned with India’s evolving economic landscape. At ICICI Bank, our strategic focus continues to be on growing profit before tax excluding treasury through the 360-degree customer centric approach and by serving opportunities across ecosystems and micromarkets. We continue to operate within the framework of our values to strengthen our franchise. Maintaining high standards of governance, deepening coverage and enhancing delivery capabilities with a focus on simplicity and operational resilience, are key drivers for our risk calibrated profitable growth. Page 2 of 18 Our Board has approved the financial results of ICICI Bank for the quarter ended June 30, 2026. I would like to highlight some key numbers: First, moving on to profit and capital A. Profit and capital 1. Net interest income grew by 12.7% year-on-year to ₹24,384 crore in Q1-2027 2. Net interest margin was 4.36% in Q1-2027 compared to 4.32% in Q4-2026 3. Fee income grew by 23.5% year-on-year to ₹7,286 crore in Q1-2027 4. Operating expenses grew by 10.4% year-on-year to ₹12,574 crore in Q1-2027 5. Core operating profit grew by 15.6% year-on-year to ₹20,235 crore in Q1-2027 6. Core operating profit excluding dividend from subsidiaries grew by 18.3% year- on-year to ₹19,125 crore in Q1-2027 7. Provisions (excluding provision for tax) were ₹1,260 crore in Q1-2027 8. Profit before tax excluding treasury grew by 20.9% year-on-year to ₹18,975 crore in Q1-2027 9. Profit after tax grew by 15.9% year-on-year to ₹14,805 crore in Q1-2027 10. Standalone RoE was 17.1% in Q1-2027 11. At June 30, 2026, the Bank had net worth of about ₹3.5 lakh crore. CET-1 ratio was 16.19% and total capital adequacy ratio was 16.84% at June 30, 2026 Moving on to deposit growth B. Deposit growth 1. Total period-end deposits increased by 14.0% year-on-year and 2.2% quarter-on- quarter at June 30, 2026 2. Average deposits increased by 14.0% year-on-year and 6.1% sequentially during Q1-2027 3. Average current and savings account deposits increased by 12.1% year-on-year 4. The Bank opened 97 branches during Q1-2027 and had a network of 7,608 branches and 12,190 ATMs and cash recycling machines at June 30, 2026 Moving on to loan growth C. Loan growth 1. The total loan portfolio grew by 19.6% year-on-year and 5.0% quarter-on-quarter at June 30, 2026 2. The retail loan portfolio grew by 12.0% year-on-year. Including non-fund outstanding, the retail loan portfolio was 41.1% of the total portfolio. The mortgage portfolio grew by 14.6% year-on-year. The personal loan portfolio grew by 12.9% year-on-year. The credit card portfolio declined by 1.9% year-on-year. The rural portfolio grew by 35.4% year-on-year. The business banking portfolio grew by 28.2% year-on-year. Growth in the domestic corporate portfolio was 18.5% year-on-year at June 30, 2026 3. About 71.9% of the corporate loan portfolio was rated ‘A- and above’ at June 30, 2026 Page 3 of 18 Now, moving to asset quality D. Asset Quality 1. Net NPA ratio was 0.35% at June 30, 2026 compared to 0.33% at March 31, 2026 and 0.41% at June 30, 2025 2. During Q1-2027, there were net additions to gross NPAs of ₹2,707 crore 3. Gross NPA additions were ₹5,552 crore in Q1-2027. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹2,845 crore in Q1-2027 4. Gross NPAs written off were ₹1,673 crore in Q1-2027 5. There was sale of NPAs of ₹239 crore for cash in the current quarter 6. Provisioning coverage ratio on non-performing loans was 74.7% at June 30, 2026 7. Total fund based outstanding to all borrowers under resolution as per the various extant regulations was ₹1,363 crore 8. Loans and non-fund based outstanding to performing corporate borrowers rated BB and below were ₹3,485 crore at June 30, 2026 9. The total provisions during Q1-2027 were ₹1,260 crore or 6.2% of core operating profit and 0.32% of average advances 10. The Bank continues to hold contingency provisions of ₹13,100 crore at June 30, 2026 At ICICI Bank, customers remain at the heart of every initiative. I would like to share some of the latest updates on AI that we are making to make banking simpler, safer, and more convenient. ICICI Bank has established a structured and disciplined approach to scale AI, with a focus on long-term value creation, risk management and enterprise-wide adoption. The Bank has invested in an enterprise AI platform, which serves as a secure environment for development, hosting and deployment of AI and Generative AI use cases. The Bank continues to invest in AI and Generative AI use cases across areas such as portfolio monitoring, customer onboarding, fraud detection, document extraction and summarisation, and customer servicing among others. These capabilities empower the Bank to enhance customer communication, improve efficiency, achieve faster turnaround time, support decision-making across functions and deliver seamless customer experiences. Our approach places emphasis on information security, data privacy and responsible AI governance. We have implemented a comprehensive framework of guardrails, including defining ringfenced areas for AI usage, human-in-the-loop oversight, stringent data access controls and effective model governance protocols. Parallelly, the Bank continues to invest in internal capability building, with focussed upskilling initiatives across business, digital and technology teams intended to strengthen enterprise-wide readiness and support sustainable scaling of AI capabilities across the organisation. Going forward, we will continue to operate within our strategic framework while focussing on micromarkets and ecosystems. The principles of “Fair to Customer, Fair to Bank”, “One Bank, One Team” and “Return of Capital” will guide our operations. We focus on building a culture where every employee in the Bank serves customers with humility Page 4 of 18 and upholds the values of brand ICICI. We aim to be the trusted financial services provider of choice for our customers and deliver sustainable returns to our shareholders. With this, I conclude my opening remarks. I will be happy to take your questions.

Thank you, Ritu. There are lots of questions. First of all, I will start with the NIM question that you asked. As we have reported the NII increased by about 12.7% year-on-year and about 6.1% sequentially. This quarter we had the benefit of income tax refunds which helped in the margin improvement. This was about eight basis points compared to about five basis points in the previous quarter and seven bps in the Q1 of last year. The margins in Q1 are also reflective of the benefits due to repricing of term deposits, impact of higher interest refunds, offset partially by higher interest reversal on KCC portfolio. To your point on outlook, I think the NIM trajectory would depend on a number of factors which includes, the geopolitical developments, monetary policy, liquidity, loan growth, and loan pricing. Our expectation of NIM is that, in FY27, it should be range-bound assuming no rate movements. Of course, there will be some impact on account of FCNR(B) deposit Page 5 of 18 programme and loans against FCNR deposits, which could be slightly NIM dilutive. But overall, as a bank, we would continue to look at leveraging growth, and as you have rightly pointed out, risk-calibrated profits through optimising various levers where NIM is clearly one of them. Coming to your point on slippage, I think it will be better if we compare that number in Q1’26 over Q1’27. I think there are seasonality impacts. If you look at that number, in Q1 2026 it was about ₹62 billion, which is now down to ₹55 billion. Moving on to loan growth, as you are aware, we are seeing loan growth across all the segments. In particular, corporate loans, we have seen some amount of sequential pickup. From our point of view, we continue to have active engagements with our corporate clients, and we continue to seek opportunities whichever meet within our risk and reward thresholds. During the current quarter, in particular, I think there was a little more demand on account of working capital and also, we have seen some kind of a moderation in the bond markets and equity markets which has been an opportunity for us to capitalise. So, I presume I have answered all your…

So, that is seasonal. The first one is seasonal, so, I do not think so I would like to call out anything specific on the quarter. So, it is just a question of seasonality. If you have to actually….I mean, the difference is because of Kisan Credit Cards. So, on FCNR(B), since we are talking about the subject, it is a great measure from a government point of view and, of course it is still in the early stages, and this will evolve over the couple of months. And, as you are aware, we will be tapping on the Indian diaspora. We have got a large international presence, and we will leverage all our international branches, especially those in West Asia. We have also tied up with various partners for providing leverages. We will be raising bonds. We do expect the momentum to pick up as we go along and, of course, we are committed to make this initiative of RBI, a success.

No, we cannot. It is very difficult to say at this point of time.

I think the growth is reflective of the continuous momentum of economic activity and also the impact of various policy initiatives which have been taken by the policymakers. From our point of view, we continue to see growth across segments, whether it is mortgages, rural portfolio, personal loans. We have also seen healthy growth in business banking and for this quarter, as I already mentioned, there has been a good sequential pickup in corporate loans. So, we continue to engage with the entire spectrum and wherever we get opportunities, which meet our risk thresholds and meet the pricing framework that we have, we are happy to lend. From our perspective, it is not only about the loan growth, we look at customers on a 360 basis and the overall relationship with the customer and within that framework we take various calls. So, we do have a strong balance sheet, and we will continue to look at various opportunities as they come along.

We will offer leverage based on the customer profile and whatever leverage our partners are willing to offer. So, we are not giving any specific numbers at this point of time. But rest assured, I think the customers will get a reasonable return, and from our point of view, as I did mention, we are committed to making this scheme of the government and RBI a success and we will continue to remain focussed on it. I think the rates will evolve over a period of time. As you are reading various newspaper reports of various competitive activities, from our point of view, as I mentioned, we are looking at leverage from both our partner banks as well as raising bonds from our side and which will help our customers. We do expect a decent pickup to happen over the next couple of weeks and months. Page 7 of 18

At this point of time, I do not think so there is any need. I mean, we will see how it goes along.

ECL is effective from 1st of April next year. Those are the numbers that we will start sharing from a next year basis. At this point of time, we do not see a material impact on an ongoing basis. As we mentioned in the last call, there would be some marginal impact during the transition period for which we have got adequate provisions in place. We will see. That is as far as ECL is concerned. Sorry, the second question was on?

As I mentioned, we have been engaging with our corporate customers over a long period of time and whenever we get opportunities which meet our risk and reward thresholds, we are happy to lend to them. So, there are adequate opportunities and this quarter did open up fairly good number of opportunities. So, we will continue to engage with our corporate customers and as I have always mentioned, it is not necessarily about the loan pipeline, we look at the overall 360 relationship with all customers, and in particular corporate customers, and look at the whole ecosystems and take a decision based on that. Page 8 of 18

We have not called that out at present.

Well, it will be at calibrated levels, and we will look at what is the leverage that we will provide, and as Sandeep mentioned, what our partner banks may provide and there will, of course, be some unleveraged inflows as well.

So, these are all evolving things, and this is an activity which has started effectively only towards the end of June, once all the FAQs etc. had come out. So, it will evolve over the second quarter and, of course, when we do the second quarter results, we will have a full picture.

As I said, these details would be shared in the second quarter. Maybe at some point of time, during the quarter as this evolves, because it is still very early days. Maybe some systemic numbers will start getting published, but from our perspective, it is a quarterly result angle.

Shivam, as we have always said that we do not have any targets across any segment, and in particular, corporate loan as well. We look at opportunities and, at the cost of repeating, whenever we find opportunities which meet our risk and reward and pricing thresholds, we are happy to lend, and we are focussed on customer 360 and try to access the overall ecosystem.

As I mentioned earlier, this is going to be range-bound and I think I have already responded to that question, so at the cost of repeating I will mention. We do expect it to be range-bound and of course it is going to get impacted by many things like monetary policy, liquidity, etc. It could well be a little bit diluted because of the FCNR deposits that we are going to be raising. But we will continue to leverage. As far as we are concerned, we are looking at increasing the risk-calibrated profit using all the levers which go into it and, in particular, NIM is an important part of that.

It is very difficult to make that statement. It again depends on all the things that I really talked about. At this point of time, we expect this to be range-bound.

Mayur, we do not give specifically, but this is part of our rural portfolio. A substantial part of our rural portfolio is actually gold loan. The overall rural portfolio has grown by 35% year-on-year. And, from our perspective, gold loan is just a product. We are focussed more on the customer. Whenever we get opportunities to give loans to good customers, Page 10 of 18 there are various products and options which are available. So, this is part of that overall customer-centric approach that we have been talking about.

No, it is part of the rural portfolio that we are giving, and a substantial portion of that you can attribute to gold.

Okay. Hamsini, as we have been talking about, for a bank, we look at cash flows. Our objective is to look at good quality customers, whether they come from corporate, business banking, or retail is not so important. Whichever segment gives results which meets the credit parameters, which meets the return parameters, we are happy to grow. What you are seeing is more an outcome of working with good quality customers. We do not have any particular target like what portion of our book should be corporate or retail or business banking. These numbers can well be varied. Corporate loans had not been growing in the past for various reasons which we have talked about. Recently, of course, there have been opportunities, which is a function of the increased working capital requirement by the corporate books as well as moderation, which we have seen in the equity markets as well as in the bond markets. Further, I think the corporate book also, we have to get a reasonable pricing, and it has to meet our credit thresholds. As long as these two things are met, we are happy to lend to that segment.

We will not lend if we are not comfortable.

Hamsini, in a way we answered this when I was responding to the NIM question. Overall, FCNR deposit programme would be marginally NIM dilutive. So, that is about it.

On the leverage question, it will be calibrated. We are not giving a particular number because it is also early days, yet we will see how this thing evolves. But as in all our businesses, we will be calibrated and reasonable about it. On the NIM, as Sandeep explained in detail, we expect it to be range-bound. What the impact of the FCNR (B) programme is, we will have to see. Of course, it will be an earnings accretive programme because of the growth in offshore balance sheet. There may be some marginal impact on NIM.

So, on the first question, each bank has its own timing and its own approach. We are looking at various options, and we have taken this enabling approval. So, we will see how it goes. But there is nothing specific to the timing as such. It is just the normal process of planning and decision-making that would happen in any organisation. On the acquisition financing, there is nothing specific to say. I mean, again, as in all our businesses, we would be focussed on the counterparty risk. And for counterparties with whom we are fine to do business, we would be fine to do this product as well.

No, all these things will evolve over the next two months.

We look at good quality customers. Coming from any particular segment, as long as we are able to find good quality customers across segments, we are able to lend. We really do not give a guidance on how it will shape out in the future. This quarter there were opportunities, we have been able to seize them, and we will see how it goes along in the future. So, there is nothing specific to call out. There is no change of strategy, and we will continue to scan the markets, we will continue to calibrate our risk and wherever we see opportunities, we are happy to lend. Page 13 of 18

Because these are early days in AI. As I did mention, we have calibrated our approach. We look at cost, we look at the risk, and we look at the benefits. Our final objective is to make the journeys of our customers simpler. I think there are enough opportunities out there. I do not think so there is going there is going to be any material impact on employees per se on this. This is still early days. We are focussed more on the governance side at this point of time. We are looking at long-term value creation. But we do see a fair bit of opportunities coming across and I did mention about various areas that we are focussed on. Finally, the numbers will have to get reflected in the PBT number and that is essentially that we are focussed on. The rest are actually inputs. It is just one of the levers that we are using. As you are aware, over decades we have used technology largely to benefit our customers and improve our efficiencies across. That approach will continue to remain there. I do not think so anyone can take away the importance of a human relationship and, more particularly, in a banking kind of a relationship. So, we continue to invest in our human capital as well as technology capital. At the intersection of both of it, we do expect we will be able to deliver a decent value to our customers.

Whenever new technology comes, you have to look at the cost, you have to look at the risk, and you have to look at the benefits and continue to make investments in these and calibrate your way across. So, we do not really have to be in a hurry of being a pioneer here. But I mean, over a reasonable period of time, we think we have been able to assess areas where we can actually benefit over a longer-term perspective. We remain invested in it. If the cost becomes too high, we will recalibrate our strategy. This is a continuous exercise which happens with any technology deployment and that includes for AI as well.

Aryan, I think we are focussed on increasing our PBT number per se, and for that there are multiple levers which includes NIM, fees, expenses, provisions etc. So, we look at all the levers and finally we would really like to add value to our customers. So, that is the overall framework that we have been working on, and we hope to continue to remain focused on that framework. Within that, wherever opportunities do come, we would capitalise on the same.

It is difficult to make that assessment. I know because the geopolitical developments, as you yourself have said, is uncertain. In terms of outlook, if you see, we have gone through fair bit of challenges over the last year as well. It is not that this has been the first time that we have got those challenges. But we continue to monitor our asset quality, and we will continue to closely look at all the developments which have been happening over this period of time, and work closely with our customers. So, I do not think so I can add much more to that. Anindya, in case you want to add?

Yeah. So, first of all, there is really no inching up of NPAs or anything in the ratio. Seasonally, in Q1 and Q3 of every year, we do see higher NPAs from the agri-related lending and the credit costs are slightly higher. But they even out over the rest of the year. And even in this quarter, our net credit cost is just about 30, 32 basis points of average loans. As far as the outlook is concerned, if you look at the government, RBI etc. have taken a number of measures to make sure that the Indian economy stays resilient, which is reflected in all the high-frequency indicators as well as the NPL performance across banks. I mean all the results which have come so far. How it will evolve, we will have to see, but as of today, I do not think based on the current set of information or borrower behaviour, we have any specific concern. These things are very difficult to predict. So, the only way to handle them is to maintain a strong balance sheet which we have. Page 15 of 18

So, Manju, credit and deposit growth will have to go hand in hand. I mean, there could be a quarter or so where there is a gap, but finally credit and deposit grow hand in hand. Advances also get supported by the increase in net worth and there could be some amount of opportunities on borrowings which we can take out, but over a period of time they have to balance. It is mathematically impossible for the two to not go hand in hand.

Manju, we just look at money in the bank and wherever we can, whether it is CASA or FDs and clearly the preference is within getting CASA and retail deposits. In case we need more funding, that gets topped up by wholesale deposits. That is the approach that we have been following for some time, and we will continue to remain focussed on that.

This is a pretty normal trend. So, if we look at on a year-on-year basis, you know, the retail NPL formation has actually come down, principally in the unsecured segment. Other segments were anyway quite stable. And business banking and rural are at similar levels as they were. Corporate, there is virtually no new NPL formation. Page 16 of 18

As we said, these are all evolving issues, and we will report the outcomes at the appropriate time. Nothing really to announce as of now.

Well, that is an ongoing process, you know, from the retail and SME portfolios, there is always an inflow and outflow of NPLs. On the corporate side, there are, some recoveries that also keep coming through out of the older portfolio whenever there is a settlement or some NCLT judgment and so on. So, that is there. No specific pipeline that we can talk of.

Yeah, it would, and that has been the case for the last four, five years also.

No, we do not give that breakup. Page 17 of 18

No, we do not really give any surplus SLR. I think the LCR for the quarter, which is really the operative liquidity metric, was at 124%.

124%.

128%.

No, we have not given that.

We have not given that breakup and I guess as the FCNR(B) flows start and pick up, that number will go up. Page 18 of 18

Yes. So, on the first one, I think it's partly really reflective of what has happened in the system where loan growth has picked up over the last 2-3 quarters as the various policy measures, both on the fiscal side and the monetary side have taken effect. And I think not just loan growth, but a range of other high-frequency indicators are showing positive momentum. We are sort of participating in that, and we will keep looking at opportunities as they come. And the momentum continues to be pretty good as far as we can see it. On the second question on FCNR {B), we don't really have any target or so on that we put out. I think it's a good scheme, and we will look to mobilize as much as we can, but it is very early days yet. This is something that will really play out over the next maybe 8 -10 weeks or so. So, nothing that can be said on that just now. From a cost effectiveness perspective, 6%. If you look at kind of the all-in cost after hedging the coupon, etc., it will be somewhere maybe 6.30-6.40%, which is, of course, lower than wholesale rates and it will be competitive compared to the wholesale rates. Of course, there will be an incremental loan growth opportunity also as these funds start getting deployed. Lastly, on the international branches growth, even if you look at the previous quarter, we had a decent momentum. We have been seen both increase in the trade-related book as well as some borrowing by the overseas operations of Indian well-rated companies, and we have been participating in that. As we go forward, there will be some amount of loans against FCNR deposits that will also keep adding to the loan book overseas.

That's something that keeps happening on an ongoing basis. Overall, the NIM reflects the healthy funding franchise, our disciplined approach consistently on both deposit and loan pricing as well as our management of the government securities book. That is what really held the NIM up. And as for other factors, there is always some amount of collection less or more in each quarter. There was interest on income tax refund, which we have as always specifically called out. But even if adjusting for that, the NIM is stable both on a year-on-year and on a quarter-on-quarter basis. K11nal Shah: Yes. So, question was more on yield because the growth is also coming in from the corporate and all, okay? So, to that extent, yields are still sustained. So that was the question. And secondly, on the agri, so now maybe larger part of the regularization, we have been working all through and would have been interacting with the regulator as well. So how is the approach? And when do we see the recoveries coming through or maybe the reversals of the provision? Is it expected to come through in the second quarter or maybe it might take some time and we should see it more towards the end of the fiscal year?

I wouldn't really be able to comment on the timing. But yes, we have been working on the required remediation of the portfolio. We just want to make sure that whatever we have done is correct and signed off and validated before we discuss a write-back of the provision. So, we are in the process and will hopefully work it out over the next few months, but I don't want to give a timeline.

Yes, very much so. It's a granular portfolio. We want to make sure that we are getting it right, and then we want to get it appropriately validated, the work that the field teams have done, and that process is on.

So, as I briefly mentioned in our opening remarks, there is some amount of a base effect. Last year, the absolute fee income in Ql was sequentially lower over the preceding quarters, so there is some amount of base effect as well. And I think other than that, it really reflects the underlying business momentum. We've seen growth pick up across all business segments, retail and corporate, while business banking has sustained. We would continue to focus on the fee income line item as we go forward.

There are a lot of moving parts to it because it really depends to some extent on systemic liquidity and interest rates where, for example, in the month of May, we had seen a lot of hardening of wholesale rates. That has come off substantially. Based on current conditions and assuming no policy rate movements, I would say it should be range bound. As we go along, we'll also have to factor in sort of the impact of the FCNR deposit mobilization and the related leverage where there could be some impact on margins, but that is something that will happen over a period of time. In any case, the program itself has significant advantages. So that's something we'll see. But other things being equal, I would still say range bound.

I think we have just about started that whole process. We'll have to wait and see. It will be a combination of unleveraged deposits, the deposits where we are providing leverage and there may be some fund-raising requirement at our end as well. And there will be other banks providing leverage for deposits into us. As I said, the best guess we have now is that there could be some impact on the NIM, particularly because, as I mentioned in response to Mahrukh's question, the balance sheet of the international branches will expand materially if we indeed are able to mobilize a significant amount. So that will happen and we'll see it as it comes. But from an earnings perspective, it is quite positive.

Most of you would all be aware that in one particular case, there was an NCLT judgment, where the company was taken over. So that recovery did come through this quarter. This is an asset that had been previously sold to NARCL. And then there are some other things in the regular course, but from a credit cost perspective, the reported of 32 basis points, and as we always say, a more normalised level, adjusting for chunky recoveries would be around 50 bps, and that is where it stays.

On the net worth, we will not really have any impact. Our assessment based on whatever proforma estimates we have done based on the existing position of the balance sheet or the portfolio is that whatever impact is there will be well absorbed by our provisioning buffers. Of course, it always depends on what is the situation of the portfolio at that point in time. On an ongoing basis, the fact that we will be providing for Stage 2 will obviously, that is a provision that is currently not made by any bank. So that will result in higher provisions, which will be partly offset by lower provisions on the Stage 3, where currently we follow this percentage-based approach and there it will be much more on a predicted loss kind of approach.

No, very difficult to make that estimate because we then actually have to run it based on the new ECL guidelines. We have some assessment of the transition impact. The ongoing impact is something that will come, but it will be a uniform impact across the sector adjusted for portfolio composition.

Thank you very much.

We are monitoring this portfolio very closely and factoring in some of these West Asia, etcetera, into our customer selection and onboarding. But fundamentally, we feel quite comfortable with the portfolio and growing it. The NPL performance is also pretty good and stable. And we will keep adjusting it as we go along. But it is a granular portfolio, reasonably secured portfolio, and we are quite comfortable growing it.

When applications come under that, we are assessing and going ahead, I mean, it is a scheme that has been created for the benefit of the customers. We are quite open to it. But we are also adding new customers and growing with existing customers in line with their business.

Average loan growth on a year-on-year basis will be somewhat lower, but as I mentioned earlier, higher loan growth this quarter is reflective of the increase in loan growth in the system and both the banks and the system is off the base of Q1 of last year. So, there could be some base effect, but incremental momentum continues to be pretty strong.

The way we look at it is what is our existing market share and what is the franchise capable of delivering. Our belief is that our franchise should deliver more. And there is always some set of competition that you have to deal with. But I think there is enough business for us to do within our frameworks, and we keep calibrating based on sort of the interest rate environment and the competitive environment. We will keep looking at that as we go along, but that is not sort of something that is holding us back currently.

It's a large market and there is enough for us to do. We are, for example, some of the rates that get quoted, we are not doing that kind of business, but there is enough other business where we are comfortable with risk-adjusted returns on a customer basis, which we do.

No. I did not say that it is disbursement linked. I just said that overall business volumes and business growth has gone up. So that will partly reflect in it, particularly the increase, for example, on the corporate side, continued growth on the business banking side and the pickup in retail. Our fee income has a range of components, cards, as you mentioned, the loan processing fees, transaction banking and trade, forex and derivatives. There is all those elements, the deposit- linked fees, all those have seen a growth. And at different times, there may be more opportunity in one segment than the other, which we have to keep making sure that we are there across the opportunity spectrum within our kind of risk framework, which is what we do. And also, as I said, there is some base effect last year because last year, the Ql was indeed not a good quarter from a fee perspective.

If you look at it sequentially, the increase in the fee line June quarter over March quarter is about Rs. 5 billion or so.

Opportunity is there across the board. As you said, maybe cards is one area where fee growth is less than what we would want it to be, although at a PBT level, the business has done very well because of the reduction in credit costs. But there is opportunity across the board.

PL has picked up quite a bit actually, 12% year-on-year and 4% sequential growth. I think it's after a long time that we are seeing those kinds of numbers. Cards, the revolver rates are lower. So that is impacting the book growth. But we'll see how to optimize that as we go along.

I don't want to really give an outlook per se. We had gone down to a declining portfolio from that, we are at 4% sequential growth. I don't see anything today that will reduce growth, but we will take it as it comes.

No, I think I answered that. We are getting some inquiries, and we are doing some of that. It's part of the increase in the business banking book. So that is something that has been done for the benefit of the customer and wherever it is appropriate, we are doing it.

See, the corporates were always doing what they were doing. They are doing capex to the extent that they were doing capex. But certainly, bond markets this quarter have not favoured the corporate sector. If you see, we have a reasonable increase in our NBFC portfolio as well. So, part of it is a shift from bond markets, part of it is working capital utilization, part of it may be corporates taking on some borrowings and just maintaining some liquidity buffers as they also want to be sort of have greater resilience in this uncertain environment. And to the extent that they are investing or were investing, that also continues, maybe the source of financing has shifted a little.

I'm hesitant to make a comment which can get extrapolated at a system level. We are dealing with our customer base and catering to their needs. The customers are doing a range of things, and they were doing and are doing capex and new investments as well. But obviously, in addition to that, some shift in funding mix is also there. And this quarter, in particular, we saw a healthy pipeline at reasonable rates. So that is what has led to this growth.

No, we have not seen any change actually. In terms of inflows into the savings, etc., they are quite stable. We've not seen any change. And as you can see, the performance of the retail portfolio has only improved. In fact, additions have come off and in particular, if you look at it on a year-on-year basis, unsecured additions have come off. I think things are quite stable from that perspective.

Thank you very much for making time for the call, and we'll take any other questions that you have as we interact going forward. Thank you.