管理層發言
Ladies and gentlemen, good day, and welcome to the Q1 FY '26 Earnings Conference Call of ICICI Bank. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Bakhshi, Managing Director and Chief Executive Officer of ICICI Bank. Thank you, and over to you, sir.
Thank you. Good evening to all of you, and welcome to the ICICI Bank earnings call to discuss the results for Q1 of FY '26. Joining us today on this call are Sandeep Batra, Rakesh, Ajay, Anindya, and Abhinek. At ICICI Bank, our strategic focus continues to be on growing profit before tax, excluding treasury to the 360-degree customer-centric approach and by serving opportunities across ecosystems and micro markets. 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. The profit before tax, excluding treasury grew by 11.4% year-on-year to INR 156.90 billion in this quarter. The core operating profit increased by 13.6% year-on-year to INR 175.05 billion in this quarter. The profit after tax grew by 15.5% year-on-year to INR 127.68 billion in this quarter. Total deposits grew by 12.8% year-on-year and were flat sequentially at June 30, 2025. During the quarter, average deposits grew by 11.2% year-on-year and 3.1% sequentially. Average current and savings account deposits grew by 8.7% year-on-year and 3.9% sequentially. The bank's average liquidity coverage ratio for the quarter was about 128%. The domestic loan portfolio grew by 12% year-on-year and 1.5% sequentially at June 30, 2025. The retail loan portfolio grew by 6.9% year-on-year and 0.5% sequentially. Including non-fund-based outstanding, the retail portfolio was 43.2% of the total portfolio. The rural portfolio declined by 0.4% year-on-year and 1.5% sequentially. The business banking portfolio grew by 29.7% year-on-year and 3.7% sequentially. The domestic corporate portfolio grew by 7.5% year-on-year and declined by 1.4% sequentially. The overall loan portfolio, including the international branches portfolio grew by 11.5% year-on-year and 1.7% sequentially at June 30, 2025. The overseas loan portfolio was about 2.4% of the overall loan book at June 30, 2025. The net NPA ratio was 0.41% at June 30, 2025, compared to 0.43% at June 30, 2024. During the quarter, there were net additions of INR 30.34 billion to gross NPAs, excluding write-offs and sales. The total provisions during the quarter were INR 18.15 billion or 10.4% of core operating profit and 0.53% of average advances. The provisioning coverage ratio on nonperforming loans was 75.3% at June 30, 2025. In addition, the bank continues to hold contingency provisions of INR 131 billion or about 1% of total advances at June 30, 2025. The capital position of the bank continued to be strong with a CET1 ratio of 16.31% and total capital adequacy ratio of 16.97% at June 30, 2025, including profits for Q1 for financial year '26. Looking ahead, we see many opportunities to drive risk-calibrated profitable growth and grow market share across key segments. We remain focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to our shareholders. I now hand the call over to Anindya.
Thank you, Sandeep. I will talk about loan growth, credit quality, P&L details and the performance of subsidiaries. Sandeep covered the loan growth across various segments. Coming to the growth across retail products. The mortgage portfolio grew by 10.3% year-on-year and 1.9% sequentially. Auto loans grew by 2.2% year-on-year and declined by 0.7% sequentially. The commercial vehicles and equipment portfolio grew by 5.9% year-on-year and 1.1% sequentially. Personal loans grew by 1.4% year-on-year and declined by 1.3% sequentially. The credit card portfolio grew by 1.5% year-on-year and declined by 5.4% sequentially. The personal loans and credit card portfolio were 8.8% and 4% of the overall loan book, respectively at June 30, 2025. Within the corporate portfolio, the total outstanding to NBFCs and HFCs was INR 874.17 billion at June 30, 2025, compared to INR 918.38 billion at March 31, 2025. The total outstanding to NBFCs and HFCs were about 6.4% of our advances at June 30, 2025. The builder portfolio, including construction finance, lease rental discounting, term loans and working capital, was INR 628.33 billion at June 30, 2025, compared to INR 616.24 billion at March 31, 2025. The builder portfolio was about 4.6% of our total loan portfolio. Our portfolio largely comprises well-established builders, and this is also reflected in the sequential increase in the portfolio. About 1.9% of the builder portfolio at June 30, 2025, was either rated BB and below internally or was classified as nonperforming. On credit quality, the gross NPA additions were INR 62.45 billion in the current quarter compared to INR 59.16 billion in Q1 of last year. There were gross NPA additions of about INR 7.67 billion from the Kisan credit card portfolio in the current quarter. We typically see higher NPA additions from the Kisan credit card portfolio in the first and third quarter of a fiscal year. Recoveries and upgrades from gross NPAs, excluding write-offs and sales were INR 32.11 billion in the current quarter compared to INR 32.92 billion in Q1 of last year. The net additions to gross NPAs were INR 30.34 billion in the current quarter compared to INR 26.24 billion in Q1 of last year. The gross NPA additions from the retail and rural portfolios were INR 51.93 billion in the current quarter compared to INR 52.04 billion in Q1 of last year. These include the KCC NPAs mentioned earlier. Recoveries and upgrades from the retail and rural portfolios were INR 25.25 billion in the current quarter compared to INR 25.32 billion in Q1 of last year. The net additions to gross NPAs in the retail and rural portfolio were INR 26.68 billion in the current quarter compared to INR 26.72 billion in Q1 of last year. The gross NPA additions from the corporate and business banking portfolios were INR 10.52 billion in the current quarter compared to INR 7.12 billion in Q1 of last year. Recoveries and upgrades from the corporate and business banking portfolios were INR 6.86 billion in the current quarter compared to INR 7.6 billion in Q1 of last year. There were thus net additions to gross NPAs of INR 3.66 billion in the current quarter in the corporate and business banking portfolios compared to net deletion of INR 0.48 billion in Q1 of last year. The gross NPAs written off during the quarter were INR 23.59 billion. Further, there was sale of NPAs of INR 1.08 billion in the current quarter, compared to INR 1.14 billion in Q1 of last year. The sale of NPA includes about INR 0.6 billion in cash in the current quarter. The non-fund based outstanding to borrowers classified as nonperforming was INR 32.98 billion as of June 30, 2025, compared to INR 30.75 billion as of March 31, 2025, and INR 35.43 billion as of June 30, 2024. The total fund-based outstanding towards standard borrowers under resolution as per various guidelines declined to INR 17.88 billion or about 0.1% of the total loan portfolio at June 30, 2025, from INR 19.56 billion at March 31, 2025, and INR 27.35 billion at June 30, 2024. Of the total fund-based outstanding under resolution at June 30, 2025, INR 16.22 billion was from the retail and rural portfolios and INR 1.66 billion was from the corporate and business banking portfolios. The loans and non-fund-based outstanding to performing corporate borrowers rated BB and below were INR 29.95 billion at June 30, 2025, compared to INR 28.54 billion at March 31, 2025, and INR 41.64 billion at June 30, 2024. This portfolio was about 0.2% of our advances at June 30, 2025. Other than 2 accounts, the maximum single borrower outstanding in the BB and below portfolio was less than INR 5 billion at June 30, 2025. At the end of June, the total provisions other than specific provisions on fund-based outstanding to borrowers classified as nonperforming were INR 226.64 billion or 1.7% of loans. This includes the contingency provisions of INR 131 billion as well as general provision on standard assets, provisions held for non-fund-based outstanding to borrowers classified as nonperforming, and fund and non-fund-based outstanding to standard borrowers under resolution and the BB and below portfolio. Moving on to the P&L details. Net interest income increased by 10.6% year-on-year to INR 216.35 billion in this quarter. The net interest margin was 4.34% in this quarter compared to 4.41% in the previous quarter and 4.36% in Q1 of last year. From Q1 of 2026, the bank has changed its convention of computation of NIM and other return ratios from actual number of days to a number of months. While the full year NIM would remain unchanged, the revised convention eliminates the quarter-to-quarter volatility in NIM computation due to difference in the number of days. The impact on reported ratios in this quarter was negligible. The impact of interest on income tax refund was about 7 basis points in the current quarter compared to about 2 basis points in the previous quarter and nil in Q1 of last year. Of the total domestic loans, interest rates on about 53% of the loans are linked to the repo rate, 15% to MCLR and other older benchmarks and 1% to other external benchmarks. The remaining 31% of loans have fixed interest rates. In comparison to the first quarter, the impact of transmission of repo rate cuts on external benchmark linked loans is expected to be higher in the second quarter. This impact would be partially offset by reduction in savings account interest rates in May and June and the gradual repricing of term deposits. The domestic NIM was 4.4% in this quarter compared to 4.48% in the previous quarter and 4.44% in Q1 of last year. The cost of deposits was 4.85% in this quarter compared to 5% in the previous quarter and 4.84% in Q1 of last year. Noninterest income, excluding treasury grew by 13.7% year-on-year to INR 72.64 billion in Q1 of FY 2026. Fee income increased by 7.5% year-on-year to INR 59 billion in this quarter. Fees from retail, rural, and business banking customers constituted about 79% of the total fees in this quarter. Dividend income from subsidiaries was INR 13.36 billion in this quarter compared to INR 8.94 billion in Q1 of last year. The year-on-year increase in dividend income was primarily due to higher dividend from ICICI Securities, ICICI AMC, and ICICI General and receipt of dividend from ICICI Securities primary dealership in the current quarter compared to Q2 of last year. On costs, the bank's operating expenses increased by 8.2% year-on-year in this quarter compared to 8.3% in FY 2025. Employee expenses increased by 8.5% year-on-year in this quarter, reflecting mainly the impact of annual increments and promotions that take place during the first quarter of every fiscal year. Nonemployee expenses increased by 8% year-on-year in this quarter. Our branch count has increased by 83 in the first quarter, and we had 7,066 branches as of June 30, 2025. The technology expenses were about 10.7% of our operating expenses in this quarter. We continue to enhance the use of technology in our operations to provide simplified solutions to customers and make investments in our digital channels. We continue to further strengthen system resilience and simplify our process. The total provisions during the quarter were INR 18.15 billion as compared to the provisions of INR 13.32 billion in Q1 of last year. Provisions in Q1 of last year included the impact of release of AIF-related provisions of INR 3.89 billion. The provisions during the quarter were 10.4% of core operating profit and 0.53% of average advances. Adjusting for the seasonality of KCC provisioning, which occurs only in Q1 and Q3, the credit cost to advance this would be about 50 basis points. The profit before tax, excluding treasury grew by 11.4% year-on-year to INR 156.9 billion in Q1 of this year. Treasury gains were INR 12.41 billion in Q1 of the current year as compared to INR 6.13 billion in Q1 of the previous year, primarily reflecting realized and mark-to-market gains in fixed income securities and equities. The tax expense was INR 41.63 billion in this quarter compared to INR 36.34 billion in the corresponding quarter last year. The profit after tax grew by 15.5% year-on-year to INR 127.68 billion in this quarter. The consolidated profit after tax grew by 15.9% year-on-year to INR 135.58 billion in this quarter. The details of the financial performance of key subsidiaries are covered in Slides 34 to 35 and 54 to 59 in the investor presentation. The annualized premium equivalent of ICICI Life was INR 18.64 billion in Q1 2026 compared to INR 19.63 billion in Q1 2025. The value of new business was INR 4.57 billion in Q1 2026 compared to INR 4.72 billion in Q1 2025. The value of new business margin was 24.5% in Q1 2026 compared to 22.8% in FY 2025. The profit after tax of ICICI Life was INR 3.02 billion in Q1 2026 compared to INR 2.25 billion in Q1 2025. Gross direct premium income of ICICI General increased to INR 77.35 billion in Q1 2026 from INR 76.88 billion in Q1 2025. The combined ratio stood at 102.9% in Q1 2026 compared to 102.3% in Q1 2025. The profit after tax increased to INR 7.47 billion in this quarter from INR 5.8 billion in Q1 of last year. With effect from October 1, 2024, long-term products are accounted on 1/n basis, as mandated by IRDAI, hence Q1 numbers are not fully comparable with prior periods. The profit after tax of ICICI AMC as per Ind AS was INR 7.82 billion in this quarter. The profit after tax of ICICI Securities as per Ind AS on a consolidated basis was INR 3.91 billion in this quarter compared to INR 5.27 billion in Q1 of last year. ICICI Bank Canada had a profit after tax of CAD 7.8 million in this quarter compared to CAD 20.3 million in Q1 last year. ICICI Bank U.K. had a profit after tax of USD 5.9 million in this quarter compared to USD 7.7 million in Q1 of last year. As per Ind AS, ICICI Home Finance had a profit after tax of INR 2.14 billion in the current quarter compared to INR 1.17 billion in Q1 of last year. With this, we conclude our opening remarks, and we will now be happy to take your questions.
分析師問答
We'll take our first question from Mahrukh Adajania from Nuvama Wealth Management.
My first question is about margins related to the change in method. The fourth quarter typically shows the greatest positive effect from the old method, so even after adjusting for the tax refund and interest on that refund, your margin decline seems to be only about 4 to 5 basis points. Is that correct? It would also be helpful if you could provide a like-for-like comparison of margins for the fourth quarter. My second question is about growth, which is obviously a challenge for the sector as not much seems to be growing apart from low-yield corporate loans. There's significant competition in home loans. When do you expect growth to recover, and what do you anticipate for the loan growth of ICICI? Would mid-teens still be achievable? Those are my questions.
Thanks, Mahrukh. Regarding the reported margin for Q4, it would have been slightly lower, so the range you mentioned is likely accurate. However, the significant spike from Q3 to Q4 will not be mirrored this year; we expect a steadier distribution of reported margin throughout the year. On the growth front, as you know, several global events in the first quarter have impacted sentiment. Nevertheless, the considerable monetary easing that began in Q4 and continued into Q1 should have a positive effect moving forward. Therefore, it’s too early to make a definitive statement, and we will need to wait for another quarter to better assess how things will progress.
We'll take our next question from the line of Kunal Shah from Citigroup.
So sorry, again to touch upon margins. So fair to say maybe the unwinding, which was expected to come in, in the first quarter, maybe because of this the benefit, that wouldn't have been there in this particular quarter. Otherwise, any which way was like we are comparing 4.41 to 4.34. So maybe like 4, 5 basis points of unwinding is not really there in this quarter. And thereafter, maybe adjusting for interest on income tax refund, we have seen like 14 bps kind of a decline in NIMs on a quarter-on-quarter basis. So would that be correct?
No, that would not be correct because there is no unwinding in the first quarter. The NIM typically declines from the Q4 to Q1 because of the higher number of days in Q1. And then there is a pickup again in Q4. So the Q4 NIM, if we had used an equal month basis would have been lower than the reported number of 4.41. But I think this is what the wave — that's why even in our previous calls, we have focused attention on the previous year's full year NIM of 4.3% as the anchor for further discussion. But we thought that it would also be good to eliminate that one confusion point.
Yes. So only thing was maybe unwinding, I just meant to say that the benefit which was there in the fourth quarter that have been relatively lower in the first quarter by, say, 4, 5 basis points, which goes away, which is not there in the computation now.
No. This — the method — if you look at, for example, the reported margins for this year and on the new basis and Q1 last year on the old basis are almost the same. There is no real impact. That impact largely comes later in the year. So the first quarter is not impacted at all. If you're looking at a sequential analysis, then on a like-to-like basis, the reported margin for Q4 would have been a little bit lower.
Yes. So would that have been like 8, 9 basis points, how much it would have been lower, yes?
No, I think I answered the range that Mahrukh quoted was probably the correct range.
Okay. Got it. Perfect. Yes. With respect to credit costs, we have indicated that they would normalize gradually. This quarter will include KCC slippages, but aside from that, when we examine the credit costs, have we reached a point of normalization, or is there still a gradual adjustment needed from the current levels when accounting for KCC? We are already observing some impact from KCC. Should we anticipate further normalization, or are we seeing a more stable credit cost now?
I think we have always indicated that the current underlying level would be around 50 basis points. Could that increase? It’s possible, but I don’t anticipate any significant changes.
Next question is from the line of Harsh Modi from JPMorgan Life Insurance.
Thank you for that. I have a couple of questions. First, I've noticed that the mix of corporate creditors has shifted over the past few years, with the AA- mix decreasing and the BBB- mix increasing. Is this part of your strategy to optimize RORWA? Are there any associated risks? My second question pertains to business banking, where the numbers look very strong. What contributed to this success? Looking ahead, how do you foresee the credit growth mix evolving over the next couple of years? Any detailed insights would be appreciated.
In response to the first question, the decrease in the share of very high-rated credits is influenced by both demand and pricing factors. Previously, when liquidity was high, we might have accumulated some portfolios that have since decreased as funding conditions tightened. Currently, overall credit growth has slowed down, and there is significant price competition in this segment. We evaluate this segment, like all corporate borrowers, using a Customer 360 approach to assess our overall relationship with each borrower. If lending is appropriate within that context, we will proceed. Regarding the increase in the proportion of higher-rated credits, we are confident in the A bucket, as it strikes a good balance of risk and reward, despite facing competition in these segments. We maintain strict controls on lower-rated origins, specifically BBB and below, ensuring a calibrated approach. Overall, the decline in very high-rated credits primarily stems from demand and pricing changes. As for your second question about business banking, we've discussed this in prior calls. In summary, our success can be attributed to our distribution methods, processes, and the digital tools we provide customers. Additionally, we maintain a strong focus on credit monitoring and disciplined portfolio management.
All right. Sorry, can I have just one more question on the liability side?
Sorry, the last part of your question was around mix going forward. I think, based on the visibility and the market share opportunity, one would expect the business banking piece to grow faster than the overall loan book, and therefore, that proportion should gradually go up.
Right. And one more on the liability side. It seems you have been gaining market share on CASA deposits nationwide. Now with rate cuts, how do you see behavior changing? Any early signs of higher degree of competition, more preponderance of sweep accounts, and so on and so forth. So do you see market share stabilizing? Or do you still see CASA market share growing for the bank over the next, let's say, 12 months period?
I believe that the current account largely depends on our involvement in the transaction flows of corporates, businesses, and capital market participants. The savings account is mainly a result of being the primary or transacting bank for retail customers. This is how funds move in and out, with some level of float remaining in those accounts. I don’t perceive any significant changes in the competitive landscape. In the last quarter, the rate changes from major banks have been relatively consistent. Given the decrease in overall interest rates and the current policy environment, we will continue to concentrate on this segment by enhancing customer acquisition, increasing our share of customers' finances, and working to be their primary bank. We expect to maintain a positive performance moving forward.
Next question is from the line of Nitin Aggarwal from Motilal Oswal.
Congrats on another set of good numbers. I have 3 questions. One is around the decline in cost of deposits that we have reported in the quarter. So it seems fairly sharp 15 basis point decline. So is it like the unwinding that we have done in respect to the high-cost deposits that has resulted in this kind of decline, and has it played out fully? Or will this continue along with the benefits in Q2 also?
There is no unwinding. The effect of the equal month convention on the reported net interest margin for the quarter and other ratios is minimal. Regarding the decline in deposit costs, it is primarily due to the reduction in the savings account deposit rate, which saw a significant cut of 25 basis points in April, benefiting the entire quarter. Additionally, there was another reduction in May for higher value deposits. Moreover, the retail term deposits are gradually repricing at incremental rates. During the quarter, we also observed a reasonable decrease in our wholesale deposit book, thanks to robust growth in current account savings accounts and retail term deposits, along with the high liquidity we maintained. The reduction in the wholesale deposit book has also contributed to lowering funding costs.
Yes, I was referring to the wholesale deposit unwinding we have done. Has the benefit of that fully played out in this quarter, or do you expect it to continue?
I find it challenging to provide a definite answer. We haven't been aggressively raising wholesale deposits. As I mentioned in my opening remarks, we can expect to see a gradual benefit from deposit cost repricing in Q2. However, there will also be a more significant impact from the 50 basis points repo cut in June.
Right. And second question, Anindya, is around the unsecured retail growth. So how are we looking at that segment? Because while we have been able to deliver healthy growth, but because of the systemic softness in the overall credit demand, the growth overall has come down as well. And our unsecured retail segments have not been able to contribute as you know. So how are we seeing those segments given the asset quality has seen some stabilization? So how do we look at those segments in terms of their contribution going forward?
I think clearly, we can do more on both personal loans and credit cards. In personal loans, I think as we may have commented in the past, we are quite comfortable with the quality of origination done over the last 12 to 15 months. So I think we can see volumes pick up and see some better growth there. And similarly, on cards also going forward, maybe some better customer acquisition is also something we can see. So I think we are quite focused on both the segments. We could do better there than what we've done in Q1.
In terms of business banking, this segment has been experiencing strong growth and yielding positive results. However, we need to ensure that we do not encounter any challenges related to asset quality, especially given the rapid growth from a solid foundation. What steps are we taking to avoid potential asset quality issues in this segment? We've previously discussed tightening underwriting standards in recent quarters. Are we continuously monitoring this as the environment for these segments becomes more challenging?
As I said, we monitor the portfolio continuously. Just to put the numbers in context, if you look at the gross NPA additions to the corporate and business banking portfolios in the quarter were about INR 10 billion on an aggregate portfolio of about INR 5.6 trillion. The business banking portfolio alone is now about INR 2.7 trillion. So I think the current sort of credit behavior and asset quality is extremely benign. And we will probably see some increase going forward, but credit costs today are negligible. So they may go up slightly. But the portfolio is granular and tightly monitored.
We'll take our next question from the line of M.B. Mahesh from Kotak Securities.
Anindya, regarding the question on margins.
I'm sorry to interrupt. Can you use your handset mode, please? Your line is not very clear.
Anindya, regarding your question on margins and the yield side, given the 25 basis point drop, can you estimate how much of the repo rate cuts have been reflected in the loan book?
We have not quantified it. If you look at the February cut, I think it would have largely flowed through almost entirely. The April cut also would have substantially flown through. Maybe we have a little bit more to happen in Q3. The June cut, I would say, has not flown through much and most of that will come through in Q2.
And sorry, just to answer the previous question, you said that the bulk of the benefit on the cost of deposit side has come from the savings account, given that the contribution of wholesale is fairly small.
You can calculate that a 25 basis point reduction on the portfolio would have provided a reasonable benefit.
And the second question on the demand environment. When you say that you're ready to accelerate portfolio is good, is it a question of demand being an issue on the ground? Or is it a problem with pricing?
I think it's a part maybe there is some pricing, but probably we also need to focus a little more on the distribution and the throughput. So I wouldn't say that in some of these segments, it is purely demand. If you're talking about PL and cards. In other segments, of course, overall loan growth in the system is what it is. So that reflects some softness in demand.
Perfect. And last one, one question. Are you allowed to restructure any standard assets and let's say, it's in a default book in the SMA-0, 1 and 2, are you allowed to restructure it and classify it as standard.
No.
Next question is from the line of Rikin Shah from IIFL Capital. Sorry, we've lost the connection. We'll take the next question from the line of Piran Engineer from CLSA.
Congrats on the quarter. So just firstly a couple of clarifications on previous questions. So Nitin's question on 15 bps reduction in cost of deposits, that also includes the number of days thing right? Like core deposit cost would not have gone down 15 bps, correct Q-o-Q?
As I mentioned, the deposit margins for the first quarter would show a negligible difference, as noted in our opening remarks. Compared to the fourth quarter, the decline in margins would have been somewhat lower on a comparable basis.
But then, Anindya, how do I think about it in the context of you versus peers where your margins are down, say, 5, 6 bps, core NIM. HDFC, Axis are down 12, 13 bps. Is it just a more delayed pass-through of the repo rate cuts? Is that how I should simplistically put it? Because all of you all have cut rates at approximately the same time and by the same amount.
I can't really comment on others. To start, we've always mentioned that we need to consider last year's full-year margin of 4.3% and the repo rate cut, which will exert some pressure on that. In the first quarter, we benefited upfront from the savings deposit rate cut and also gained 6 to 7 basis points from interest on income tax refunds. As we move into Q2, the full impact of the 50 basis point repo cut from June will take effect. We'll also see ongoing repricing of term deposits along with the advantages of the savings rate cut that occurred in May and June. Looking ahead to Q3, unless there's a change in policy, the benefits of the CRR cut will also come into play.
Okay. Okay. That's helpful. Just secondly, if I have to compare retail term deposits today versus a wholesale term deposits today and even adjusted for the outflow rate and the LCR competition. Would wholesale rates be similar to TD rates now or lower?
No, lower. They would be lower.
It will be lower, right? So then why are we trimming wholesale deposits when it's lower? That's what I look at.
I believe it relates to the overall liquidity we currently have, considering both the CASA and term deposits. We've reduced the higher-rate deposits that were previously raised. If we receive deposits at the current rates we are offering, we will accept them.
And just lastly, regarding vehicle loans, our growth has decreased to 2% or 3%. Demand has certainly slowed down, but not to an extreme extent. Is this mainly due to our cautious approach on pricing, which is why we are opting not to grow in this area?
So I think price competition has always been a part of it. And of course, the underlying asset class also is not growing at that pace.
Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to management for closing comments. Over to you, sir.
Thank you very much for taking time on a Saturday, and we are happy to clear any other doubts offline. Thank you.
Thank you. On behalf of ICICI Bank, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.