ICICI Bank Limited (IBN): Business Model Canvas [Dec-2025 Updated]

You're digging into the Business Model Canvas for ICICI Bank Limited, and honestly, the story that jumps out when you look at the FY2025 figures isn't just size, but precision: they are successfully scaling digital while keeping asset quality rock solid. Think about it: they manage a huge deposit base of ₹16,103.48 billion, yet their Net NPA sits at a lean 0.39%, all while their iMobile app is buzzing with 558 million transactions. To really grasp how they balance that massive retail reach with a 4.32% Net Interest Margin and a 16.55% Capital Adequacy Ratio, you need to see the full nine-block breakdown of their operations below.

ICICI Bank Limited (IBN) - Canvas Business Model: Key Partnerships

You're looking at the network of critical relationships ICICI Bank Limited maintains to power its operations and growth as of late 2025. These aren't just casual connections; they are strategic alliances that provide access to technology, regulatory support, and complementary financial products. Honestly, the bank's scale means these partners are often major players themselves.

DPIIT/Startup India for Accelerator Access and Pilot Programs

ICICI Bank Limited has formalized its support for the Indian startup ecosystem through a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT) to bolster the Startup India Mission. This partnership is designed to offer early- and growth-stage entrepreneurs structured mentorship, funding avenues, and ecosystem access. Selected product-based startups gain entry into ICICI Bank's Mumbai-based accelerator facility, which includes dedicated workspaces and a structured growth curriculum. A key benefit is the opportunity to run pilot programme opportunities with ICICI Bank's business units to validate product-market fit. This deepens ICICI Bank Limited's integration into the innovation pipeline, leveraging its substantial balance sheet, which stood at ₹21.23 trillion as of 30 June 2025.

Technology Vendors for AI, Cloud, and Big Data Infrastructure

The bank's commitment to digital transformation necessitates deep partnerships with technology vendors for core infrastructure and advanced capabilities like Artificial Intelligence (AI), cloud services, and big data analytics. While the annual ICT spending was estimated at $1.1 billion in 2024, the investment continued robustly into the latest fiscal year. For the financial year ended March 31, 2025 (FY25), technology expenses represented 10.7% of operating expenses. Given the reported operating expenses of ₹42,372.32 crore for FY-25, this translates to technology spending of approximately ₹4,533.84 crore in FY25. These funds support vendors providing the backbone for AI-based credit assessments and process automation.

Here's a look at the financial scale related to technology investment and overall operational size:

Metric	Value (as of FY2025 or latest available)	Source/Context
Technology Expenses as % of Operating Expenses (FY25)	10.7%	ICICI Bank FY2025 filing
Operating Expenses (FY25)	₹42,372.32 crore	ICICI Bank FY2025 filing
Approximate Technology Spend (FY25)	₹4,533.84 crore	Calculated from above
Estimated Annual ICT Spending (2024)	$1.1 billion	GlobalData estimate
Total Assets (as of 30 June 2025)	Rs 21.23 trillion	As of mid-2025

iVIS for E-Surveillance and Branch Security Enhancement

ICICI Bank Limited partners with iVIS, a subsidiary of Magellanic Cloud, to deploy advanced e-surveillance services across its physical footprint. This collaboration integrates AI/ML and IoT Technology for real-time video monitoring, facial recognition, and automated incident detection, specifically fortifying branch-level security around ATMs and cash counters. The scale of iVIS's operations, which includes overseeing surveillance for 20,000 ATMs and banking sites nationwide through its Hyderabad command center, underpins the security framework for ICICI Bank Limited's extensive network.

• Leverages AI/ML and IoT for real-time threat mitigation.
• Focuses on securing ATMs and cash counter operations.
• iVIS central hub monitors 20,000 sites nationwide.
• Aims for remote security management and automated response systems.

Payment Networks (Visa, Mastercard, RuPay) for Card Issuance

While direct card issuance volume data for Visa and Mastercard isn't immediately available, the success of ICICI Bank Limited's digital payment channel, the iMobile Pay app, shows the massive scale of its payment processing partnerships, which are built on the NPCI's RuPay/UPI infrastructure. The app, which allows access to non-ICICI Bank customers, processed approximately 730 million UPI transactions in March 2025 alone. This demonstrates the high-volume transactional capacity flowing through its payment partnerships.

ICICI Group Subsidiaries (Life, General, AMC) for Cross-Selling

The integrated nature of the ICICI Group is a core strength, allowing ICICI Bank Limited to cross-sell insurance and asset management products seamlessly. The bank's total revenue for 2025 was reported at ₹2.946 trillion. The performance of the Asset Management Company (AMC) subsidiary shows the direct financial benefit derived from this ecosystem. For instance, the profit after tax for ICICI Prudential Asset Management Company reached ₹835 crore (US$ 94 million) in Q2-2026, up from ₹694 crore (US$ 78 million) in Q2-2025. This indicates a growing, quantifiable contribution from the group's non-banking financial services arms.

Key financial contributions from the group structure in the latest reported periods include:

• Total Revenue for ICICI Bank Limited (2025): ₹2.946 trillion.
• ICICI Prudential AMC PAT (Q2-2026): ₹835 crore.
• ICICI Prudential AMC PAT (Q2-2025): ₹694 crore.
• ICICI Securities became a wholly-owned subsidiary effective March 24, 2025.

Finance: draft next quarter's cross-sell target contribution by Monday.

ICICI Bank Limited (IBN) - Canvas Business Model: Key Activities

You're looking at the core engine room of ICICI Bank Limited, the activities that actually make the money and manage the risk. It's all about deploying capital wisely and keeping the digital plumbing running smoothly. Here's a breakdown of what ICICI Bank Limited is actively doing, based on the latest figures we have.

Retail and Corporate Credit Underwriting and Disbursement

The bank's primary activity here is extending credit, and they've been aggressive, clocking an impressive 12% loan growth in fiscal 2025, outpacing the industry average of around 9% to 9.5% for that period. This growth is a balanced push across retail and corporate segments. You see this in the balance sheet, where Loans and Advances stood at ₹13,417.66 billion as of March 31, 2025. To be fair, the retail side is still the anchor, with the retail loan portfolio comprising 52.1% of the total loan portfolio at September 30, 2025. The corporate side is also seeing action, with the Business Banking portfolio showing strong year-on-year growth of 24.8% at September 30, 2025.

The underwriting process itself is heavily digitized, using data science-driven credit scoring and industry-specific risk models to keep things tight. This focus on risk discipline is key to their asset quality performance.

Developing and Maintaining Proprietary Digital Platforms

ICICI Bank Limited's key activities heavily involve maintaining and enhancing its digital ecosystem. They aren't just running apps; they are processing massive transaction volumes through them. For instance, iMobile, the mobile banking app for retail customers, was busy in fiscal 2025, processing 558 million transactions valued at ₹11,238 billion. For the business side, InstaBIZ saw its financial transaction value jump by 37% in the same fiscal year. They also launched DigiEase in fiscal 2025, a digital onboarding platform for Business Banking customers that pulls data from GST, MCA, and ITR portals for real-time validation. Plus, the iLens platform, used for mortgages and personal loans, was upgraded to handle credit-card offerings during fiscal 2025.

This digital backbone relies on significant internal tech infrastructure. Here's a snapshot of that internal connectivity:

Technology Metric	Value	Date/Period
Total APIs Developed	More than 5,500	FY2025
Internal Consumed APIs	Over 3,500	FY2025
InstaBIZ Transaction Value Growth	37%	FY2025
iMobile Transactions Processed	558 million	FY2025

Managing a Large, Stable Deposit Base

Securing funding is a constant, critical activity. ICICI Bank Limited manages a substantial and growing pool of customer funds. The total deposit base at March 31, 2025, was a solid ₹16,103.48 billion. This base is a mix of current and savings accounts (CASA) and term deposits, both showing healthy growth year-on-year as of that date. The average CASA deposits for fiscal 2025 were ₹5,606.25 billion, representing 39.0% of the total average deposits for that year.

The cost of funding is something you definitely watch. The cost of average deposits rose by 30 basis points, settling at 4.91% in fiscal 2025, mainly due to the repricing of domestic term deposits.

Treasury Operations and Investment Management

Managing the bank's own balance sheet, liquidity, and investments is a core function. This involves optimizing the investment portfolio, which stood at ₹5,047.57 billion at March 31, 2025. Treasury operations also interact directly with the Net Interest Margin (NIM), which was reported at 4.32% for fiscal 2025. The bank is constantly balancing the yield on its assets against the cost of its liabilities, which is a continuous, high-stakes activity.

Key operational metrics related to funding and asset deployment include:

• Net Interest Margin (NIM) for FY2025: 4.32%
• Total Investments at March 31, 2025: ₹5,047.57 billion
• Cost of Average Deposits in FY2025: 4.91%
• Credit/Deposit Ratio at March 31, 2025: 83.3x (or 0.833)

Maintaining a Strong Asset Quality

This is arguably the most important risk-management activity. ICICI Bank Limited has successfully maintained a very strong asset quality profile. The Net NPA ratio stood at 0.39% as of September 30, 2025, which is excellent, and it was also 0.39% at the end of the last fiscal year, March 31, 2025. This low figure shows effective underwriting and proactive management of bad loans. The provisioning coverage ratio on non-performing loans was 75.0% at September 30, 2025, indicating a high buffer against potential losses. You want to see this discipline in action.

Here's how the asset quality has trended:

• Net NPA Ratio (Sep 30, 2025): 0.39%
• Net NPA Ratio (Mar 31, 2025): 0.39%
• Gross NPA Ratio (Sep 30, 2025): 1.58%
• Provisioning Coverage Ratio (Sep 30, 2025): 75.0%

ICICI Bank Limited (IBN) - Canvas Business Model: Key Resources

The foundation of ICICI Bank Limited's operational strength rests on several tangible and intangible assets that fuel its market position and growth trajectory.

The strong capital base provides the necessary buffer for lending and absorbing potential shocks. The total capital adequacy ratio of ICICI Bank Limited stood at a robust 16.55% as of March 31, 2025, calculated in accordance with Basel III guidelines after deducting the proposed dividend for fiscal 2025. This figure is an improvement from 16.33% reported at March 31, 2024. It's a clear signal of prudent balance sheet management.

Here's a quick look at the scale of the capital base and physical footprint as of the latest reporting periods:

Key Metric	Value (As of March 31, 2025)	Value (As of September 30, 2025)
Total Capital Adequacy Ratio (CAR)	16.55%	17.00% (Standalone)
Tier-1 Capital Adequacy Ratio	15.94%	16.35% (CET-1, Standalone)
Standalone Total Assets	₹ 21,182.40 billion	₹ 26,86,485 crore (Consolidated)
Business Centres (Branches)	6,983	N/A
ATMs/Cash Recycling Machines	16,285	N/A

Proprietary digital platforms are central to ICICI Bank Limited's service delivery, enabling scale and efficiency. The digital ecosystem, often referred to as ICICI Stack, powers key customer interfaces. For instance, transactions on the InstaBIZ platform saw a year-on-year increase of 37% for the period ending September 30, 2025, quarter-on-quarter. The iMobile Pay app continues to see sustained transaction volumes, supporting the bank's strategy to bring the entire bank to the customer digitally.

The extensive physical network remains a critical resource for deep market penetration and customer trust, especially in semi-urban and rural areas. As of March 31, 2025, the physical presence was quantified by:

• 6,983 Business Centres across the country.
• 16,285 ATMs and Cash Recycling Machines deployed.
• 1,058 Digital Service Kiosks integrated into the network.

Large customer data and analytics capabilities form the backbone of modern credit decisioning and service personalization. The bank leverages proprietary machine learning and statistical models for credit assessment, incorporating multiple data points like transaction behaviour and bureau checks. The iCRM platform is key to this, supporting the Customer 360° strategy. To gauge customer sentiment, the bank annually covers around 3.8 million customers for feedback using the Net Promoter Score (NPS) tool.

Human capital, particularly expertise in technology and risk management, is actively managed and developed. The total workforce stood at 129,177 employees following a net reduction of 6,723 employees in fiscal 2025, reflecting a focus on efficiency through digitization. To align incentives and reward collective performance, the bank deepened the allotment of share-linked compensation to approximately 20,769 employees during fiscal 2025. Furthermore, the commitment to a strong risk culture is evident, with about 31,000 employees participating in risk and compliance workshops in 2025.

ICICI Bank Limited (IBN) - Canvas Business Model: Value Propositions

ICICI Bank Limited offers the entire spectrum of financial services to customer segments covering large and mid-corporates, MSME, agri, and retail businesses. The standalone total assets stood at ₹21,182.40 billion at March 31, 2025, with Loans and Advances at ₹13,417.66 billion.

The value proposition centers on seamless, multi-channel access to a full suite of services.

• Universal banking across retail, corporate, and investment services.
• Strong franchise strength across 6,983 branches at March 31, 2025.
• Granular portfolio mix with 74.8% of corporate loans to entities internally rated A- and above.

Instant, secure digital banking is a core pillar, exemplified by the performance of the mobile application.

iMobile, ICICI Bank Limited's mobile banking app for retail customers, processed 558 million transactions worth ₹11,238 billion in fiscal 2025. The Bank launched 'SmartLock' on iMobile, an industry-first feature allowing customers to instantly lock or unlock internet banking, mobile banking, UPI, and their credit and debit cards with one click.

Tailored solutions for Business Banking show significant expansion, indicating a focus on this segment.

The Business Banking portfolio expanded by 33.7% year-on-year to reach ₹2,633.67 billion at March 31, 2025, contributing 19.6% to the net advances. The value of financial transactions on InstaBIZ, the one-stop app for Business Banking, grew by 37% in fiscal 2025.

Financial stability and trust are underpinned by superior asset quality and strong capital buffers.

Metric	Value (As of March 31, 2025)	Value (As of June 30, 2025)
Gross NPA Ratio	1.67%	1.79%
Net NPA Ratio	0.39%	0.44%
Provision Coverage Ratio (PCR)	76.2%	N/A
Common Equity Tier I (CET I) Ratio	15.94%	16.31%
Contingency Provisions Held	₹131 billion (~1% of total loans)	N/A

The Bank's consolidated Return on Equity for fiscal 2025 was 18.0%. Credit costs were benign, standing at 27 bps annualized in one period, compared to 38 bps quarter-on-quarter.

Rapid onboarding and personalized credit are supported by digital scale and product penetration.

• Close to 18 million active credit cards in force as at March 31, 2025.
• Unsecured exposure (credit cards + personal loans) is well-controlled at 13% of total loans as of Q2FY26.
• Fee income grew 16.0% year-on-year in Q4-2025.

Finance: draft 13-week cash view by Friday.

ICICI Bank Limited (IBN) - Canvas Business Model: Customer Relationships

You're looking at how ICICI Bank Limited structures its interactions with its vast customer base as of late 2025. The approach is clearly a blend of scale automation and high-touch service for premium segments, all underpinned by significant investment in employee capability.

Automated self-service and AI assistance (iPal Voice Banking)

ICICI Bank Limited continues to place the customer at the centre of process reimagination, harnessing new-age technologies to serve customers with simplicity. While specific interaction volumes for the iPal Voice Banking feature aren't public, the focus on digital journeys is evident across the ecosystem.

The bank maintains multiple dedicated support lines, showing segmentation even in voice support:

• Toll-free number for general personal banking issues: 18001080.
• Toll-free number for private banking or wealth management queries: 18001038181.
• Number for business, corporate, and retail institutional banking: 18601206699.

The bank saw a sustained improvement in the Net Promoter Score (NPS) during fiscal 2025, which reflects customer value creation and advocacy driven by these service enhancements.

Dedicated relationship managers for Wealth and Corporate clients

For higher-value segments, ICICI Bank Limited deploys specialized human capital. The bank equips relationship managers across departments with a holistic customer engagement mindset through the mandatory Customer-360° Program in fiscal 2025. This program included advanced modules in trade products, business banking, and asset products to handle complex needs.

The investment in this specialized staff is supported by targeted training; in 2025, around 31,000 employees participated in risk and compliance workshops, ensuring relationship managers operate within defined guardrails.

The structure supports specialized service, as evidenced by the dedicated contact points for these clients, such as the number 18001038181 for wealth management support.

Digital-led customer lifecycle management via iCRM

All customer complaints or service requests are recorded in a Customer Relationship Management (CRM) system and tracked for end-to-end resolution, which is central to the bank's grievance redressal framework. This system allows for a Detailed Root Cause Analysis (RCA) of issues raised in customer feedback.

The bank's commitment to digital skill-building is substantial. In fiscal 2025, ICICI Bank Limited delivered over 10 million learning hours, averaging around 10 learning days per employee, to equip staff with required skillsets, including digital transformation and data science.

The bank also deepened its use of share-linked compensation, allotting these instruments to around 20,769 employees during fiscal 2025, tying a significant portion of the workforce to long-term performance.

Hybrid model combining high-tech digital access with physical branch support

ICICI Bank Limited continues to enhance banking convenience by taking the entire bank to the customer, utilizing both its extensive physical footprint and digital platforms. The physical network remains a key anchor for the micromarket approach.

The bank's physical presence as of September 2025 stood at 7,246 locations across the country. To ensure service quality at this scale, the Business Centre Program trained around 2,500 business centre leaders in 2025, incorporating the Customer-360° mindset.

Here is a snapshot of the scale and investment related to customer engagement and infrastructure as of the latest reporting periods:

Metric Category	Specific Data Point	Value/Amount	Reporting Period/Date
Physical Footprint	Number of Locations	7,246	September 2025
Employee Capability	Total Learning Hours Delivered	Over 10 million hours	Fiscal 2025
Relationship Staff Training	Business Centre Leaders Trained	Around 2,500	2025
Customer Feedback	NPS Trend	Sustained Improvement	Fiscal 2025
Corporate Responsibility	CSR Obligation Fulfilled	₹8.01 billion	Fiscal 2025

The bank's total deposits grew to ₹16,103.5 billion in FY25, up 11.6% from the prior year, indicating a growing base served by this hybrid relationship model.

ICICI Bank Limited (IBN) - Canvas Business Model: Channels

You're looking at how ICICI Bank Limited reaches its customers and delivers value across its entire ecosystem as of late 2025. It's a blend of physical presence and deep digital integration, which is key to their scale.

Mobile Applications (iMobile Pay, InstaBIZ)

The digital front is dominated by the mobile apps. iMobile Pay, the retail banking application, continues to see massive adoption. While the latest user count for late 2025 isn't public, we know that in FY2024, it already had more than 30 million users, with transaction values approaching ₹ 11,000 billion for that fiscal year. The business banking app, InstaBIZ, is also a major channel, showing a 37% year-over-year growth in transactions for FY2025. This platform offers services like Goods and Services Tax (GST) payment and instant overdraft facilities.

• iMobile Pay users: > 30 million (as of FY2024)
• iMobile Pay transaction value: Close to ₹ 11,000 billion (FY2024)
• InstaBIZ transaction growth: 37% YoY (FY2025)

Extensive Network of Physical Branches and ATMs

Despite the digital push, the physical footprint remains substantial for trust and complex transactions. As of March 31, 2025, ICICI Bank Limited reported a network of 6,983 branches and 16,285 ATMs across India. By September 2025, the total number of locations stood at 7,246. This physical network is still vital for deepening customer relationships and advisory services, especially for products like mortgages and business banking.

Channel Component	Count (as of March 31, 2025)	Count (as of September 2025)
Physical Branches	6,983	N/A
ATMs	16,285	N/A
Total Locations	N/A	7,246

Internet Banking and API Integrations (ICICI Stack for startups)

ICICI Bank Limited's open architecture via ICICI Stack is a critical channel for corporate and fintech partners. The 'ICICI STACK for Corporates' offers a comprehensive set of digital banking solutions, including a list of 350 solutions tailored for an entire corporate ecosystem. For startups and developers, the API integration allows for speedy onboarding; for instance, API-based digital account opening is an industry-first feature. In an earlier period, the bank managed over 4,600 APIs processing more than 160 million financial and non-financial transactions daily.

Call Centers and Voice Banking Services

While specific call center volume for late 2025 isn't itemized separately from other digital channels, these services form a necessary layer for complex issue resolution and voice-based banking, supporting the digital self-service channels.

UPI Merchant Acquiring

UPI merchant acquiring is a high-volume channel, though its monetization strategy shifted in mid-2025. For the fiscal year ending March 2025, UPI merchant acquiring grew by 51.6% year-over-year. This channel saw ICICI Bank Limited processing around 1.7 billion UPI transactions in June 2025 alone, positioning it as the 3rd-largest Payee Payment Service Provider (PSP) on the UPI network at that time. Starting August 1, 2025, the bank implemented a fee structure for Payment Aggregators (PAs) processing UPI transactions, charging 2 basis points (capped at ₹6) for those with an escrow account, and 4 basis points (capped at ₹10) for those without. Transactions settled directly into a merchant's ICICI Bank account remain exempt from this PA fee.

ICICI Bank Limited (IBN) - Canvas Business Model: Customer Segments

You're mapping out the core customer base for ICICI Bank Limited, which is quite broad, spanning from individual retail users to massive institutional players. Honestly, the sheer scale of their operations, with Standalone Total Assets at ₹21,182.40 billion and Total Deposits at ₹16,103.48 billion in fiscal 2025, shows they need this diverse segmentation to manage risk and growth effectively.

The bank's strategy clearly leans into granular customer focus, which is smart for a financial powerhouse of this size. Here's a breakdown of the key groups they serve based on recent figures.

Mass Market Retail Customers

This is the engine room for daily transactions and credit penetration. ICICI Bank Limited has definitely pushed hard here, especially on the unsecured credit side. You can see the digital adoption is massive, with their mobile app being a primary touchpoint for this segment.

• The bank held close to 18 million active credit cards in force as at March 31, 2025.
• The retail portfolio was a key driver, accounting for 53% of the total loan portfolio in Q2 FY24-25.
• Retail loans showed a year-on-year growth of 6.9% as of Q1FY26.
• Average savings account deposits grew by 10.2% in fiscal 2025 over the previous fiscal year.
• The Current Account Savings Account (CASA) ratio remained stable around 38.4% in 2025.
• iMobile transactions reached 558 million transactions worth ₹11,238 billion in fiscal 2025.

Small and Medium Enterprises (SMEs) and Business Banking

This segment is showing some of the most aggressive growth, indicating a successful push for formalization and digital services for smaller businesses. The growth rate here is outpacing the overall domestic loan growth, which is a strategic win.

The Business Banking portfolio, which serves businesses with an annual turnover of up to ₹7.50 billion, expanded by 33.7% to ₹2,633.67 billion at March 31, 2025. This segment contributed 19.6% to the net advances.

Metric	Value (as of FY2025/Q1FY26)	Context
Business Banking Portfolio Growth (YoY)	33.7%	As of March 31, 2025
Business Banking Book Growth (YoY/QoQ)	29.7% / 3.7%	As of Q1FY26
InstaBIZ Transaction Growth (Value)	37%	In fiscal 2025
Contribution to Net Advances	19.6%	As of March 31, 2025

Large Corporate and Institutional Clients

For the largest clients, the focus shifts to deep, integrated relationship banking, including trade finance and treasury management. While the domestic corporate loan book saw a year-on-year growth of 7.5%, it actually de-grew by -1.4% quarter-on-quarter in Q1FY26, suggesting a selective approach based on risk-reward. The bank emphasizes cross-selling fee income through specialized digital solutions.

• Domestic Corporate Loan Book Growth (YoY): 7.5%.
• Domestic Corporate Loan Book Growth (QoQ): -1.4%.
• Digital trade transactions were over 70% of all eligible trade transactions processed in fiscal 2024 [cite: 15 (from 2024, showing digital adoption)].

Non-Resident Indians (NRIs) and International Operations

ICICI Bank Limited maintains an international footprint to cater to the global Indian diaspora. The bank has a presence in 11 countries, with specific entities like ICICI Bank UK PLC offering dedicated NRI Services. For NRI deposits, the interest rate environment in 2025 was competitive.

Deposit Type (Less than ₹2 crore)	Highest Interest Rate (p.a.)	Effective Date/Period
NRE FD	7.25%	For tenure between 15 months to 2 years (as of March 28, 2025)
NRO FD	7.10%	Starts from 3.00% p.a. (as of March 28, 2025)

Startups and Innovators (via DPIIT partnership)

This is a newer, strategic segment focus, formalized in late 2025. ICICI Bank Limited signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT) on September 4, 2025. The goal is to provide structured support to early- and growth-stage entrepreneurs.

• Partnership formalized on September 4, 2025.
• Selected startups gain access to ICICI Bank's Mumbai-based accelerator facility.
• The program includes structured curriculum and mentorship from industry leaders.

Finance: draft Q3FY26 segment-wise loan book variance analysis by next Tuesday.

ICICI Bank Limited (IBN) - Canvas Business Model: Cost Structure

You're looking at the expense side of ICICI Bank Limited's operations, which is where a bank turns its revenue potential into actual profit. For a massive institution like ICICI Bank Limited, the cost structure is dominated by a few key areas, all of which are under constant scrutiny for efficiency.

The investment in digital capability is a major, non-negotiable cost. You saw the estimated technology and ICT spending was around $1.1 billion in 2024. That trend continued, showing a clear commitment to staying ahead in the digital race. For the full fiscal year 2025, the technology expenses represented about 10.7% of the bank's total operating expenses, which translates to approximately ₹4,533.84 crore for FY-25, based on total operating expenses of ₹42,372.32 crore for that period. This spending covers everything from core system upgrades to cybersecurity defenses, which is critical after recent regulatory focus on IT resilience in the sector.

The next big chunk of costs involves the people and the physical footprint. Employee compensation and branch network maintenance are substantial fixed and semi-fixed costs. In Q2 FY25, for instance, employee costs were reported to have increased by 11% year-on-year. To manage the network, ICICI Bank Limited added 83 branches in Q1FY26 alone, bringing the total network to 7,066 branches. Also, as of fiscal 2025, the bank deepened the number of employees who were allotted share-linked compensation to around 20,769 employees, tying a significant portion of their cost structure to performance and long-term retention.

The cost of funds, which is essentially the interest expense paid on deposits, is the single largest variable cost for any bank. For the full year FY2025, interest expenses saw an increase of 10.8% year-on-year. The cost of deposits settled at 4.4% for FY25, though this nudged slightly to 4.5% in Q1FY26, reflecting the competitive environment for gathering customer liabilities. This is the direct cost of the money ICICI Bank Limited uses to lend out.

Here's a quick look at how the core operating expenses broke down in a recent quarter:

Expense Category	Growth (YoY Q2 FY25)	FY2025 Tech Spend (% of OpEx)
Employee Costs	11% Increase	N/A
Non-Employee Expenses (ex-Tech)	3.8% Growth	N/A
Technology Expenses	N/A	10.7%

Marketing and brand promotion costs are managed to support growth without ballooning the expense base. While specific consolidated figures for the entire ICICI Bank Limited for FY2025 are less granular in public reports, the subsidiary ICICI Bank UK PLC reported total advertising and marketing expenses of USD 52.1 million (or INR 4,449 million) for the year ended March 31, 2025, as they continued selective investments to build brand presence.

The success in managing these costs is reflected in the bank's efficiency metric. Operational efficiency is a key focus, and ICICI Bank Limited achieved a Cost-to-Income Ratio of 38.6% in FY2025, as you noted. This is a strong number, demonstrating disciplined cost control relative to income growth. For the very latest snapshot, the total Cost to Income Ratio improved further to 37.8% in Q1FY26. This efficiency is driven by several factors:

• Focus on digital channels reducing physical transaction costs.
• Disciplined management of non-employee operational expenses.
• Leveraging scale across a growing loan book.
• Employee cost growth managed alongside share-linked compensation.

Finance: draft 13-week cash view by Friday.

ICICI Bank Limited (IBN) - Canvas Business Model: Revenue Streams

The revenue streams for ICICI Bank Limited are fundamentally anchored in its core banking operations, supplemented by non-interest income from its diverse financial services subsidiaries and market activities. You see this split clearly when looking at the full-year 2025 numbers.

Net Interest Income (NII) remains the largest component, derived from the spread between interest earned on loans and advances and interest paid on deposits and borrowings. For the fiscal year 2025, the Net Interest Margin (NIM) stood at 4.32%. The Net Interest Income for FY2025 was reported as Rs 811,644 million.

Fee income is the second major pillar. Total fee income for FY2025 was Rs 239,497 million. Within this, the income generated from retail, rural, and business banking customers is substantial. For instance, in the first quarter of the subsequent fiscal year (Q1FY26), non-corporate fees constituted about 79% of the total fees, indicating the strong reliance on granular customer banking relationships for fee generation.

The bank also captures revenue through its specialized subsidiaries, which include insurance and asset management. While specific cross-selling income is often bundled, the overall Other Income for FY2025 was Rs 285,067 million, a significant year-on-year decline of 62.7% from the previous year's Rs 765,218 million. This 'Other Income' bucket captures the gains from subsidiaries, foreign exchange, and treasury activities.

Treasury income from the investment portfolio and commissions from foreign exchange and trade finance are embedded within the 'Other Income' line item, though specific breakdowns are not always isolated in summary reports. For example, trading profits for FY2025 were reported as a small figure, Rs 90 million, suggesting that the bulk of treasury gains, if any, were realized elsewhere or that the focus was on balance sheet management rather than active trading gains for the full year.

Here's a quick look at the key income components for ICICI Bank Limited for FY2025, based on reported figures:

Revenue Component	FY2025 Amount (INR Million)	Context/Metric
Net Interest Income (NII)	811,644	Core lending profitability
Net Interest Margin (NIM)	4.32%	FY2025 reported NIM
Total Fee Income	239,497	Total non-interest income from services
Other Income (Total Non-Interest Income excluding some trading)	285,067	Includes subsidiary income, forex, and treasury
Fee Income from Retail/Rural/Business Banking	Approx. 79% of Total Fees	Based on Q1FY26 data as a proxy for core fee mix

You can see the direct contribution from core banking versus non-core activities. The bank's revenue generation is heavily weighted towards the interest spread, but the fee income stream, especially from the retail and business segments, provides a crucial, less capital-intensive revenue buffer. The performance of the subsidiaries, reflected in the 'Other Income' line, is clearly a variable factor year-to-year.

The revenue streams can be further broken down by the source of fee generation:

• Income from retail banking services.
• Commissions from rural banking activities.
• Fees derived from business banking platforms.
• Income from insurance underwriting and distribution.
• Management fees from asset management subsidiaries.
• Commissions from foreign exchange transactions.

Finance: draft the Q3FY26 revenue forecast based on Q2FY26 trends by Monday.