HDFC Bank also saw a healthy growth in its net profit for the quarter, up over 9% to Rs 19,221.05 crore. (Source: File)ICICI Bank and HDFC Bank, two of the biggest names in India’s private-sector lending space, reported a high single-digit year-on-year growth in net profit for the fourth quarter of the financial year 2026 (Q4FY26).Their net interest income, however, was underwhelming.ICICI Bank reported a net profit of Rs 13,701.68 crore for the quarter under discussion, up over 8%. However, its net interest income rose just 2% to Rs 43,275.39 crore. The bank’s profitability was boosted by a sharp drop in provisions to Rs 96.16 crore, compared to the Rs 890.70 crore reported a year ago, and the Rs 2,554.28 crore reported in the previous quarter.The high provision number for October-December 2025 was due to the Rs 1,283 crore that the bank was directed to make by the Reserve Bank of India due to violations in its priority-sector agricultural lending portfolio.HDFC Bank also saw a healthy growth in its net profit for the quarter, up over 9% to Rs 19,221.05 crore.However, its net interest income fell 1% to Rs 76,610.02 crore. Both banks’ net interest margins remained broadly steady compared to the previous quarter— ICICI Bank’s rose by 2 basis points to 4.32%, and HDFC Bank’s remained unchanged at 3.4%.Asset quality improvesBoth banks saw further improvement in their asset quality during the quarter. ICICI Bank’s net non-performing asset (NPA) ratio improved to 0.33% as on March 31 from 0.39% a quarter ago.For HDFC Bank, this improved to 0.38% from 0.42%.Both banks have seen their asset quality improve consistently over the past few quarters, a trend seen across the entire banking system. On a gross basis, ICICI Bank’s NPA ratio fell 13 bps to 1.40%, while HDFC Bank’s fell 9 bps to 1.15%.Deposits and loans growStory continues below this adICICI Bank reported total deposits of Rs 17.9 lakh crore as on March 31, up over 11% YoY.Its total loan book grew by nearly 16% to Rs 15.5 lakh crore. Rural loans saw the highest growth— up 26% to Rs 98,376 crore. Retail loans grew by 9.5% to Rs 7.9 lakh crore.HDFC Bank saw its average deposits during the quarter grow by over 14% to Rs 31.05 lakh crore as of March 31. Its gross advances jumped 12% to Rs 29.6 lakh crore. Its retail loan portfolio grew 6.5%. The highest growth was seen in the business banking portfolio, which jumped 20% to Rs 3.8 lakh crore.Apart from both these major private banks, YES Bank also reported its March quarter results during the day, its first under new chief executive Vinay M Tonse. Its net profit jumped 45% to Rs 1,068 crore, and its net interest income rose 16% to Rs 2,637.7 crore.Story continues below this adOn Friday, shares of ICICI Bank had ended 0.5% higher at Rs 1,352.80, while those of HDFC Bank had gained 0.6% to Rs 800. Shares of HDFC Bank had closed 2.3% higher at Rs 20.41. © The Indian Express Pvt LtdTags:hdfc