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July 20, 2025 — Indian banks posted a strong start to FY26 with healthy profit growth, improved asset quality, and stable credit performance despite global headwinds and rate cycle uncertainty. Here’s a comparative snapshot of five key players—ICICI Bank, Union Bank of India, Indian Overseas Bank (IOB), YES BANK, and AU Small Finance Bank.
📊 Net Profit: All Banks Report Double-Digit Growth
| Bank | Q1FY26 Net Profit (₹ Cr) | YoY Growth |
|---|---|---|
| ICICI Bank | ₹12,768 | +15.5% |
| Union Bank of India | ₹4,116 | +11.87% |
| Indian Overseas Bank (IOB) | ₹1,111 | +75.6% |
| YES BANK | ₹801 | +59.4% |
| AU Small Finance Bank | ₹581 | +16% |
IOB and YES BANK led the earnings momentum among public and private banks respectively, driven by high recoveries and improved cost efficiency.
💼 Loan Growth & Business Expansion
| Bank | Advances Growth YoY | Deposits Growth YoY | Total Business YoY |
|---|---|---|---|
| Union Bank | +6.83% | +3.63% | +5.01% |
| ICICI Bank | +12% (Domestic) | +12.8% | — |
| IOB | +14.05% | +10.75% | +12.19% |
| YES BANK | +5% | +4.1% | — |
| AU SFB | +18% | +31% | — |
AU Small Finance Bank showed the fastest deposit growth at 31%, while ICICI and IOB led credit expansion among larger banks.
📉 Asset Quality: NPAs Continue to Decline
| Bank | Gross NPA | Net NPA | Remarks |
|---|---|---|---|
| ICICI Bank | 1.67% | 0.41% | Strong corporate recovery |
| Union Bank | 3.52% | 0.62% | Sharp YoY improvement |
| IOB | 1.97% | 0.32% | Best-in-class recovery, PCR 97%+ |
| YES BANK | 1.6% | 0.3% | Stable performance |
| AU SFB | 2.47% | 0.88% | High PCR at 83% |
🧾 Capital & Efficiency Indicators
| Bank | CRAR | RoA | Cost-to-Income Ratio |
|---|---|---|---|
| ICICI Bank | 16.97% | 2.4% | ~41% |
| Union Bank | 18.30% | 1.11% | ~58% |
| IOB | 18.28% | 1.14% | 44.22% |
| YES BANK | 16.2% | 0.8% | 67.1% |
| AU SFB | 20% | 1.5% | 54.0% |
🏆 Highlights & Strategic Moves
- Union Bank: Strong RAM (Retail, Agri, MSME) lending growth; GNPA fell over 100 bps YoY.
- ICICI Bank: Consistent earnings, corporate recovery, and loan book diversification.
- IOB: Historic high profit, robust recoveries, digital expansion, and best PCR among peers.
- YES BANK: 7th consecutive quarter of profit growth; improved CASA and stable NPAs.
- AU SFB: Strong retail and deposit traction; expanded partnerships (LIC, IFC), and CSR leadership.
📌 Conclusion
Indian banks are off to a solid FY26, showing resilience with strong earnings, declining NPAs, and growing customer franchises. While public sector banks like IOB and Union Bank are capitalizing on digital and retail strength, private players like ICICI Bank and AU SFB continue to deliver consistent growth and innovation.
