ICICI Bank vs Kotak Mahindra Bank (2026): ROA, NIM, Growth & Which Is Better?

ICICI Bank vs Kotak Bank: Q1 FY2027 scoreboard

ICICI is growing a ₹16 lakh crore loan book almost 20%

The scale-adjusted growth is arguably the most impressive metric in the comparison.

ICICI's loan portfolio increased approximately 19.6% year on year to ₹16.31 lakh crore.

Kotak's net advances increased approximately 15% to ₹5.12 lakh crore.

Percentage growth alone understates the difference.

ICICI added substantially more absolute credit despite starting from a loan book more than three times as large.

That suggests the bank continues gaining share across business banking, corporate, rural and selected retail segments.

ICICI's business banking franchise is becoming a major growth engine

Business banking has been one of ICICI's fastest-growing loan categories.

The segment benefits from current accounts, working-capital lending, transaction banking and fee relationships with smaller businesses.

This is strategically useful because business customers can generate both lending yield and low-cost deposits.

It also diversifies growth away from unsecured consumer credit, where banks have become more cautious.

Kotak's growth is more measured

Net advances increased 15% while customer assets grew approximately 16%.

The bank has historically prioritised risk-adjusted returns rather than maximising balance-sheet growth every quarter.

That conservatism is visible in the capital ratio and NPA numbers.

The disadvantage is that excess capital earns very little unless management can deploy it into sufficiently profitable loans, fee businesses or acquisitions.

NIM is one of the few core profitability metrics Kotak still wins

Kotak's NIM was approximately 4.53%, compared with ICICI at 4.36%.

Both are excellent margins for large universal banks.

The difference is only 17 basis points.

That is very different from the Axis comparison, where Kotak's NIM advantage exceeds one percentage point.

ICICI therefore gives up relatively little margin while achieving much faster credit growth and materially higher ROE.

ICICI's Q1 NIM was remarkably resilient

NIM increased slightly from 4.34% a year earlier to 4.36%.

That occurred while several Indian banks were dealing with funding pressure and lower lending yields.

ICICI benefited partly from interest related to an income-tax refund during the quarter, so the small sequential improvement should not be over-interpreted.

The broader point is that margins remained above 4.3% while the loan book grew close to 20%.

Kotak still has the better CASA ratio

Kotak reported CASA of approximately 40.3% at June 2026.

ICICI's average CASA ratio was approximately 38.1%.

Both franchises are strong.

Kotak's slightly better low-cost deposit mix helps support its higher NIM.

However, ICICI's average deposits still grew 14%, giving the bank enough funding momentum to support rapid lending growth.

The funding equation is becoming one of ICICI's biggest variables

Loans grew almost 20% while deposits grew 14%.

That pushed ICICI's credit-deposit ratio toward the high-80s.

A bank cannot indefinitely grow loans materially faster than deposits without either slowing future credit growth or finding additional funding sources.

ICICI has begun tapping alternative channels including international deposits and bond markets.

The next several quarters will show whether deposit growth reaccelerates enough to preserve the current credit trajectory.

Kotak has almost the same credit-deposit ratio despite slower growth

Kotak's credit-to-deposit ratio was approximately 89.4% at June 2026.

This is an interesting contrast.

Kotak has enormous equity capital, but the day-to-day lending engine still depends on deposit funding.

Its period-end deposits grew only around 12% compared with 15% net advance growth.

Kotak therefore also needs healthy deposit mobilisation if it wants to accelerate lending.

Asset quality gives Kotak a narrow but clear lead

Kotak's GNPA was approximately 1.18% and NNPA 0.27%.

ICICI reported GNPA of approximately 1.38% and NNPA of 0.35%.

The gap is small in absolute terms.

Both banks have clean books by Indian banking standards.

Kotak's provision coverage was around 78%.

ICICI's NPA provision coverage was approximately 74.7%.

ICICI's asset quality is more impressive when paired with its growth rate

GNPA declined from 1.67% to 1.38% while loans increased almost 20%.

NNPA fell from 0.41% to 0.35%.

Provisions declined around 31% year on year.

Credit cost remained very low.

This means ICICI is not currently paying for high growth through visibly weaker credit quality.

That is one of the strongest elements of its Q1 result.

ROA is where ICICI establishes a quality lead

ICICI generated approximately 2.49% ROA in Q1 FY2027.

Kotak's standalone ROA was approximately 2.14%.

Both are excellent.

But ICICI is generating the higher asset-level return despite operating a much larger balance sheet and carrying slightly higher NPAs.

This suggests superior overall earnings conversion across spread income, fees, expenses and credit costs.

The ROE gap is much larger

ICICI's ROE was approximately 17.1%. Kotak's was around 12.0%.

This is where Kotak's fortress capital becomes economically expensive.

A bank holding 22%-plus CET1 needs a very high level of absolute profit to generate mid-to-high-teens ROE.

ICICI's CET1 is lower, but still very strong at approximately 16.19%.

It therefore achieves a better balance between capital safety and equity productivity today.

ICICI's capital position is less extreme but more productive

A 16.19% CET1 ratio still gives ICICI a substantial buffer above regulatory requirements.

The bank therefore does not need Kotak-level excess capital to protect solvency.

Its current 17% ROE indicates that more of shareholder equity is actively supporting profitable assets.

That can drive faster book-value compounding if current credit quality holds.

ICICI's subsidiary ecosystem matters more than it first appears

ICICI Bank shareholders also own valuable stakes in insurance, asset-management and securities businesses.

ICICI Prudential Life increased value of new business during Q1.

ICICI Prudential AMC continued generating substantial profit.

ICICI Lombard remains one of India's largest general insurers.

These businesses diversify group earnings away from pure interest spread and can justify part of the bank's valuation premium.

Kotak has an equally broad financial-services DNA

Kotak operates across banking, asset management, securities, investment banking, insurance and wealth management.

Its asset-management business remains an important profit contributor.

The bank is also expanding private banking and wealth through inorganic opportunities.

Kotak therefore has a stronger fee-income platform than its standalone loan book alone would suggest.

Valuation: Kotak is cheaper on book value

Kotak trades around 2.12 times June 2026 book value.

ICICI trades around the mid-2-times book range, approximately 2.6x on current market data.

ICICI therefore carries the higher book-value premium.

Unlike several expensive bank comparisons, the premium has direct support from current ROE.

ICICI produces roughly five percentage points more ROE than Kotak while also growing advances faster.

Can Kotak's lower P/B compensate for lower ROE?

Potentially, if excess capital is deployed well.

A bank trading at 2.1x book with 12% ROE is not obviously cheap if that ROE stays permanently at 12%.

But Kotak has enough unused capital that the current ROE need not represent its mature economics.

If acquisitions and faster credit growth raise ROE toward the mid-teens without weakening NPAs, the current multiple becomes easier to justify.

ICICI's valuation requires continued high-quality growth

A roughly 2.6x book multiple assumes the bank remains a premium compounder.

That means maintaining approximately 2%-plus ROA, mid-to-high-teens ROE and strong credit growth while avoiding a material rise in credit cost.

If loan growth slows toward deposit growth and ROE falls, the valuation can compress even if the bank remains fundamentally healthy.

ICICI's current market positioning is much cleaner to interpret

ICICI is relatively close to its 52-week high despite a roughly flat one-year return.

The stock remains above its 50-, 100- and 200-day moving averages in Bull Run's current technical snapshot.

The ICICI Bank thesis

The Kotak Mahindra Bank thesis

ICICI Bank vs Kotak Bank FAQs

Which has higher NIM?

Kotak slightly, at approximately 4.53% compared with ICICI Bank at 4.36%.

Which is growing loans faster?

ICICI Bank, with approximately 19.6% year-on-year growth versus Kotak around 15%.

Which has lower NPAs?

Kotak, with GNPA of 1.18% and NNPA of 0.27%.

Which has higher ROA?

ICICI Bank at approximately 2.49% versus Kotak standalone ROA around 2.14%.

Which has higher ROE?

ICICI Bank at approximately 17.1% versus Kotak around 12.0%.

Which is better capitalised?

Kotak by a wide margin, with CET1 capital around 22.4% versus ICICI at 16.19%.

Which trades at the lower P/B?

Kotak, at roughly 2.12x June book value versus ICICI around the mid-2-times book range.

Why is Kotak's ROE lower despite a strong NIM?

Kotak carries a very large equity-capital buffer. That improves resilience but lowers the amount of profit generated per rupee of shareholder equity.

Research sources

• Bull Run current market and ownership data
• ICICI Bank official Q1 FY2027 performance review
• ICICI Bank investor relations
• Kotak Mahindra Bank official Q1 FY2027 investor information