Archive · 8 Sep 2026
Macquarie Highlights ICICI Bank’s Productivity and Funding Strengths
Macquarie Research compared how efficiently large banks use their employees and branches.
It said ICICI Bank had one of the lowest employee quit rates, at 16% in FY26.
The bank also reduced its workforce over the past two years instead of rapidly hiring more people.
This means each employee generated more business for the bank.
Banks were also getting more business from their existing branches.
ICICI Bank attracted about $17.88 billion in FCNR(B) deposits, giving it a large share of that funding.
These deposits may reduce pressure on the bank’s liquidity, although they could slightly reduce margins.
One weaker area was insurance income, which fell 9% at ICICI Bank.
Macquarie’s review described the bank’s overall operating profile as strong, but it was not a new recommendation to buy or sell the stock.
Macquarie said ICICI Bank’s FY26 employee attrition fell about 200 basis points year on year to 16%.
The bank reduced employee numbers over two years as large private banks shifted toward productivity-led growth.
Advances per employee rose 14-22% across large private banks in FY26, reflecting higher output from existing staff.
ICICI Bank mobilised about $17.88 billion in FCNR(B) deposits, roughly 18% of the total scheme.
Insurance income declined 9% at ICICI Bank, making bancassurance its main weak operating indicator.
- Who
- ICICI Bank and other large banks were assessed by Macquarie Research.
- What
- Macquarie identified lower attrition, restrained hiring, higher employee productivity, more productive branches and strong FCNR(B) mobilisation as key features of ICICI Bank.
- When
- The assessment covered FY26, with reports dated September 7, 2026, and September 2, 2026.
- Where
- The analysis concerned ICICI Bank’s banking operations and its international branches and subsidiaries.
- Why
- Macquarie said these trends could improve operating leverage and ease liquidity pressures, although FCNR(B) deposits may dilute margins and insurance income declined.
Positive operating assessment
Risks and limitations
Workforce and productivity
Positive operating assessment
Lower attrition, restrained hiring and stronger advances per employee suggest that ICICI Bank is generating more output from a relatively stable workforce.
Risks and limitations
Reduced hiring and employee numbers could create operating constraints, although Macquarie said frontline capacity and service quality were being maintained.
FCNR(B) funding
Positive operating assessment
ICICI Bank’s roughly 18% share of FCNR(B) mobilisation could materially ease liquidity pressures.
Risks and limitations
Macquarie cautioned that FCNR(B) deposits are likely to cause some margin dilution.
Insurance business
Positive operating assessment
Bancassurance supports profitability across the banking sector, particularly where insurance income is growing.
Risks and limitations
ICICI Bank’s insurance income declined 9%, lagging Axis Bank, Kotak Mahindra Bank and State Bank of India.
- FY26 attrition
- 16% at ICICI Bank, down about 200 basis points year on year
- Peer attrition
- 23% at HDFC Bank and 40% at IndusInd Bank
- Employee trend
- ICICI Bank’s employee numbers declined over the past two years
- Productivity
- Advances per employee increased 14-22% across large private banks in FY26
- FCNR(B) mobilisation
- ICICI Bank mobilised about $17.88 billion, approximately 18% of total FCNR(B) deposits
- Funding impact
- More than 70% of the associated FCNR(B) leverage was financed through ICICI Bank’s own balance sheet
- Insurance income
- ICICI Bank’s total insurance income fell 9%, including a 12% decline in life insurance income