ICICI Bank has introduced the Capital Gains Account Scheme (CGAS), a specialized facility designed to help taxpayers manage their long-term capital gains while maintaining tax exemption benefits. The scheme allows customers to deposit un-invested capital gains or sale proceeds from specified capital assets, earning interest while remaining eligible for tax exemptions under the Income Tax Act.

Government Authorization and Industry Participation

The bank received government approval as an authorized institution to handle CGAS deposits, joining several other major financial institutions in offering this service. Other authorized banks include HDFC Bank, Axis Bank, Kotak Mahindra Bank, and Yes Bank, all providing similar CGAS services through their non-rural branches.

Scheme Availability and Eligibility

The Capital Gains Account Scheme becomes operational from January 1, 2026, initially targeting resident individuals and Hindu Undivided Families (HUFs). The bank plans to extend access to non-individuals and non-resident Indians (NRIs) in the near future. Customers can open CGAS accounts at ICICI Bank branches, excluding rural locations, in compliance with regulatory guidelines.

Account Types and Features

The scheme offers two distinct account categories to meet different customer requirements:

Investment Timeline and Approved Assets

Deposits under CGAS can be temporarily maintained for up to three years, providing taxpayers adequate time to plan strategic reinvestments. The scheme permits reinvestment in several approved asset categories:

• Property investments
• Agricultural land acquisitions
• New capital assets in industrial undertakings within non-urban areas
• Investments in special economic zones

Interest earnings are provided at rates comparable to regular savings accounts or fixed deposits, depending on the account type selected. All withdrawals require proper documentation and proof of fund usage as per CGAS regulatory requirements.

Bank Profile

ICICI Bank, one of India's leading private sector banks, reported total assets of ₹21,36,271.00 crore as of September 30, 2025. The launch of CGAS represents the bank's continued expansion of specialized financial products to meet evolving customer tax planning needs.

The Indian banking sector is experiencing a notable transformation in its credit landscape, with credit growth stabilizing and secured retail and MSME lending emerging as key drivers. Public sector banks (PSUs) have regained dominance in the MSME sector, while private banks maintain a selective approach.

MSME Credit Landscape Sees Major Shift

Over the past 6-9 months, PSU banks have successfully re-established their dominance in MSME credit. This resurgence is attributed to several competitive advantages:

This execution-led push is enabling PSU banks to gain substantial market share, particularly in working capital and smaller business loans. Private banks, in contrast, are maintaining a more selective approach, preferring hybrid structures that combine partial guarantees with collateral.

Unsecured Business Lending Undergoes Reset

Unsecured business lending is experiencing a clear recalibration across the sector. Growth has moderated significantly to 10-20% from the previously elevated levels of 30-40% seen in prior years, despite a sharp correction in pricing structures.

Stress pockets remain visible in specific segments, particularly in agri-linked commodity businesses and among FMCG distributors facing elongated working capital cycles.

Housing Sector Shows Continued Resilience

Housing and real estate lending continues to demonstrate resilience despite some cooling from peak growth levels. Disbursement momentum has improved, primarily led by large developers and redevelopment projects.

PSU banks are regaining relevance in the home loan segment, aided by competitive pricing, faster processing capabilities, and normalized distribution commissions. This has driven particular traction in Tier-2 and Tier-3 markets.

Retail Unsecured Products Show Stabilization Signs

Early signs of stabilization are emerging in retail unsecured products. The personal loan and credit card segments are moving past peak stress periods, with early delinquencies stabilizing, though overall delinquency levels remain elevated compared to historical norms.

Stock Recommendations and Outlook

ICICI Bank has received a Buy rating with a target price of ₹1,700, supported by its structural strengths in disciplined risk management, prudent underwriting, and well-diversified loan book.

AU Small Finance Bank has also earned a Buy rating with a target of ₹1,100, supported by margin expansion and controlled credit costs.

Looking ahead, the credit cycle appears to be settling into a more sustainable, execution-driven phase. The medium-term opportunity favors lenders with strong execution capabilities, diversified growth levers, and consistent asset quality as the sector balances growth ambitions with profitability and risk discipline.