ICICI Bank Q2 profit rises 20% to ₹14,843 crore, NII jumps 18%
ADVERTISEMENT
ICICI Bank on Saturday reported a 20.1% year-on-year (YoY) increase in consolidated net profit to ₹14,843 crore for the September quarter of FY27, compared with ₹12,359 crore in the year-ago period, as net interest income rose and asset quality improved.
Net interest income (NII), the difference between interest earned and interest expended, rose 17.7% YoY to ₹25,339 crore from ₹21,529 crore in Q2 FY26. However, net interest margin (NIM) narrowed to 4.18% from 4.36% in the preceding quarter and 4.30% a year earlier.
During the quarter under review, operating profit grew 18.9% YoY to ₹20,575 crore from ₹17,298 crore in the corresponding quarter last year.
Non-interest income, excluding treasury, increased 12.5% YoY to ₹8,277 crore. Fee income rose 20.1% to ₹7,795 crore, with fees from retail, rural and business banking customers accounting for around 75% of the total.
Operating expenses increased 8.5% YoY to ₹12,811 crore. The bank reported a treasury loss of ₹230 crore during the quarter, compared with a gain of ₹220 crore in the year-ago period, ICICI Bank said in its earnings report.
Asset quality improves, provisions decline
ICICI Bank’s asset quality improved during the September quarter, with the gross non-performing asset (GNPA) ratio declining to 1.20% as of September 30, 2026, from 1.58% a year earlier and 1.38% in the June quarter.
The net NPA ratio eased to 0.30% from 0.39% in the year-ago period and 0.35% in the preceding quarter.
As per the release, provisions, excluding tax provisions, declined to ₹851 crore in Q2 FY27 from ₹914 crore in the corresponding quarter last year. The bank continued to hold contingency provisions of ₹13,100 crore as of September 30, 2026, along with additional standard asset provisions of ₹1,283 crore made in Q3 FY26 as directed by the Reserve Bank of India for its agricultural priority-sector portfolio.
Advances rise 30%, deposits grow 27%
ICICI Bank’s total advances increased 30% YoY and 12.3% sequentially to ₹18.32 lakh crore as of September 30, 2026. Excluding loans extended by its international branches against FCNR (B) deposits, advances grew 24.1% YoY and 7.3% quarter-on-quarter.
Total deposits rose 27.1% YoY and 11.8% sequentially to ₹20.50 lakh crore. Excluding FCNR (B) deposits, deposit growth stood at 17% YoY and 3.1% sequentially.
The bank’s consolidated assets grew 22.6% YoY to ₹32.93 lakh crore at the end of September 2026, compared with ₹26.86 lakh crore a year earlier.
Its capital adequacy ratio stood at 16.68%, while the Common Equity Tier 1 (CET-1) ratio was 16.01%, comfortably above the respective minimum regulatory requirements of 11.70% and 8.20%.
During the quarter, ICICI Bank also purchased an additional 2% stake in ICICI Life Insurance Limited for ₹1,470 crore.
Ahead of the results, ICICI Bank shares closed Friday’s session at ₹1,396.80 on the BSE, up 0.13%. The lender’s market capitalisation stood at around ₹10.02 lakh crore.