ICICI Bank’s Q2FY26 net profit up 5% at ₹12,359 cr

Net interest margin (NIM) improved a shade to 4.30 per cent in Q2FY26 from 4.27 per cent in the preceding quarter, but was lower than 4.34 per cent in the preceding quarter
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ICICI Bank posted a moderate 5% year-over-year increase in second-quarter (Q2FY26) standalone net profit at ₹12,359 crore, buoyed by reduced provisions for bad loans and sustained asset quality improvements. The private lender had recorded ₹11,746 crore net profit during the same period last fiscal year.

Net interest income climbed 7% y-o-y to ₹21,529 crore (₹20,048 crore), while other income streams – including fees, treasury operations, and recoveries – rose 6% to ₹7,576 crore (₹7,177 crore).

The bank’s net interest margin (NIM) edged up to 4.30% from 4.27% in Q2FY25 though slightly down from 4.34% in Q1FY26. Executive Director Sandeep Batra indicated that NIM trajectory would remain influenced by interest rates, with potential upticks from phased CRR reductions and deposit repricing.

“We prioritize holistic customer profitability encompassing fees alongside lending activities. Future rate adjustments may affect NIMs marginally,” Batra explained.

Asset quality strengthened further with gross NPAs improving to 1.58% of advances (vs 1.97% YoY) and net NPAs declining to 0.39% (vs 0.42%). Domestic loan growth stood at 10.6%, propelled by a 24.8% surge in business banking loans despite slower retail (6.6%) and corporate (3.5%) segments. Total advances rose 10.3% to ₹14.08 lakh crore.

Deposits grew 7.7% to ₹16.13 lakh crore, with CASA ratio improving to 39.2% from 38.9% last year. Batra projected stronger second-half performance, citing supportive fiscal and monetary policies: “We maintain optimism regarding credit expansion across segments.”

Published on October 18, 2025