ICICI Bank posts 16 per cent growth in Q1 profit at ₹14,805 crore; NIM remains stable

The rural segment led growth at 35.4%, trailed by business banking at 28.2%, domestic corporate at 18.5% and retail at 12%.
| Photo Credit:
REUTERS

ICICI Bank posted a solid 16% year‑on‑year rise in Q1FY27 standalone net profit, reaching ₹14,805 crore, driven by growth in net interest and non‑interest income and a drop in provisions.

The bank, India’s second‑largest private lender, recorded a net profit of ₹12,768 crore in the same period last year.

Asked about the sustainability of the Q1FY27 net interest margin of 4.36% (up from 4.34% in Q1FY26), Sandeep Batra, Executive Director at ICICI Bank, replied: “This quarter we gained from income‑tax refunds, which lifted the margin.”

“Q1 margins also gained from term‑deposit repricing and higher interest refunds, though these were partly offset by increased interest reversals on the Kisan Credit Card book,” he added.

Batra said the FY27 net interest margin is likely to stay within a range, barring any major interest‑rate shifts.

“There will be a slight drag on the margin from the FCNR (B) deposit scheme and loans against those deposits,” Batra noted.

Regarding the fresh FCNR (B)/Foreign Currency Non‑Resident (Bank) mobilization under the RBI’s concessional swap window, the ICICI Bank executive director said leverage will be tailored to each client’s profile and to what partners are prepared to extend. The bank also plans to issue overseas bonds to give NRIs access to leverage.

“Customers should earn a fair return, and we anticipate a solid uptake in FCNR deposits over the coming months,” he added.

In the reporting quarter, ICICI Bank’s net interest income (NII) – the gap between interest earned and interest paid – climbed 13% year‑on‑year to ₹24,384 crore, up from ₹21,635 crore a year earlier.

Total non‑interest income – which includes fees, dividend income from subsidiaries and other items – rose roughly 16% year‑on‑year to ₹8,425 crore, up from ₹7,264 crore last year. Treasury income fell sharply by 88% to ₹151 crore, down from ₹1,241 crore a year earlier.

Provisions, covering both non‑performing and standard assets, dropped 31% to ₹1,260 crore, from ₹1,815 crore a year earlier.

Gross advances grew about 20% year‑on‑year to ₹16,31,260 crore as of end‑June 2026, propelled by robust expansion across all segments. The rural book led with 35.4% growth, followed by business banking at 28.2%, domestic corporate at 18.5% and retail at 12%.

Total deposits climbed 14% year‑on‑year to ₹18,33,586 crore as of end‑June 2026. The proportion of average CASA (current and savings account) deposits in total deposits slipped to 38.1%, down from 38.7% in the same quarter last year.