-
ICICI Bank reported a 5.2% YoY increase in net profit for Q2 FY26, reaching ₹12,359 crore.
-
ICICI Bank saw its NII rise 7.4% YoY to ₹21,529 crore, driven by healthy loan growth and stable margins.
-
Asset quality improved further, with gross NPA dropping to 1.58% and provisions falling 26% YoY.
ICICI Bank posts steady Q2 earnings growth
ICICI Bank reported stable financial performance in its Q2 earnings for the quarter ending September 30, 2025. The private lender’s net profit (PAT) rose 5.2% year-on-year to ₹12,359 crore, compared to ₹11,746 crore in the same period last year. This steady growth was supported by higher interest income and disciplined cost management. Analysts say the results reflect the bank’s strong operational base and balanced approach in a period of economic uncertainty.
ICICI Bank records growth in Net Interest Income
ICICI Bank continued its upward trend in Q2 earnings with Net Interest Income (NII) rising 7.4% year-on-year to ₹21,529 crore, up from ₹20,048 crore a year earlier. The bank maintained a healthy Net Interest Margin (NIM) of 4.30%, showcasing efficient lending and deposit management. This indicates that ICICI Bank has been able to balance growth and profitability even amid changing interest rate environments. The steady rise in NII reflects the bank’s ability to manage its core income streams effectively.
ICICI Bank improves asset quality in Q2 earnings
ICICI Bank demonstrated significant improvement in asset quality during its Q2 earnings review. The gross Non-Performing Asset (NPA) ratio dropped to 1.58%, down from 1.97% in the same quarter last year. Similarly, the net NPA ratio eased to 0.39%, compared to 0.42% earlier. These figures show that ICICI Bank continues to strengthen its loan book through effective risk management and recovery strategies. Lower bad loans also mean reduced provisioning needs, allowing more profit to flow to the bottom line.
ICICI Bank sees sharp decline in provisions
ICICI Bank reported a notable decline in provisions during its Q2 earnings, further boosting profitability. Provisions (excluding tax) fell sharply to ₹914 crore in Q2 FY26, compared to ₹1,233 crore in the previous year’s same quarter — a drop of over 25%. The bank continues to maintain strong contingency reserves worth ₹13,100 crore, ensuring a safety cushion against future uncertainties. This prudent provisioning approach highlights ICICI Bank’s focus on financial stability and sustainable growth.
ICICI Bank expands domestic loan portfolio
ICICI Bank recorded solid growth in its loan book in Q2 earnings, supported by strong demand across retail, corporate, and SME segments. The domestic loan portfolio expanded 10.6% year-on-year to ₹13,75,260 crore as of September 30, 2025. This growth was largely driven by retail lending — including housing, vehicle, and personal loans — where demand remained robust. The bank’s strategy of focusing on quality borrowers and diversified lending helped it sustain momentum without compromising asset quality.
ICICI Bank witnesses steady deposit growth
ICICI Bank also posted encouraging results on the deposit front in its Q2 earnings. Total deposits increased 7.7% year-on-year to ₹16,12,825 crore. Meanwhile, average deposits for the quarter grew by 9.1%, reflecting strong customer trust and expanding retail presence. The rise in low-cost Current Account Savings Account (CASA) deposits supported margin stability. Analysts believe this steady deposit growth positions the bank well for future credit expansion, particularly as it continues to grow in semi-urban and digital channels.
ICICI Bank enhances core operating profit
ICICI Bank delivered a healthy rise in its core operating profit during the Q2 earnings period, up 6.5% year-on-year to ₹17,078 crore. This was achieved through disciplined cost management, steady fee income, and improved operating efficiency. The bank’s focus on technology adoption, automation, and digital banking has also helped reduce operating expenses. This consistent performance underscores ICICI Bank’s ability to maintain profitability even as competition in the Indian banking space intensifies.
ICICI Bank strengthens leadership with new appointment
ICICI Bank also announced a key governance update along with its Q2 earnings report. The Board has approved the appointment of Vijayalakshmi Iyer as an Additional (Independent) Director for a term starting December 1, 2025, subject to shareholder approval. Ms. Iyer brings extensive experience from her leadership roles in banking and public sector organizations. This move reflects the bank’s continued commitment to strong corporate governance and leadership diversity.
ICICI Bank outlook remains positive post Q2 earnings
ICICI Bank enters the second half of FY26 with a solid foundation, as reflected in its Q2 earnings. With strong capital adequacy, improving asset quality, and consistent loan and deposit growth, the bank is well positioned to benefit from India’s expanding credit cycle. Analysts remain positive about ICICI Bank’s outlook, citing its balanced mix of retail and corporate lending, digital strength, and prudent risk management. The bank’s focus on sustainable growth and technology-led banking is expected to keep it ahead of peers in the coming quarters.
Final Takeaway
The Q2 earnings of ICICI Bank highlight a period of steady progress and disciplined execution. Rising profits, healthier asset quality, and stable margins show the bank’s resilience amid market challenges. With continued investment in digital transformation and strong leadership at the helm, ICICI Bank remains one of India’s most consistent and trusted financial institutions.
