ICICI Bank Q2 Net profit rises 20%

ICICI Bank exceeded market estimates on Saturday by reporting a 20.1 percent year-over-year increase in standalone net profit to Rs 14,843 crore for the second quarter of FY27. While asset quality improved, the private sector lender reported significant increases in advances and net interest income (NII).

The net profit was 3.9 percent more than the CNBC TV18 poll prediction of Rs 14,280 crore. ICICI Bank's net interest income surpassed the poll forecast of Rs 24,811 crore by 2.1 percent, rising 17.7 percent year over year to Rs 25,339 crore from Rs 21,529 crore.

The bank's net interest margin (NIM) stood at 4.18 percent in the July-September quarter, compared with 4.36 percent in the preceding quarter and 4.30 percent in the year-ago period.

Core operating profit increased 21.8 percent year-on-year to Rs 20,805 crore from Rs 17,078 crore. Fee income rose 20.1 percent to Rs 7,795 crore, with fees from retail, rural and business banking customers accounting for approximately 75 percent of the total. Operating expenses increased 8.5 percent year-on-year to Rs 12,811 crore.

ICICI Bank reported provisions, excluding tax provisions, of Rs 851 crore for the September quarter, compared with Rs 914 crore a year earlier, representing a decline of approximately 6.9 percent.

The bank continued to maintain contingency provisions of Rs 13,100 crore, alongside an additional standard asset provision of Rs 1,283 crore made in the third quarter of FY26 under RBI directions relating to its agricultural priority sector portfolio.

The net NPA ratio improved to 0.30 percent from 0.35 percent sequentially and 0.39 percent a year earlier. Gross NPA additions stood at Rs 4,833 crore, compared with Rs 5,034 crore in the corresponding quarter last year.

The bank's total advances increased 30 percent year-on-year and 12.3 percent sequentially to Rs 18.32 lakh crore as of September 30. Excluding loans extended by international branches against foreign currency non-resident (FCNR-B) deposits, total loan growth was 24.1 percent year-on-year and 7.3 percent sequentially.

The retail and rural loan portfolio grew 14.8 percent year-on-year, while the business banking portfolio expanded 33.8 percent. The domestic corporate portfolio registered growth of 30.6 percent.

Total period-end deposits increased 27.1 percent year-on-year to Rs 20.50 lakh crore. Excluding FCNR-B deposits, deposit growth stood at 17 percent. Average deposits rose 21.2 percent to Rs 18.88 lakh crore. The average current account and savings account (CASA) ratio stood at 35.8 percent, reflecting the increase in the term deposit base due to FCNR-B deposit inflows.