Athira Sethu
Kochi, 19 Oct 2026
ICICI Bank registered a 20.1% rise in its net profit in the second quarter of FY27. The bank recorded a profit of ₹14,843 crore against the same quarter last year. The profit was better than the market expectation of ₹14,280 crore.
The profit of the bank is attributed to higher interest income, growth in loan, and asset quality improvement.
1. Growth in Income and Profit
ICICI Bank witnessed a growth of 17.7% in its Net Interest Income (NII) to ₹25,339 crore as against ₹21,529 crore in the same period last year. NII is the difference between interest income earned and interest expense paid.
The core operating profit of ICICI Bank rose by 21.8% to ₹20,805 crore. The fee income grew by 20.1% to ₹7,795 crore where nearly 75% of fee income was received from retail, rural, and business banking customers.
Operating expenses of ICICI Bank rose by 8.5% to ₹12,811 crore.
2. Net Interest Margin Declines
ICICI Bank’s Net Interest Margin (NIM) reduced to 4.18% in the September quarter as against 4.36% in the preceding quarter and 4.30% in the same quarter last year.
NIM is an indicator that shows the earning of banks from their interest-related business.
3. Improvement in Quality of Assets
The quality of assets at ICICI Bank has improved over the last quarter.
The gross NPA has come down to 1.20% compared to 1.38% in June and 1.58% last year. The net NPA has fallen to 0.30% compared to 0.35% in the previous quarter.
NPA is the status assigned to the accounts of customers that have stopped making payments for a given period of time.
Provision made by the bank for the possible losses in the loans has come down to ₹851 crore from ₹914 crore a year ago.
4. High Growth in Loans & Deposits
Loans at ICICI Bank increased by 30% year-over-year and reached ₹18.32 lakh crore.
Loans to retail and rural customers rose by 14.8%, whereas loans to business banking customers increased by 33.8%. Lofts to domestic customers rose by 30.6%.
Total deposits increased by 27.1% and reached ₹20.50 lakh crore. Excluding some foreign currency deposits, the deposits increased by 17%.
5. Healthy Capital Structure
The bank’s capital adequacy ratio stood at 16.68% and the Common Equity Tier-1 ratio was 16.01%. In both cases, the ratios were above the mandatory levels.
Furthermore, ICICI Bank made another purchase of 2% stake in ICICI Life Insurance to the value of ₹1,470 crore during the quarter.
6. Share Price Performance
Shares of ICICI Bank were up by 0.55% to ₹1,397 pre-results. During the year so far, the share price was up 4.4%, compared to the decline in Nifty 50 index of 11.5%.
In the September quarter, ICICI Bank achieved impressive earnings growth due to growth in core income, loans and asset quality. Also, the bank reported growth in deposits and capital above the mandatory level.
However, the net interest margin of ICICI Bank declined compared to the previous quarter. Overall, ICICI Bank showed robust business performance and better loan quality along with lower interest margins.
