ICICI Bank, India’s second-largest private sector lender, reported a 5.2% year-on-year (YoY) increase in its standalone net profit for the second quarter of FY26 at ₹12,359 crore, compared to ₹11,746 crore in the same quarter last fiscal. The steady performance was supported by higher interest income, lower provisions, and improved asset quality.
Strong Core Performance
The bank’s Net Interest Income (NII) — the difference between interest earned and interest paid — grew 7.4% YoY to ₹21,529 crore in Q2FY26, up from ₹20,048 crore last year. The Net Interest Margin (NIM) stood at 4.30%, reflecting strong profitability from lending operations.
The Pre-Provision Operating Profit (PPOP) rose 3.43% YoY to ₹17,297.96 crore, compared to ₹16,723.18 crore in Q2FY25. Meanwhile, provisions (excluding tax) dropped sharply to ₹914.11 crore, down from ₹1,233.09 crore in the same quarter last year and ₹1,814.57 crore in the previous quarter — a sign of improved credit quality and lower stressed assets.
Improving Asset Quality
ICICI Bank continued to strengthen its balance sheet, reporting a decline in bad loans. The Gross Non-Performing Assets (GNPA) fell 3.57% sequentially to ₹23,849.66 crore, while Net NPA dropped 2.41% to ₹5,827 crore.
The Gross NPA ratio improved to 1.58% from 1.67% in the previous quarter, and the Net NPA ratio eased to 0.39% from 0.41%. These figures highlight the bank’s effective risk management and asset recovery efforts.
At the end of September 2025, the bank’s total capital adequacy ratio stood at 17.00%, and the CET-1 ratio at 16.35%, both comfortably above the RBI’s minimum requirements of 11.70% and 8.20%, respectively.
Loan and Deposit Growth
ICICI Bank’s total advances rose 10.3% YoY and 3.2% quarter-on-quarter (QoQ) to ₹14,08,456 crore as of September 30, 2025. The net domestic advances grew 10.6% YoY and 3.3% QoQ, driven by steady demand in retail and business segments.
The retail loan portfolio, which accounted for 52.1% of total advances, expanded 6.6% YoY, while business banking loans surged 24.8% YoY. However, the rural portfolio saw a 1.3% decline YoY.
On the deposit side, average deposits rose 9.1% YoY and 1.6% QoQ to ₹15,57,449 crore in Q2FY26. Average current account deposits climbed 12.6% YoY, and average savings deposits grew 8.5% YoY. Total deposits stood at ₹16,12,825 crore, a 7.7% YoY increase. The CASA ratio — a key indicator of low-cost funding — remained healthy at 39.2%.
Branch Expansion and Digital Growth
Continuing its physical and digital expansion, ICICI Bank added 263 branches during the first half of FY26, taking its total branch network to 7,246 branches and 10,610 ATMs and cash recycling machines as of September 30, 2025.
Conclusion
ICICI Bank’s Q2FY26 performance reflects robust fundamentals, steady profitability, and improved asset quality despite a challenging macroeconomic environment. With a strong capital base, rising loan growth, and continued branch expansion, the bank remains well-positioned to sustain momentum and strengthen its market leadership among private lenders in India.