ICICI Bank Hits 5.2% Profit Growth in Q2
ICICI Bank has reported an impressive growth in its net profit for the quarter ending September 2025. The bank's profit after tax (PAT) rose by 5.2%, reaching ₹12,359 crore compared to ₹11,746 crore in the same period last year. This growth is a positive indicator of the bank's financial health and stability in a competitive market.
A significant contributor to this profit increase is the net interest income (NII), which grew by 7.4% year-on-year, amounting to ₹21,529 crore up from ₹20,048 crore in the previous fiscal's second quarter. The net interest margin (NIM) stood at a commendable 4.3%, reflecting the bank's effective interest earning capability.
Moreover, ICICI Bank's fee income also saw a robust increase of 10.1%, totaling ₹6,491 crore in Q2 FY26 compared to ₹5,894 crore in the same quarter last year. The bank noted that fees from retail, rural, and business banking customers accounted for approximately 78% of total fees, showcasing its strong retail banking presence.
On the lending front, the net domestic advances surged by 10.6% year-on-year, indicating a healthy demand for loans. The retail loan portfolio specifically grew by 6.6%, making up 52.1% of the bank's total loan portfolio as of September 30, 2025. Additionally, average deposits rose by 9.1%, further strengthening its financial foundation.
In terms of asset quality, ICICI Bank reported a gross non-performing assets (NPA) ratio of 1.58%, a notable improvement from 1.97% during the same period last year. The net NPA ratio also decreased to 0.39%, compared to 0.42% previously. The bank added gross NPAs of ₹5,034 crore in Q2 FY26, slightly lower than ₹5,073 crore in the same quarter last year. Furthermore, it wrote off gross NPAs amounting to ₹2,263 crore during this quarter.
Overall, ICICI Bank's strong financial results reflect its effective management strategies and robust growth in various segments. As the bank continues to enhance its service offerings, it is well-positioned to thrive in the evolving Indian banking landscape.
