ICICI Bank Q2 Profit Grows 5.2%: Strong Performance
ICICI Bank, one of India’s leading private sector lenders, has reported a 5.2% increase in its profit after tax (PAT) for the quarter ending September 2025. The profit stands at ₹12,359 crore, up from ₹11,746 crore in the same quarter last year. This steady growth highlights the bank’s ability to navigate the competitive banking landscape effectively.
In terms of net interest income (NII), ICICI Bank saw a rise of 7.4% year-on-year, reaching ₹21,529 crore compared to ₹20,048 crore in Q2 of FY25. The bank’s net interest margin (NIM) also remained healthy at 4.3%, indicating strong profitability from its lending activities.
Another notable aspect of ICICI's performance is the growth in fee income, which increased by 10.1% year-on-year to ₹6,491 crore in Q2 FY26. Fees from retail, rural, and business banking customers accounted for approximately 78% of total fees, showcasing the bank’s strong focus on customer-centric services.
The bank reported a significant increase in net domestic advances, which jumped by 10.6% year-on-year. The retail loan portfolio alone grew by 6.6%, constituting 52.1% of the total loan portfolio as of September 30, 2025. This indicates the robust demand for retail lending, providing a positive outlook for the bank’s future growth.
On the asset quality front, ICICI Bank reported a decrease in the gross non-performing assets (NPA) ratio to 1.58% from 1.97% in the corresponding period last year. The net NPA ratio also improved to 0.39% from 0.42%. This decline in NPAs is a positive signal for investors, as it demonstrates the bank’s effective credit risk management.
During Q2 FY26, the bank added gross NPAs amounting to ₹5,034 crore, slightly down from ₹5,073 crore in Q2 FY25. Moreover, ICICI Bank has written off gross NPAs of ₹2,263 crore during the July-September 2025 quarter, further showcasing its proactive approach to managing bad loans. The provisioning coverage ratio on non-performing loans stood at 75% as of September 30, 2025, ensuring sufficient buffers against potential losses.
In conclusion, ICICI Bank's solid performance in the second quarter reflects its strong fundamentals and strategic focus. With continuous growth in profits and improvement in asset quality, the bank is well-positioned to meet the evolving needs of its customers while delivering value to its shareholders.
