ICICI Bank Q2 PAT climbs 20.1% YoY; NII grows 17.7%
Net interest income increased 17.7% YoY to Rs 25,339 crore from Rs 21,529 crore, and 3.9% from Rs 24,384 crore in Q1. Net interest margin stood at 4.18%, against 4.30% a year ago and 4.36% in Q1 FY27.
Interest earned rose 17.6% to Rs 49,110 crore, while interest expended rose 17.5% to Rs 23,771.31 crore. Other income rose 6.2% to Rs 8,047.49 crore. Non-interest income excluding treasury rose 12.5% to Rs 8,277 crore, with fee income up 20.1% to Rs 7,795 crore from Rs 6,491 crore. Dividend income from subsidiaries fell to Rs 463 crore from Rs 810 crore.
Profit before tax rose 20.4% YoY to Rs 19,724.54 crore from Rs 16,383.85 crore, and 3.1% from Rs 19,125.62 crore in Q1 FY27. Tax expense rose 21.3% to Rs 4,881.51 crore from Rs 4,024.96 crore.
Profit before tax excluding treasury grew 23.4% YoY to Rs 19,954 crore, as the bank booked a treasury loss of Rs 230 crore against a gain of Rs 220 crore a year ago.
Operating profit before provisions and contingencies rose 18.9% YoY to Rs 20,575.23 crore from Rs 17,297.96 crore, and 0.9% from Rs 20,386.07 crore in the previous quarter. Core operating profit, which excludes treasury, grew 21.8% to Rs 20,805 crore. As a share of total income, operating profit was 36.0%, compared with 35.1% a year ago and 37.6% in Q1.
On costs, employee expenses rose 13.5% to Rs 4,927.87 crore, other operating expenses rose 5.6% to Rs 7,883.08 crore, and total operating expenses rose 8.5% to Rs 12,810.95 crore.
Provisions and contingencies fell 6.9% to Rs 850.69 crore from Rs 914.11 crore, and 32.5% from Rs 1,260.45 crore in Q1.
The bank?s gross non-performing assets (NPAs) stood at Rs 23,335.24 crore as on September 2026, as against Rs 23,846.59 crore as on June 2026 and Rs 23,849.66 crore as on September 2025.
The gross NPA ratio stood at 1.20% as on September 2026, as against 1.38% as on June 2026 and 1.58% as on September 2025.
Net NPAs were Rs 5,706.22 crore, against Rs 5,908.27 crore and Rs 5,827.00 crore, while the net NPA ratio stood at 0.30%, against 0.35% and 0.39%.
Gross NPA additions were Rs 4,833 crore against Rs 5,034 crore a year ago, the provisioning coverage ratio was 75.0%, and the bank continued to hold a contingency provision of Rs 13,100 crore.
Total period-end deposits rose 27.1% YoY and 11.8% QoQ to Rs 20,49,874 crore as of 30 September 2026. Excluding FCNR (B) deposits, total deposits grew 17.0% YoY and 3.1% QoQ. Average deposits grew 21.2% YoY to Rs 18,88,219 crore in Q2 FY27, while average CASA deposits increased 10.7% YoY. The average CASA ratio was 35.8%, reflecting the increase in term deposits due to FCNR (B) inflows.
Total loans grew 30.0% YoY and 12.3% QoQ to Rs 18,31,580 crore as of 30 September 2026. Excluding loans provided by international branches against FCNR (B) deposits, loans grew 24.1% YoY and 7.3% QoQ. The retail and rural loan portfolio grew 14.8%, business banking grew 33.8%, and domestic corporate loans rose 30.6%. Domestic advances grew 22.8%, and the overseas portfolio made up 7.8% of the loan book.
The bank?s standalone capital adequacy ratio stood at 16.68% as of 30 September 2026, up from 15.76% a year ago and down from 16.84% in June, against the regulatory requirement of 11.70%. Its Common Equity Tier 1 ratio was 16.01%, against the minimum requirement of 8.20%.
ICICI Bank added 145 branches in the first half and had a network of 7,656 branches and 12,143 ATMs and cash recycling machines as of 30 September 2026.
Among subsidiaries, ICICI Life Insurance?s profit after tax (PAT) rose 25.1% YoY to Rs 374 crore, ICICI Lombard General Insurance?s PAT rose 15.4% to Rs 946 crore, ICICI Prudential Asset Management?s PAT rose 6.1% to Rs 889 crore, ICICI Home Finance?s PAT rose 8.4% to Rs 220 crore, and ICICI Securities? PAT rose 3.3% to Rs 439 crore. ICICI Life?s value of new business rose 22.3% to Rs 1,283 crore in the first half, with the VNB margin at 26.0%. The bank bought an additional 2% stake in ICICI Life for Rs 1,470 crore during the quarter. ICICI Lombard?s combined ratio was 107.0%, against 105.1% a year ago.
ICICI Bank is a private sector lender with total assets of Rs 27,25,287 crore as of 30 September 2026. Its subsidiaries span life and general insurance, asset management, broking and home finance.
Shares of ICICI Bank rose 0.55% to settle at Rs 1,397 on 16 October 2026.
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