ICICI Bank Posts 20 Percent Rise in Q2 Net Profit to Rs 14,843 Crore

ICICI Bank has reported a standalone net profit of Rs 14,843.03 crore for the quarter ended September 30, 2026, marking a 20.1 per cent increase compared to the same period in the previous year. According to reporting from CNBC-TV18, the earnings performance surpassed analyst expectations across key metrics, bolstered by robust core income growth and a sharp contraction in provisioning.

The financial results, approved during a Saturday board meeting and subjected to limited review by joint statutory auditors B S R & Co. LLP and C N K & Associates LLP as noted by PSU Connect, arrive during a busy period of corporate earnings announcements across the banking sector. Major lenders including HDFC Bank, Axis Bank, and the Central Bank of India also revealed their September-quarter scorecards on Saturday.

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Net interest income, defined as the difference between interest earned and interest expenses, grew 17.7 per cent year-on-year to Rs 25,339 crore. As highlighted by Business Today, this figure exceeded projections. However, net interest margins faced downward pressure, easing to 4.18 per cent from 4.36 per cent in the previous quarter and 4.3 per cent in the year-ago period. Bank officials explained that the previous period benefited from interest on tax refunds, whereas the benefit in the latest quarter was negligible. Excluding that tax refund benefit, underlying margins contracted in line with broader industry trends.

Asset quality metrics continued to strengthen over the quarter. The gross non-performing asset ratio improved to 1.20 per cent as of September 30, 2026, dropping from 1.38 per cent at the end of June and 1.58 per cent a year earlier. Net NPAs similarly reduced to 0.30 per cent. Provisions excluding tax fell sharply by 32.5 per cent from the preceding quarter to stand at Rs 851 crore, providing an additional earnings boost.

Non-interest income, excluding treasury operations, expanded by 12.5 per cent year-on-year to reach Rs 8,277 crore. Fee income jumped 20.1 per cent to Rs 7,795 crore, driven largely by retail, rural, and business banking customers who accounted for approximately 75 per cent of total fee generation. Conversely, the bank recorded a treasury loss of Rs 230 crore, shifting from a gain in the preceding quarter due to shifting market movements.

Deposit mobilization remained strong, with total period-end deposits surging 27.1 per cent year-on-year to reach Rs 20.50 lakh crore. Excluding foreign currency non-resident deposits, growth stood at 17 per cent. Meanwhile, the total loan portfolio expanded by 30 per cent to hit Rs 18.32 lakh crore. Capital adequacy remained robust, with the total capital adequacy ratio standing at 16.68 per cent and the Common Equity Tier 1 ratio at 16.01 per cent, comfortably above regulatory minimums.

Beyond core earnings, corporate developments included the purchase of an additional 2 per cent stake in ICICI Life Insurance Ltd for Rs 1,470 crore. The board also resolved to seek approval from the Reserve Bank of India for the continuation of Pradeep Kumar Sinha as non-executive part-time chairperson for a term extending from July 1, 2027, through February 16, 2029. Ahead of the announcement, shares in the lender closed slightly higher on the BSE.

As the busy earnings season unfolds across the financial sector, market participants continue to monitor portfolio growth and margin adjustments among major lenders. The pending regulatory decision regarding the chairperson extension remains subject to approval by the Reserve Bank of India.