Mumbai, October 18, 2026: ICICI Bank reported a strong financial performance for the second quarter of the financial year 2026–27 (Q2 FY27), with standalone net profit rising 20.1% year-on-year to ₹14,843 crore. The bank had recorded a net profit of ₹12,359 crore in the corresponding quarter of the previous financial year.

The growth was supported by robust lending activity, higher interest income and a reduction in provisions for potential loan losses. The results highlight the bank’s continued business expansion amid changing conditions in the Indian banking sector.

Net Interest Income Increases 17.7%

ICICI Bank’s net interest income (NII), which measures the difference between interest earned on loans and interest paid on deposits, increased 17.7% year-on-year to ₹25,339 crore in Q2 FY27, compared with ₹21,529 crore a year earlier.

The increase reflects sustained lending activity across retail, rural, business banking and corporate segments. The bank’s core operating profit also grew 21.8% year-on-year to ₹20,805 crore, indicating continued strength in its underlying banking operations.

Loan Book and Deposits Record Strong Growth

The bank’s total loan portfolio expanded 30% year-on-year to ₹18.32 lakh crore as of September 30, 2026. Excluding certain international branch loans linked to FCNR(B) deposits, loan growth stood at 24.1%.

Total deposits increased 27.1% year-on-year to ₹20.50 lakh crore. This growth strengthened the bank’s deposit base and supported its expanding lending operations.

Retail and rural loans grew 14.8% year-on-year, while the business banking portfolio recorded growth of 33.8%. Domestic corporate loans also increased by 30.6%, reflecting strong demand across business segments.

Net Interest Margin Moderates

Despite the increase in profit and interest income, ICICI Bank’s net interest margin (NIM) declined to 4.18% in the September quarter, compared with 4.30% in the corresponding quarter last year and 4.36% in the preceding quarter.

NIM measures the difference between the interest a bank earns on its assets and the interest it pays on its liabilities, relative to its interest-earning assets.

The moderation in NIM remains an important indicator to watch as banks balance loan growth, deposit costs and profitability.

Lower Provisions Support Profit Growth

The bank’s provisions, excluding tax provisions, declined to ₹851 crore in Q2 FY27 from ₹914 crore in the year-ago quarter, representing a decrease of approximately 6.9%.

Meanwhile, asset quality improved. The gross non-performing asset (NPA) ratio fell to 1.20% at the end of September 2026, compared with 1.38% at the end of the preceding quarter.

The net NPA ratio stood at 0.30%, indicating a relatively low level of bad loans after accounting for provisions.

Consolidated Profit Also Rises

ICICI Bank’s consolidated net profit increased to ₹16,333 crore in Q2 FY27 from ₹13,357 crore in the corresponding quarter of the previous year.

The bank continued expanding its physical presence, adding 145 branches during the first half of FY27. Its network reached 7,656 branches and 12,143 ATMs and cash recycling machines as of September 30, 2026.

Outlook: Growth Remains Strong, Margins in Focus

ICICI Bank’s latest results demonstrate strong earnings growth, supported by higher net interest income, an expanding loan portfolio and improved asset quality.

However, the decline in net interest margin highlights a challenge for the coming quarters. Investors will closely monitor deposit costs, credit demand, loan quality and the bank’s ability to maintain profitability as its business expands.

Overall, the September-quarter results reflect solid operating momentum, although the sustainability of margin levels will remain a key factor in assessing the bank’s future performance.