Mumbai: ICICI Bank, India's second-largest private sector bank, has announced a robust financial performance for the second quarter of FY26, reporting a 5.2% year-on-year (YoY) increase in its standalone net profit, reaching ₹12,359 crore. This figure surpasses the ₹11,746 crore reported in the corresponding quarter of the previous fiscal year. The bank's strong performance is attributed to healthy core growth, improving asset quality, and lower provisions.
The bank's net interest income (NII), the difference between interest earned and interest expended, saw a significant rise of 7.4% YoY, climbing to ₹21,529 crore from ₹20,048 crore. Net Interest Margin (NIM) remained steady at 4.30%. Core operating profit also experienced a healthy surge, growing by 6.5% YoY to ₹17,078 crore.
ICICI Bank's asset quality demonstrated considerable improvement. The gross non-performing asset (NPA) ratio decreased to 1.58% as of September 30, 2025, a notable reduction from 1.97% a year ago. The net NPA ratio also saw a decrease, settling at 0.39% compared to 0.42% in the previous year. In absolute terms, gross NPAs were ₹23,850 crore, down from ₹27,121 crore in the year-ago period. Net NPAs amounted to ₹5,827 crore, compared to ₹5,685 crore.
Provisions (excluding tax) experienced a significant decline, falling to ₹914 crore in Q2FY26, a considerable drop from ₹1,233 crore in the same quarter last year. This decrease is attributed to the seasonality of Kisan Credit Card (KCC) provisions and healthy asset quality across segments. The bank continues to hold contingency provisions of ₹13,100 crore as of September 30, 2025.
ICICI Bank witnessed robust growth in its domestic loan portfolio, which expanded by 10.6% YoY. As of September 30, 2025, the retail loan portfolio grew by 6.6% YoY and constituted 52.1% of the bank's total loan portfolio. The business banking portfolio demonstrated remarkable growth, increasing by 24.8% YoY. However, the rural portfolio experienced a slight decline of 1.3% YoY. Total advances increased by 10.3% YoY to ₹14,08,456 crore.
Deposits also saw healthy growth, with total deposits at the end of September 2025 rising by 7.7% YoY to ₹16,12,825 crore. Average deposits increased by 9.1% YoY. The CASA ratio stood at 39.2% in Q2FY26. Average current account deposits increased by 12.6% YoY, while average savings account deposits rose by 8.5% YoY.
The bank's capital adequacy ratio remained strong at 17.00% as of September 30, 2025, and its CET-1 ratio was 16.35%, both exceeding the minimum regulatory requirements of 11.70% and 8.20%, respectively.
ICICI Bank's branch network expanded to 7,246 branches and 10,610 ATMs and cash recycling machines as of September 30, 2025, with the addition of 263 branches during H1FY26.
The Board of Directors approved the appointment of Ms. Vijayalakshmi Iyer as an Additional (Independent) Director, effective December 1, 2025.
