ICICI Bank Reports 14.5 Percent Surge in Q2 Profit Driven by Strong Loan Growth

ICICI Bank Reports 14.5 Percent Surge in Q2 Profit Driven by Strong Loan Growth

ICICI Bank has announced a robust 14.5 percent year-on-year increase in its net profit for the September quarter, reaching Rs 11,746 crore. This impressive performance was supported by strong loan growth and enhancements in asset quality, surpassing market expectations. Analysts had projected profits at Rs 10,952 crore according to Bloomberg estimates.

During the September quarter of the current financial year, ICICI Bank's net interest income, which is the difference between the interest earned and the interest paid, rose by 9.5 percent to Rs 20,048 crore. This figure reflects an increase from Rs 18,308 crore reported in the same quarter of the previous fiscal year. However, the bank's net interest margin (NIM) saw a decline, shrinking to 4.27 percent in the first quarter compared to 4.53 percent in the same quarter the previous year. Despite this dip, the bank expects NIM to remain stable until there is a shift in the interest rate cycle.

Sandeep Batra, Executive Director of ICICI Bank, indicated during an earnings call that the bank's overall objective is to maximize profitability through various strategies, with NIM being one of several key factors along with fees, expenses, and provisions. He assured stakeholders that the bank would continue to optimize these levers to achieve the best possible outcomes for customers and shareholders alike.

In terms of loan growth, total advances saw a significant increase of 15 percent year-on-year and 3.3 percent sequentially, totaling Rs 12.77 lakh crore as of September 30. The retail loan portfolio, which is a critical component of the bank's lending strategy, grew by 14.2 percent year-on-year and 2.9 percent sequentially, constituting 53 percent of the total loan portfolio. Additionally, the business banking portfolio exhibited remarkable growth, rising by 30 percent year-on-year and 10.7 percent sequentially. The rural loan portfolio also demonstrated strength, growing by 16.5 percent year-on-year and 1.7 percent sequentially, while the domestic corporate portfolio expanded by 11.8 percent year-on-year and 4.9 percent sequentially.

While ICICI Bank has moderated its growth in the unsecured lending sector, the personal loan portfolio recorded a notable increase of 17.3 percent, and the credit card segment surged by 28 percent year-on-year.

On the deposits front, ICICI Bank reported a year-on-year increase of nearly 16 percent, reaching Rs 14.97 lakh crore as of September 30. The bank's term deposits rose by 16 percent year-on-year and 5.5 percent sequentially to Rs 8.89 lakh crore.

The bank's asset quality has improved, with its gross non-performing assets (NPA) ratio declining to 1.97 percent as of September 30, down from 2.15 percent at June 30, 2024. The net NPA ratio also slightly decreased to 0.42 percent from 0.43 percent over the same period. Provisions increased to Rs 1,233 crore in Q2-2025, compared to Rs 583 crore in Q2-2024 and Rs 1,332 crore in Q1-2025. Notably, recoveries and upgrades of NPAs, excluding write-offs and sales, reached Rs 3,319 crore in Q2-2025, up from Rs 3,292 crore in Q1-2025.