ICICI Bank Q1 results: Net profit rises 15.9% to Rs 14,805 crore; asset quality stays stable

ICICI Bank Ltd on Saturday reported a 15.9 per cent year-on-year (YoY) rise in net profit at Rs 14,805 crore for the June quarter, compared with Rs 12,768 crore in the corresponding quarter last year. The private lender said its net interest income (NII) jumped 12.7 per cent YoY to Rs 24,384 crore from Rs  21,635 crore in the year-ago quarter. Net interest margin (NIM) for the quarter came in at 4.36 per cent against 4.32 per cent in the March quarter and 4.34 per cent in the year-ago quarter.

ICICI Bank said non-interest income, excluding treasury, increased 16 per cent YoY to Rs 8,425 crore in the June quarter from Rs 7,264 crore a year earlier. Fee income rose 23.5 per cent YoY to Rs 7,286 crore from Rs 5,900 crore, with fees from retail, rural and business banking customers contributing about 72 per cent of the total.

Operating expenses increased 10.4 per cent YoY to Rs 12,574 crore from Rs 11,394 crore. The bank reported a treasury gain of Rs 151 crore in Q1FY27 against a treasury loss of Rs 106 crore in Q4FY26 and a gain of Rs 1,241 crore in the year-ago quarter. Provisions, excluding tax, declined to Rs 1,260 crore from Rs 1,815 crore YoY, ICICI Bank said.

As on June 30, the bank continued to hold contingency provisions of Rs 13,100 crore and an additional standard asset provision of Rs 1,283 crore, created in Q3FY26 as directed by the RBI for the agricultural priority sector portfolio.

ICICI Bank said its asset quality remained stable during the June quarter. The gross non-performing asset (GNPA) ratio improved to 1.38 per cent as on June 30, 2026, from 1.67 per cent YoY and 1.40 per cent QoQ. The net non-performing asset (NNPA) ratio declined to 0.35 per cent from 0.41 per cent YoY but edged up from 0.33 per cent in the preceding quarter.

Gross NPA additions declined to Rs 5,552 crore from Rs 6,245 crore YoY. Recoveries and upgrades of NPAs, excluding write-offs and sales, stood at Rs 2,845 crore against Rs 3,211 crore a year earlier. Net additions to gross NPAs, excluding write-offs and sales, fell to Rs 2,707 crore from Rs 3,034 crore YoY. The bank wrote off gross NPAs worth Rs 1,673 crore during the quarter. Its provisioning coverage ratio (PCR) on non-performing loans stood at 74.7 per cent as on June 30, 2026.

As on June 30, 2026, ICICI Bank held total provisions of Rs 22,963 crore, excluding specific provisions on fund-based exposure to borrowers classified as non-performing, equivalent to 1.4 per cent of its loan book. These included contingency provisions of Rs 13,100 crore, along with general provisions on standard assets, provisions for non-fund-based exposure to non-performing borrowers, loans and non-fund-based exposure to standard borrowers under resolution, and the BB-and-below-rated portfolio.

"Total advances increased by 19.6 per cent year-on-year and 5 per cent sequentially to Rs 16,31,260 crore (US$ 172.3 billion) at June 30, 2026. The retail loan portfolio grew by 12 per cent yearon-year and 2.7 per cent sequentially, and comprised 49.2 per cent of the total loan portfolio at June 30, 2026. Including non-fund outstanding, the retail portfolio was 41.1 per cent of the total portfolio at June 30, 2026," ICICI Bank said.

"The business banking portfolio grew by 28.2 per cent year-on-year and 6.9 per cent sequentially at June 30, 2026. The rural portfolio grew by 35.4 per cent year-on-year and 6.2 per cent sequentially at June 30, 2026. The domestic corporate portfolio grew by 18.5% year-on-year and 6.9% sequentially at June 30, 2026. The domestic advances grew by 18.8 per cent year-on-year and 4.6 per cent sequentially at June 30, 2026," it added.

The bank also continued to hold an additional standard asset provision of Rs 1,283 crore, created in Q3FY26 as directed by the RBI for its agricultural priority sector portfolio.