ICICI Bank Q2 results: Net profit jumps 20% to Rs 14,843 crore; NIM contracts

ICICI Bank Ltd on Saturday reported a 20.1 per cent year-on-year (YoY) rise in net profit at Rs 14,843.03 crore for the September quarter compared with Rs 12,358.89 crore in the same quarter last year.

Net interest income (NII), the difference between interest earned and interest expenses, jumped 17.7 per cent YoY to Rs 25,339 crore in the second quarter from Rs 21,529 crore a year earlier. Net interest margin (NIM) fell to 4.18 per cent in Q2 from 4.36 per cent in Q1 and 4.3 per cent in the year-ago quarter.

"The benefit of interest on tax refund was negligible in Q2FY27 compared to 8 basis points in Q1FY27 and negligible in Q2FY26. Excluding the benefit of interest on tax refund, the net interest margin was 4.28 per cent in Q1-2027," ICICI Bank said.

Provisions, excluding tax stood at Rs 851 crore in Q2FY27, compared with Rs 914 crore in Q2FY26. As of September 30, the bank continued to hold contingency provisions of Rs 13,100 crore and additional standard asset provisions of Rs 1,283 crore made in Q3FY26, as directed by the RBI, for its agricultural priority sector portfolio.

Non-interest income, excluding treasury, increased 12.5 per cent YoY to Rs 8,277 crore in Q2 FY27 from Rs 7,356 crore in Q2 FY26. Fee income rose 20.1 per cent YoY to Rs 7,795 crore from Rs 6,491 crore. Fees from retail, rural and business banking customers accounted for about 75 per cent of total fees in Q2 FY27.

ICICI Bank said its gross non-performing assets (NPA) ratio stood at 1.20 per cent as of September 30, 2026, compared with 1.38 per cent as of June 30, 2026, and 1.58 per cent a year earlier. The net NPA ratio was 0.30 per cent, compared with 0.35 per cent in the previous quarter and 0.39 per cent a year earlier.

Gross NPA additions stood at Rs 4,833 crore in Q2, compared with Rs 5,034 crore in Q2. Recoveries and upgrades, excluding write-offs and sale, stood at Rs 3,620 crore, compared with Rs 3,648 crore a year earlier. Net additions to gross NPAs, excluding write-offs and sale, stood at Rs 1,213 crore, against Rs 1,386 crore in Q2. The bank wrote off gross NPAs worth Rs 1,592 crore during Q2. The provisioning coverage ratio on non-performing loans stood at 75 per cent as of September 30, 2026.

The bank’s total capital adequacy ratio stood at 16.68 per cent as of September 30, 2026, while its Common Equity Tier 1 (CET-1) ratio was 16.01 per cent, compared with minimum regulatory requirements of 11.70 per cent and 8.20 per cent, respectively.

The bank purchased an additional 2 per cent stake in ICICI Life Insurance Ltd for Rs 1,470 crore during Q2.