India’s second-largest private sector lender, ICICI Bank, has kicked off FY26 on a strong footing, reporting a 15.5% year-on-year rise in standalone net profit for the April–June quarter (Q1 FY26). The performance exceeded market expectations, driven by robust growth in both retail and corporate lending segments.
Despite a slight dip in Net Interest Margins (NIMs) due to the rising cost of funds, the bank showcased healthy operating metrics, underscoring its consistent financial strength and focus on quality growth.
ICICI Bank Q1 2025: Profit, Income, and Margins Overview
ICICI Bank reported a standalone net profit of ₹12,768 crore, up from ₹11,953 crore in Q1 FY25. Consolidated profit stood at ₹13,558 crore, registering a 15.9% YoY growth.
- Total income (standalone) reached ₹51,452 crore, compared to ₹45,998 crore last year.
- Net Interest Income (NII) rose 10.6% to ₹21,635 crore.
- Core operating profit was ₹17,505 crore, up 13.6% YoY.
- Earnings per share (EPS) increased to ₹17.91 vs. ₹15.73 YoY.
Net Interest Margin (NIM) came in at 4.34%, slightly lower than 4.41% in Q4 FY25 and 4.36% a year ago. The bank expects minor NIM pressure going forward due to competitive rate dynamics.
ICICI Bank Asset Quality and Provisions Update
The lender showed improvement in asset quality despite provisioning more aggressively for future risks:
- Gross NPA ratio dropped to 1.67%, down from 2.15% a year earlier.
- Net NPA ratio improved to 0.41%.
- Provisions (excluding tax) rose to ₹1,815 crore, compared to ₹1,332 crore YoY and ₹890 crore in the previous quarter.
Management attributed the increase in provisions to a “precautionary buffer for macro uncertainties.”
Loan Growth, Deposits, and CASA Performance
ICICI Bank reported healthy growth in deposits and loans:
- Total deposits (period-end): ₹16.09 lakh crore, up 12.8% YoY.
- Average deposits: ₹15.33 lakh crore, up 11.2% YoY.
- Retail and corporate loans showed double-digit growth, supported by stable credit demand.
Key Financial Summary Table: ICICI Bank Q1 FY26
| Metric | Q1 FY26 (₹ crore) | YoY Growth |
|---|---|---|
| Net Profit (Standalone) | 12,768 | 15.5% |
| Net Interest Income (NII) | 21,635 | 10.6% |
| Core Operating Profit | 17,505 | 13.6% |
| Other Income | 8,505 | 21.5% |
| Gross NPA (%) | 1.67 | Improved |
| Net NPA (%) | 0.41 | Improved |
| Total Deposits | 16,08,517 | 12.8% |
| Provisions (excluding tax) | 1,815 | 36.2% |
| Return on Assets | 2.44 | — |
Management Commentary: ICICI Bank Outlook
The ICICI Bank leadership stated that the retail and mortgage segments remain strong, while caution continues around unsecured credit. The increase in provisions is a forward-looking measure for economic uncertainties.
While NIMs are expected to be under slight pressure in the short term, focus remains on profitable growth with prudent risk management. The bank also approved the acquisition of 100% shareholding in ICICI Prudential Pension Funds, indicating deeper integration of its financial services offerings.
Frequently Asked Questions (FAQs)
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What was ICICI Bank’s net profit in Q1 FY26?
₹12,768 crore on a standalone basis, and ₹13,558 crore consolidated.
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Has ICICI Bank’s asset quality improved?
Yes, both Gross and Net NPAs declined YoY and remained stable QoQ.
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What is ICICI Bank’s Net Interest Margin (NIM)?
NIM for Q1 FY26 stood at 4.34%, slightly lower than last quarter.
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Why did ICICI Bank increase its provisions?
Provisions were raised as a buffer against possible future uncertainties.
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Did ICICI Bank announce any strategic acquisitions?
Yes, it approved full acquisition of ICICI Prudential Pension Funds.
Conclusion
Finally, ICICI Bank Q1 FY26: A Balanced Quarter with Strong Growth Signals for Long-Term Investors.
ICICI Bank’s Q1 FY26 results reflect a well-rounded and resilient performance, marked by strong earnings growth, stable asset quality, and prudent provisioning. While a slight compression in Net Interest Margins (NIMs) is expected to persist due to rising funding costs, the bank continues to demonstrate strength across its retail and corporate lending portfolios.
The recent strategic acquisition of a pension fund signals its intent to diversify revenue streams, while its sustained focus on digital expansion and innovation positions it well for long-term scalability and efficiency.
Overall, ICICI Bank remains well-capitalized and operationally sound, with a positive long-term outlook despite short-term margin pressures.
