ICICI Bank Ltd., India’s second-largest private sector lender, reported a 15.9% year-on-year increase in standalone profit after tax (PAT) to ₹14,805 crore for the quarter ended June 30, 2026 (Q1 FY27), surpassing analysts’ expectations. The strong quarterly performance was driven by healthy growth in net interest income, robust credit expansion, improving asset quality and lower provisioning requirements.
The bank’s Net Interest Income (NII), the difference between interest earned and interest paid, rose 12.7% year-on-year to ₹24,384 crore, reflecting sustained growth in lending activities. Net Interest Margin (NIM) improved to 4.36%, compared with 4.32% in the previous quarter and 4.34% in the corresponding quarter last year, indicating continued strength in the bank’s core lending business.
ICICI Bank reported a significant decline in provisioning during the quarter. Provisions (excluding tax) stood at ₹1,260 crore, down from ₹1,815 crore in the year-ago period, supported by better asset quality and lower credit costs. The bank also maintained a strong precautionary buffer, retaining a contingency provision of ₹13,100 crore along with an additional standard asset provision of ₹1,283 crore, created during Q3 FY26 in compliance with the Reserve Bank of India’s (RBI) directions concerning the agricultural priority sector portfolio.
Asset quality continued to improve during the quarter. The Gross Non-Performing Asset (GNPA) ratio declined to 1.38% as of June 30, 2026, compared with 1.40% at the end of March 2026 and 1.67% a year earlier. The Net NPA ratio stood at 0.35%, marginally higher than 0.33% in the previous quarter but lower than 0.41% recorded in June 2025, indicating continued improvement over the longer term.
During Q1 FY27, the bank recorded gross NPA additions of ₹5,552 crore, lower than ₹6,245 crore reported during the same period last year. Recoveries and upgrades of non-performing assets, excluding write-offs and sales, amounted to ₹2,845 crore, while net additions to gross NPAs declined to ₹2,707 crore, reflecting better credit quality across the loan portfolio.
ICICI Bank also wrote off gross NPAs worth ₹1,673 crore during the quarter. The Provision Coverage Ratio (PCR) on non-performing loans remained healthy at 74.7%, highlighting the bank’s prudent provisioning policy.
Apart from specific provisions on NPAs, the bank held total provisions of ₹22,963 crore, equivalent to 1.4% of total loans, covering contingency reserves, standard asset provisions and non-fund-based exposures. These additional buffers strengthen the bank’s resilience against potential future credit risks.
The bank maintained a strong capital position, with a Total Capital Adequacy Ratio (CAR) of 16.84% and a Common Equity Tier-1 (CET-1) ratio of 16.19%, comfortably exceeding the RBI’s minimum regulatory requirements of 11.70% and 8.20%, respectively.
Business growth remained robust across lending segments. Total advances increased 19.6% year-on-year and 5% sequentially to ₹16.31 lakh crore as of June 30, 2026. The retail loan portfolio grew 12% year-on-year and accounted for 49.2% of the bank’s overall loan book.
Other business segments also recorded strong growth. The business banking portfolio expanded 28.2%, the rural portfolio grew 35.4%, while the domestic corporate portfolio increased 18.5% compared to the previous year. Overall, domestic advances rose 18.8% year-on-year, reflecting broad-based credit demand across sectors.
On the liabilities side, total period-end deposits increased 14% year-on-year to ₹18.34 lakh crore, providing a strong funding base to support future lending growth. At the consolidated level, profit after tax increased to ₹15,440 crore, compared with ₹13,558 crore in the corresponding quarter of the previous financial year.
The latest quarterly performance underscores ICICI Bank’s strong operational execution, healthy balance sheet and disciplined risk management. Supported by improving asset quality, stable margins, strong capitalisation and diversified credit growth, the bank remains well-positioned to sustain its growth momentum amid India’s expanding banking and financial services sector.
Disclaimer: This report has been editorially prepared using publicly available information and official company disclosures. Readers are advised to refer to ICICI Bank’s official financial statements and regulatory filings for complete details.
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