FILE PHOTO: ICICI Bank reported a 20.1 per cent rise in second-quarter net profit to ₹14,843 crore, while its net interest margin declined to 4.18 per cent. | Photo Credit: SHAILESH ANDRADE

ICICI Bank reported a 20.1 per cent year-on-year increase in net profit to ₹14,843 crore for the quarter ended September 30, 2026, driven by strong growth in net interest income (NII). The bank posted a profit after tax (PAT) of ₹12,359 crore in the corresponding quarter of the previous fiscal year. However, PAT remained largely flat sequentially.

Net interest income rises 17.7 per cent

The bank’s net interest income (NII), the difference between interest earned and interest paid, rose 17.7 per cent to ₹R25,338.7 crore during the reporting quarter, compared with ₹21,529.5 crore a year earlier. On a quarter-on-quarter basis, NII increased 3.9 per cent to ₹24,384.4 crore.

Loan book expands 30 per cent

ICICI Bank’s loan book expanded 30 per cent year-on-year to ₹18.3 lakh crore in the second quarter of FY27, compared with ₹14.08 lakh crore in the same period last year. Advances grew 12 per cent sequentially. Excluding the leverage provided on FCNR(B) loans, the bank’s lending grew 24.1 per cent year-on-year and 7.3 per cent quarter-on-quarter.

Deposits grow on FCNR(B) inflows

Deposits rose 27.1 per cent to ₹20.4 lakh crore in the quarter under review, up from ₹16 lakh crore in the year-ago period. Sequentially, deposits rose 11.8 per cent to ₹18 lakh crore from ₹16 lakh crore in the previous quarter.

FCNR(B) inflows contributed significantly to deposit growth. Excluding these NRI inflows, total deposits grew 17 per cent year-on-year and 3.1 per cent quarter-on-quarter as of September 30, 2026.

Net interest margin contracts

Despite strong profitability and business growth, the bank’s margins came under pressure. Net interest margin (NIM) fell to 4.18 per cent in the reporting quarter, down from 4.30 per cent in the year-ago period, a contraction of 12 basis points. The Q2 NIM was also 18 basis points lower than the 4.36 per cent recorded in the previous quarter. Excluding the benefit of interest income from a tax refund, the bank’s NIM stood at 4.28 per cent in the preceding quarter. On this adjusted basis, NIM fell by about 10 basis points in Q2.

Addressing the margin contraction, ICICI Bank Executive Director Sandeep Batra said the decline was largely attributable to the cost of FCNR(B) inflows. “Talking of the decline from 4.28 per cent to 4.18 per cent, it is largely a function of FCNR(B), which results in a higher deposit base and a lower CASA ratio,” Batra said during the media call.

Published on October 17, 2026