Strong Earnings Performance Surpasses Market Expectations
ICICI Bank Ltd has reported a notable 5.2% year-on-year (YoY) growth in standalone net profit, reaching ₹12,358.9 crore for the second quarter of FY26, compared to ₹11,745.9 crore in the corresponding period last year. This figure surpassed market projections, with a Moneycontrol poll forecasting only a 2.3% increase to ₹12,024 crore.
Robust Growth in Core Income Streams
The bank’s Net Interest Income (NII) — the crucial metric representing the difference between interest earned and interest expended — climbed to ₹21,529.5 crore, reflecting a 7.4% rise YoY from ₹20,048 crore. This performance edged out analysts’ expectations of ₹21,486 crore, underscoring the strength of ICICI Bank’s core lending business.
In terms of overall earnings, total income for the quarter expanded to ₹49,333.5 crore, up from ₹47,714 crore in Q2 FY25. Additionally, other income also recorded an increase, standing at ₹7,575.5 crore versus ₹7,176.7 crore a year earlier.
Improvement in Asset Quality
The quarter also saw a significant improvement in asset quality, a key indicator of financial health. Gross Non-Performing Assets (GNPA) declined to ₹23,849.7 crore as of September 30, 2025, compared with ₹27,121.2 crore in the same quarter of the previous year. This brought the GNPA ratio down to 1.58% from 1.97%, suggesting better credit discipline and recovery mechanisms.
The Net NPA (NNPA) ratio also saw a marginal improvement, easing to 0.39% from 0.42%. In absolute terms, Net NPAs stood at ₹5,827 crore, slightly up from ₹5,685 crore in Q2 FY25, but the ratio indicates efficient management of bad assets.
Reduced Provisions and Enhanced Capital Adequacy
Reflecting a healthier credit environment, provisions and contingencies dropped sharply by 26% YoY, amounting to ₹914 crore as against ₹1,233 crore in the same quarter last year. This decline is a direct reflection of reduced credit risk and improved asset quality.
Meanwhile, the bank’s Capital Adequacy Ratio (CAR) under Basel III norms improved to 15.76%, compared to 15.35% in the year-ago quarter, showcasing a stronger capital position to support future growth.
Stable Profitability and Strengthened Net Worth
In terms of profitability metrics, the Return on Assets (RoA) remained steady at 2.36%, slightly lower than the 2.40% recorded last year, but still strong for a lender of ICICI Bank’s size. The bank’s net worth witnessed a solid rise, growing from ₹2,50,418 crore to ₹3,01,628 crore over the past year — a reflection of retained earnings and capital accumulation.
