ICICI Bank reported a 20.1% year-on-year rise in standalone net profit to Rs 14,843.03 crore for the September quarter of FY27. The bank announced the result on Saturday. Profit in the same quarter a year earlier was Rs 12,358.89 crore.
Net interest income, the difference between interest earned and interest expenses, increased 17.7% year on year to Rs 25,339 crore, from Rs 21,529 crore a year earlier. Net interest margin (NIM) fell to 4.18% in the second quarter, from 4.36% in the first quarter and 4.30% in the second quarter of FY26.
FEE INCOME DRIVES NON-INTEREST GROWTH
Non-interest income, excluding treasury, rose 12.5% year on year to Rs 8,277 crore, from Rs 7,356 crore in Q2 FY26. Fee income grew 20.1% to Rs 7,795 crore from Rs 6,491 crore, with retail, rural and business banking customers accounting for about 75% of total fees.
Operating expenses increased 8.5% year on year to Rs 12,811 crore. Provisions, excluding tax, stood at Rs 851 crore, against Rs 914 crore in Q2FY26. The benefit of interest on tax refund was negligible in Q2FY27, compared with 8 basis points in Q1FY27 and negligible in Q2FY26.
ASSET QUALITY IMPROVES ON EVERY RATIO
The gross non-performing assets (NPA) ratio stood at 1.20% as of 30 September 2026, compared with 1.38% at 30 June 2026 and 1.58% a year earlier. The net NPA ratio was 0.30%, against 0.35% in the previous quarter and 0.39% a year earlier.
Gross NPA additions in the quarter were Rs 4,833 crore, compared with Rs 5,034 crore a year ago. Recoveries and upgrades, excluding write-offs and sale, were Rs 3,620 crore, against Rs 3,648 crore, leaving net additions of Rs 1,213 crore, down from Rs 1,386 crore. The bank wrote off gross NPAs of Rs 1,592 crore, and its provisioning coverage ratio on non-performing loans was 75%.
The bank held total provisions, other than specific provisions on fund-based outstanding to borrowers classified as non-performing, of Rs 23,815 crore, or 1.3% of loans. These include 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.
ADVANCES OUTPACE DEPOSIT GROWTH
Total advances increased 30% year on year and 12.3% sequentially to Rs 18,31,580 crore at 30 September 2026. Total period-end deposits rose 27.1% year on year and 11.8% sequentially to Rs 20,49,874 crore. The average current account and savings account (CASA) ratio was 35.8%, which the bank said reflected a larger term deposit base due to FCNR (B) deposit inflows.
Domestic advances grew 22.8% year on year and 6.8% sequentially. The retail and rural loan portfolio rose 14.8% year on year and 3.2% sequentially, and made up 51.6% of total loans. Business banking grew 33.8% year on year and 11.1% sequentially, while the corporate portfolio grew 30.6% and 10.4% respectively.
CAPITAL BUFFERS AND GROUP EARNINGS
The total capital adequacy ratio was 16.68% and the Common Equity Tier 1 (CET-1) ratio 16.01% as of 30 September 2026, against minimum regulatory requirements of 11.70% and 8.20% respectively. During the quarter the bank bought an additional 2% stake in ICICI Life Insurance Ltd for Rs 1,470 crore.
On a consolidated basis, profit after tax increased 22.3% year on year to Rs 16,333 crore. Consolidated assets grew 22.6% to Rs 32,92,953 crore, the bank said.
Related: India's ICICI Bank reports 16% rise in Q1 FY27 standalone net profit to ₹14,805 crore