ICICI Bank Ltd., one of India’s leading private sector lenders, reported a steady and resilient performance for the second quarter of fiscal year 2026. The bank posted a 5.2% year-on-year (YoY) increase in standalone net profit to Rs. 12,359 crore, driven by healthy loan growth and a significant improvement in asset quality, with non-performing asset (NPA) ratios hitting multi-year lows.
The results, which comfortably beat analyst expectations, showcase the bank's continued focus on building a strong retail franchise and maintaining disciplined risk management in a competitive environment. For investors, the performance reaffirms ICICI Bank's position as a consistent, reliable performer in the Indian banking sector.
Table of Contents
- How Did ICICI Bank Perform in Q2 FY26?
- What Fueled the Bank's Growth This Quarter?
- Asset Quality: The Standout Positive
- Balance Sheet Health: Advances, Deposits, and Capital
- The Investor’s Bottom Line: Key Takeaways
- Frequently Asked Questions (FAQs)
ICICI Bank's Q2 performance was marked by stable profitability and efficient cost management. The bank’s core operating profit grew by a healthy 6.5% YoY to Rs 17,078 crore.
Key Financial Highlights for Q2 FY26
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The bank’s Net Interest Income (NII), the core measure of its earnings from lending, grew by 7.4% YoY. The Net Interest Margin (NIM) remained stable at 4.30%, reflecting the bank's ability to manage its lending yields and funding costs effectively.
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The bank's growth was primarily driven by the sustained expansion of its loan book, particularly in the retail segment.
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Retail Loan Growth: The retail loan portfolio, which includes home loans, personal loans, and credit cards, grew by 6.6% YoY and now comprises over 52% of the total loan book. This reflects strong consumer credit demand.
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SME and Business Banking: The business banking portfolio was another strong contributor, growing by a robust 24.8% YoY.
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Digital Momentum: The bank’s "ICICI Stack" ecosystem continues to gain traction, supporting digital lending and partnerships with millions of retail and SME customers.
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The most significant highlight of the quarter was the continued improvement in asset quality, with NPA ratios reaching their best levels in years.
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Gross NPA (GNPA): The GNPA ratio improved sharply to 1.58%, down from 1.97% in the same quarter last year.
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Net NPA (NNPA): The Net NPA ratio declined to a multi-year low of 0.39%, compared to 0.42% a year ago.
This remarkable improvement reflects the bank's prudent underwriting standards, strong risk management framework, and healthy recoveries from past slippages. The bank’s Provision Coverage Ratio (PCR) stood at a comfortable 80.7%, providing a strong buffer against potential credit losses.
ICICI Bank’s balance sheet remained robust, with broad-based growth across both its assets and liabilities.
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Advances: Total advances grew by a healthy 10.3% YoY to Rs. 14.08 lakh crore.
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Deposits: Total deposits increased by 7.7% YoY to Rs. 16.12 lakh crore. The CASA (Current Account and Savings Account) ratio moderated slightly to 39.2%, reflecting a market-wide shift by depositors towards higher-yield term deposits in a rising interest rate environment.
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Capital Adequacy: The bank remains very well-capitalised, with a Capital Adequacy Ratio (CAR) of 17.0% and a CET-1 ratio of 16.35%, well above the regulatory requirements. This provides ample capacity for future loan growth.
ICICI Bank's Q2 results reaffirm its position as one of India’s most consistent and well-managed private sector banks.
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Steady and Predictable Growth: The bank continues to deliver stable profit growth, driven by a strong retail franchise.
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Best-in-Class Asset Quality: The multi-year low NPA ratios are a testament to the bank's disciplined risk management.
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Strong Capital Position: A robust capital base ensures the bank is well-equipped for future growth.
For investors, ICICI Bank remains a core holding in the financial sector, offering a blend of stability, growth, and strong governance.
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1. What was ICICI Bank’s net profit in Q2 FY26?
ICICI Bank reported a standalone net profit of Rs. 12,359 crore, a 5.2% increase year-on-year.
2. How did ICICI Bank’s asset quality change this quarter?
The bank's asset quality improved significantly. The Gross NPA ratio declined to 1.58%, and the Net NPA ratio fell to a multi-year low of 0.39%.
3. What was the bank's Net Interest Margin (NIM)?
The Net Interest Margin (NIM) for the quarter was stable at 4.30%.
4. How did the bank's loan and deposit books grow?
Total advances grew by 10.3% YoY, while total deposits grew by 7.7% YoY.
5. What is ICICI Bank’s capital adequacy position?
The bank maintains a strong capital position, with a Capital Adequacy Ratio (CAR) of 17.0% and a CET-1 ratio of 16.35%.