ICICI Bank Q2 FY26 results: Net profit rises 5% to ₹12,359 crore

The profit exceeded expectations, supported by lower provisions for bad loans that helped offset a decline in treasury income

ICICI Bank Ltd on Saturday reported a 5 per cent year-on-year rise in standalone net profit for the quarter ended September for the financial year 2025-26, helped by lower provisions for bad loans that offset weaker treasury income.

 

The country’s second-largest private lender by market value posted a net profit of ₹12,359 crore ($1.40 billion) for the July–September quarter, up from ₹11,746 crore a year earlier. Analysts had estimated a profit of ₹12,236 crore, according to LSEG data.

 

Provisions for potential bad loans and other losses fell 26 per cent year-on-year to ₹914 crore, boosting the bottom line. Other income, which includes treasury gains, rose 5 per cent, even as treasury income dropped sharply to ₹220 crore from ₹680 crore a year earlier, as rising bond yields weighed on banks’ investment portfolios.

 

Net interest income — the difference between interest earned and paid — grew 7.4 per cent to ₹21,529 crore, supported by a 10 per cent rise in domestic advances. Lending to small and medium-sized businesses expanded the fastest, while growth in retail and large corporate segments remained muted. Deposits rose 7.7 per cent during the quarter.

 

The bank’s net interest margin (NIM) stayed flat at 4.3 per cent. Asset quality improved, with gross non-performing assets (GNPA) falling to 1.58 per cent from 1.67 per cent in the previous quarter.

 

Indian lenders have seen a gradual recovery in credit demand in recent months after a period of slowdown. Analysts expect the momentum to strengthen in the second half of the financial year, supported by recent tax cuts and improving consumption trends.

 

The Reserve Bank of India has reduced its benchmark interest rate by 100 basis points so far this year to stimulate growth. While lower rates are expected to spur borrowing, they also tend to compress banks’ margins in the short term, as lending rates fall faster than deposit rates.