ICICI Bank to benefit from improved asset quality, healthy loan growth

Lower provisions, healthy margins, and steady advances drive ICICI Bank's performance; management expects NIMs to remain stable in coming quarters

ICICI Bank delivered satisfactory results in the second quarter of 2025-26 (Q2FY26), sustaining return on assets (RoA) of around 2.3-2.4 per cent and improving asset quality. Provisions declined 26 per cent year-on-year (Y-o-Y) and 50 per cent quarter-on-quarter (Q-o-Q). Deposit costs have declined 36 basis points (bps) in the first half of the financial year (H1FY26), enabling 3 bps Q-o-Q expansion in adjusted net interest margin (NIM).

 

The Q2FY26 net profit grew 5.2 per cent Y-o-Y to ₹12,360 crore due to lower provisions and strong margins. The net interest income (NII) was up 7 per cent Y-o-Y and flat Q-o-Q