ICICI Bank Q2 Profit Rises 20% to ₹14,843 Crore as Loans Grow 30%

ICICI Bank’s standalone net profit rose 20.1% YoY to Rs. 14,843 crore in the Sept quarter of FY27. Higher loans and lower provisions helped the bank achieve this profit. In the same period last year, the bank had reported profits of Rs. 12359 Cr. The bank declared results on Saturday, 17th of October.

Net interest income (NII) rose 17.7% to ₹25,339 crore from ₹21,529 crore a year earlier. Core operating profit, which excludes treasury income, increased 21.8% to ₹20,805 crore, while profit before tax grew 20.4% to ₹19,724 crore.

Net interest margin, however, narrowed to 4.18% from 4.30% a year ago and 4.36% in the June quarter, a sequential decline of 18 basis points.

Loan book expands 30%

Advances increased by 30% to reach 18.32 lakh crore as on 30th Sept 2026. Growth in Advances stood at 24.1% when adjusted for the effect of FCNR-B.

Deposits rose 27.1% to ₹20.50 lakh crore. Excluding FCNR-B deposits, deposit growth stood at 17%, indicating that a meaningful share of the quarter’s balance-sheet expansion came from foreign currency funding.

Asset quality continued to strengthen. The gross non-performing asset (NPA) ratio fell to 1.20% from 1.58% a year earlier, and the net NPA ratio declined to 0.30% from 0.39%. The improvement was reflected in lower provisions for bad loans during the quarter, which supported the bottom line.

On a consolidated basis, which includes the bank’s insurance, asset management and securities subsidiaries, net profit rose about 22% to ₹16,333 crore from ₹13,357 crore. Consolidated total assets grew 22.6% to ₹32.93 lakh crore.

Outpaces larger rival HDFC Bank

This is opposite to HDFC Bank who announced their results for Sep quarter today. HDFC Bank saw its Net Profit grow by 4.7% at Rs 19510 Cr while its NII increased by 9.7%. This is in comparison to ICICI Bank where the profits increased by 20.1% and NII by 17.7%.

Their advances also grew much slower at 16.3% YoY as compared to ICICI Banks. Both lenders, however, reported lower gross NPA ratios than a year ago, pointing to stable credit conditions across large private banks.

For ICICI Bank, India’s second-largest private sector lender, the quarter’s earnings growth came from higher loan volumes and lower credit costs, as margins contracted both year-on-year and sequentially. The expansion of its foreign currency deposit base accounts for the difference between reported and adjusted growth in both loans and deposits, and the sustainability of that funding will be closely tracked.

Shares of ICICI Bank will react to the results when markets reopen on Monday. Investors will look for management commentary on the margin outlook for the second half of FY27, the sustainability of loan growth at current levels, and the trajectory of credit costs as the lending cycle matures.