ICICI Bank, India’s second-largest private sector lender, on Saturday reported a 15 percent year-on-year increase in net profit to Rs 12,768.21 crore for the fiscal first quarter, beating analyst expectations. NII -- the difference between interest earned and interest expended -- stood at Rs 21,634.46 crore for the June quarter, up 8.4 percent on-year.
According to a Moneycontrol poll, the Street had projected an 8 percent YoY growth in NII to Rs 21,091 crore and a 9.5 percent rise in net profit to Rs 12,112 crore for ICICI Bank in the April-June quarter.
Ahead of the results, on Friday, ICICI Bank results rose 0.56 percent to end at Rs 1,426.7 on NSE.
The bank’s core operating profit rose 13.6 percent year-on-year to Rs 17,505 crore, while profit before tax (excluding treasury gains) increased 11.4 percent YoY to Rs 15,690 crore in Q1. Total income (standalone) rose to Rs 51,451.81 crore, compared to Rs 45,997.70 crore in the year-ago period. Other income surged to Rs 8,504.90 crore from Rs 7,001.92 crore a year earlier.
Asset quality
Asset quality improved year-on-year. The gross NPA ratio declined to 1.67 percent from 2.15 percent in the year-ago quarter. Net NPA ratio also fell to 0.41 percent from 0.43 percent YoY. Sequentially, however, both gross and net NPA ratios remained stable.
The gross NPA additions were Rs 6,245 crore (US$ 728 million) in April-June quarter, compared to Rs 5,916 crore (US$ 690 million) in a year ago period, according to the press release.
Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,211 crore (US$ 374 million) in Q1FY26 compared to Rs 3,292 crore (US$ 384 million) in Q1FY25.
The net additions to gross NPAs, excluding write-offs and sale, were Rs 3,034 crore (US$ 354 million) in Q1FY26 compared to Rs 2,624 crore (US$ 306 million) in Q1FY25. The Bank has written-off gross NPAs amounting to Rs 2,359 crore (US$ 275 million) in Q1FY26. The provisioning coverage ratio on non-performing loans was 75.3 percent at June 30, 2025.
At June 30, 2025, the Bank holds total provisions, other than specific provisions on fund based outstanding to borrowers classified as non-performing, amounting to Rs 22,664 crore (US$ 2.6 billion) or 1.7 percent of loans, release said.
Deposit and advances
Total period-end deposits increased by 12.8 percent on-year to Rs 16,08,517 crore (US$ 187.6 billion) at June 30, 2025 (Rs 16,10,348 crore (US$ 187.8 billion) at March 31, 2025).
Average deposits increased by 11.2 percent on-year and 3.1 percent sequentially to Rs 15,33,241
crore (US$ 178.8 billion) in Q1FY26. Average current account deposits increased by 11.2 percent on-year and 4.6 percent sequentially in Q1FY26. Average savings account deposits increased by 7.6 percent year-on-year and 3.6 percent sequentially in Q1FY26.
As of June 30, 2025, total advances rose to Rs 13.64 lakh crore. The average CASA ratio stood at 38.7 percent.
The bank’s capital adequacy ratio under Basel III norms stood at 16.31 percent, slightly lower than 16.55 percent in the March quarter.
Acquisition update: ICICI PFM to become wholly owned unit
The board also approved the acquisition of ICICI Prudential Pension Funds Management Company Limited (ICICI PFM) from ICICI Prudential Life Insurance Company, making it a wholly owned subsidiary of the bank. ICICI PFM had total assets of Rs 592.6 million and a net loss of Rs 35.4 million in FY25.
The transaction, considered a related party deal but to be executed at arm’s length, involves a cash consideration of Rs 203.5 crore and is subject to approvals from the RBI and PFRDA. The bank said this move aligns with its 'Customer 360' strategy and would enhance synergies in pension fund management.
Consolidated performance strong
On a consolidated basis, ICICI Bank reported a net profit of Rs 13,557.6 crore for Q1 FY26, up 15.9 percent from Rs 11,695.8 crore in the year-ago period. Total consolidated income stood at Rs 74,576.03 crore. Insurance subsidiaries ICICI Prudential Life and ICICI Lombard General contributed positively to the overall performance, with the group’s total capital employed rising to over Rs 3.29 lakh crore.
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