“We continue to operate within the framework of our values to strengthen our franchise” – Sandeep Batra, ICICI Bank

ICICI Bank delivered strong quarterly earnings in the start of FY26, with net profit soaring 15.5% year-on-year to ₹12,768 crore, reflecting growth across core banking segments.

The bank’s net interest income (NII) increased by 10.6% year-on-year to ₹21,635 crore, while core operating profit rose by 13.6% year-on-year to ₹17,505 crore. The fee income saw a 7.5% year-on-year increase to ₹5,900 crore, with a strong contribution of 79% from retail, rural, and business banking segments.

Advertisement

While treasury gains amounted to ₹ 1,241 crore in Q1 FY26 as compared to ₹ 613 crore in Q1 FY25.

Sandeep Batra, Executive Director, ICICI Bank said, “At ICICI Bank, our strategic focus continues to be on growing profit before tax excluding treasury through the 360-degree customer centric approach and by serving opportunities across ecosystems and micromarkets. We continue to operate within the framework of our values to strengthen our franchise.”

Asset quality for the first quarter remained stable. The net NPA ratio was 0.41%, down from 0.43% a year earlier. The gross NPA ratio dropped from 2.15% in Q1 FY25 compared to 1.67% in Q1 FY26. The Gross NPA additions during the quarter stood at ₹6,245 crore, while recoveries and upgrades (excluding write-offs) were ₹3,211 crore.

The provisioning coverage ratio stood at 75.3%. Excluding NPAs, the total fund-based outstanding to all borrowers under resolution declined to ₹1,788 crore which is approximately 0.1% of total loan book, as of June 30, 2025. It has significantly decreased from ₹1,956 crore in Q4 FY25 and ₹2,735 crore Q1 FY25.

Provisions (excluding tax) were ₹1,815 crore, or 0.53% of average advances. The bank continues to carry ₹13,100 crore in contingency provisions, reinforcing its prudent risk management approach.

The asset growth continued to reflect ICICI Bank’s diversified approach. The total domestic loan portfolio grew by 12.0% year-on-year, driven by a 29.7% year-on-year increase in the business banking portfolio, 6.9% in retail loans, and 7.5% in corporate loans. The retail book accounted for 52.2% of total assets, with mortgages growing by 10.3% year-on-year and steady growth seen in credit cards and personal loans.

ICICI Bank’s total deposits grew by 12.8% year-on-year, reaching ₹16.08 lakh crore as of June 30, 2025. This growth was driven by a strong performance in both term deposits, which saw a 12.3% year-on-year increase, and CASA deposits, which grew by 13.6% year-on-year in Q1 FY26. The term deposits continued to represent a larger share of total deposits at 58.8%, while CASA deposits accounted for 41.2%. Average current account deposits rose by 11.2% year-on-year, indicating strong demand from business customers, while average savings account deposits grew by 7.6% year-on-year, reflecting healthy retail franchise growth. The average CASA ratio stood at 38.7%, highlighting the bank’s ability to maintain a cost-effective and stable funding base despite external market pressures.

“We aim to be the trusted financial services provider of choice for our customers and deliver sustainable returns to our shareholders,” Batra added, outlining the bank’s priorities.

ICICI Bank has expanded its presence in the quarter and has a network of total 7,066 branches and 13,376 ATMs across the country, as at June 30, 2025. This is aligned with the bank’s goal of expanding coverage across high-potential micromarkets and strengthening last-mile access.