ICICI Bank Ltd., the second-largest private sector lender in India, has announced a remarkable 15.9 per cent year-on-year increase in its standalone profit after tax (PAT), which reached ₹14,805 crore for the quarter ending June 30, 2026 (Q1 FY27). This performance has exceeded analysts’ expectations, primarily attributed to the bank’s strong growth in net interest income, robust credit expansion, and an improvement in asset quality.

The net interest income (NII), which represents the difference between interest earned and interest paid, saw a 12.7 per cent increase year-on-year, now reaching ₹24,384 crore. This figure reflects a consistent growth trend in lending activities, further accentuated by the improvement in the net interest margin (NIM), which has risen to 4.36 per cent compared to 4.32 per cent in the previous quarter and 4.34 per cent in Q1 FY26.

Additionally, the bank has recorded a noticeable reduction in provisioning during this quarter. Provisions, excluding tax, were reported at ₹1,260 crore, a decrease from ₹1,815 crore in the same period last year, indicating better asset quality and lower credit costs. ICICI Bank has also maintained a significant precautionary buffer, holding a contingency provision of ₹13,100 crore along with an additional standard asset provision of ₹1,283 crore, as required by the Reserve Bank of India’s guidelines.

Improved Asset Quality and Lower Non-Performing Assets

The asset quality of ICICI Bank has seen improvement during the quarter, with the Gross Non-Performing Asset (GNPA) ratio declining to 1.38 per cent as of June 30, 2026, down from 1.40 per cent at the end of March 2026, and 1.67 per cent from a year prior. The Net NPA ratio was recorded at 0.35 per cent, slightly up from 0.33 per cent in the previous quarter but lower than 0.41 per cent in June 2025, indicating a positive trend over a longer period.

In Q1 FY27, the bank saw gross NPA additions of ₹5,552 crore, down from ₹6,245 crore during the corresponding period last year. Recoveries and upgrades of non-performing assets were reported at ₹2,845 crore, and net additions to gross NPAs decreased to ₹2,707 crore, suggesting improved credit quality within the loan portfolio.

ICICI Bank also wrote off gross NPAs amounting to ₹1,673 crore during this quarter. The Provision Coverage Ratio (PCR) for non-performing loans remained strong at 74.7 per cent, indicative of the bank’s prudent approach to provisioning and risk management.

Robust Capital Position and Business Growth

The bank has maintained a formidable capital position, demonstrating a Total Capital Adequacy Ratio (CAR) of 16.84 per cent and a Common Equity Tier-1 (CET-1) ratio of 16.19 per cent, both substantially above the Reserve Bank of India’s minimum regulatory requirements of 11.70 per cent and 8.20 per cent, respectively.

Business growth remains impressive across various lending segments. Total advances increased by 19.6 per cent year-on-year, reaching ₹16.31 lakh crore as of June 30, 2026. The retail loan portfolio particularly showed a 12 per cent year-on-year growth, accounting for 49.2 per cent of the bank’s total loan offerings.

Other segments also experienced commendable growth, with the business banking portfolio expanding by 28.2 per cent, and the rural portfolio increasing by 35.4 per cent. The domestic corporate portfolio also rose by 18.5 per cent compared to the previous year, highlighting broad-based credit demand across multiple sectors.

On the liabilities front, total deposits at the end of the period grew by 14 per cent year-on-year, amounting to ₹18.34 lakh crore, providing a solid funding base for future lending initiatives. At a consolidated level, profit after tax saw an increase to ₹15,440 crore, up from ₹13,558 crore during the same quarter last year.

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