Leading private sector lender ICICI Bank reported a 20.1% year-on-year increase in standalone profit after tax (PAT) to ₹14,843 crore for the second quarter of FY27, compared with ₹12,359 crore in the corresponding quarter of the previous financial year, supported by strong net interest income, fee growth and an improvement in asset quality.
Net interest income (NII) rose 17.7% to ₹25,339 crore in Q2 FY27 from ₹21,529 crore a year earlier. However, net interest margin (NIM) moderated to 4.18% from 4.30% in Q2 FY26 and 4.36% in the preceding quarter.
Non-interest income, excluding treasury operations, increased 12.5% year-on-year to ₹8,277 crore from ₹7,356 crore in Q2 FY26.
Fee income grew 20.1% to ₹7,795 crore from ₹6,491 crore, with retail, rural and business banking customers accounting for approximately 75% of total fees during the quarter.
Operating expenses rose 8.5% to ₹12,811 crore from ₹11,807 crore in the year-earlier quarter.
The bank reported a treasury loss of ₹230 crore in Q2 FY27, compared with a gain of ₹220 crore in the corresponding quarter last year and ₹151 crore in Q1 FY27, primarily reflecting market movements.
Provisions, excluding tax provisions, declined to ₹851 crore from ₹914 crore a year earlier.
Loan book expands 30%
ICICI Bank’s total advances increased 30% year-on-year and 12.3% sequentially to ₹18.32 lakh crore as of September 30, 2026.
Excluding loans extended by its international branches against FCNR (B) deposits, advances grew 24.1% year-on-year and 7.3% sequentially.
The retail and rural loan portfolio increased 14.8% year-on-year and 3.2% sequentially, accounting for 51.6% of total advances at the end of September. Including non-fund-based outstanding, the segment represented 43% of the overall portfolio.
The business banking portfolio grew 33.8% year-on-year and 11.1% sequentially, while the domestic corporate portfolio expanded 30.6% and 10.4%, respectively.
Domestic advances rose 22.8% year-on-year and 6.8% sequentially. The overseas loan portfolio accounted for 7.8% of total advances.
The strong expansion in business banking and corporate lending contributed to the growth in the bank’s overall loan book.
Deposits cross ₹20 lakh crore
Total period-end deposits increased 27.1% year-on-year and 11.8% sequentially to ₹20.50 lakh crore as of September 30, 2026.
Excluding FCNR (B) deposits, the deposit base grew 17% year-on-year and 3.1% sequentially.
Average deposits rose 21.2% year-on-year and 8% sequentially to ₹18.88 lakh crore during Q2 FY27.
Average current account and savings account (CASA) deposits increased 10.7% year-on-year and 1.4% sequentially. The average CASA ratio stood at 35.8%, reflecting an increase in the term deposit base following FCNR (B) deposit inflows.
The bank added 145 branches during the first half of FY27, taking its network to 7,656 branches as of September 30, 2026. Its distribution network also included 12,143 ATMs and cash recycling machines.
Asset quality improves
ICICI Bank reported an improvement in asset quality, with its gross non-performing asset (NPA) ratio declining to 1.20% as of September 30, 2026, from 1.38% at the end of June 2026 and 1.58% a year earlier.
The net NPA ratio fell to 0.30% from 0.35% in the preceding quarter and 0.39% as of September 30, 2025.
Gross NPA additions stood at ₹4,833 crore in Q2 FY27, compared with ₹5,034 crore in the year-earlier quarter.
Recoveries and upgrades, excluding write-offs and sales, amounted to ₹3,620 crore, against ₹3,648 crore in Q2 FY26.
Consequently, net additions to gross NPAs, excluding write-offs and sales, declined to ₹1,213 crore from ₹1,386 crore a year earlier.
The bank wrote off gross NPAs worth ₹1,592 crore during the quarter. Its provisioning coverage ratio on non-performing loans stood at 75% as of September 30, 2026.
In addition, ICICI Bank continued to hold contingency provisions of ₹13,100 crore and additional standard asset provisions of ₹1,283 crore created in Q3 FY26, as directed by the Reserve Bank of India in respect of its agricultural priority sector portfolio.
Margins and treasury performance
Despite strong growth in net interest income, the bank’s NIM moderated to 4.18% in Q2 FY27 from 4.36% in Q1 FY27.
The benefit from interest on tax refunds was negligible during the September quarter, compared with eight basis points in the preceding quarter. Excluding this benefit, the NIM for Q1 FY27 was 4.28%.
The decline in reported NIM, alongside the treasury loss, contrasted with the growth in fee income and the improvement in asset quality.
The bank’s quarterly performance reflected continued expansion in advances and deposits, strong fee generation and lower NPA ratios.