ICICI Bank Ltd (IBN) Price

ICICI Bank Reports Profit Growth in Second Quarter FY26

ICICI Bank Posts Steady Growth in Q2 FY26 Earnings ICICI Bank Limited (IBN) announced its financial results for the second quarter of fiscal year 2026, revealing consistent growth across key profitability indicators. The Mumbai-headquartered private sector bank reported a 9.1% year-on-year increase in profit before tax (excluding treasury) to INR 161.64 billion. Concurrently, its core operating profit advanced by 6.5% year-on-year, reaching INR 170.78 billion, underscoring the strength of its fundamental operations. Profit after tax (PAT) for the quarter rose by 5.2% year-on-year to INR 123.59 billion. Detailed Financial Performance The reported net profit of ₹12,359 crore for the July–September quarter marked a 5% increase from ₹11,746 crore in the same period a year prior, exceeding analyst expectations of ₹12,236 crore, according to LSEG data. This performance was supported by a 7.4% rise in net interest income (NII), which reached ₹21,529 crore, propelled by a 10% increase in domestic advances. Managing Director and CEO Sandeep Bakhshi articulated the bank's foundational strategy during the earnings call: > 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 micro markets. We continue to operate within the framework of our values to strengthen our franchise. Maintaining high standards of governance, deepening coverage and enhancing the delivery capabilities with a focus on simplicity and operational resilience are key drivers for our risk-calibrated profitable growth. The bank's balance sheet also reflected positive trends, with average deposits growing by 9.1% year-on-year and 1.6% sequentially. Average current and savings account (CASA) deposits, a crucial indicator of stable funding, expanded by 9.7% year-on-year and 2.7% sequentially, contributing to an overall 7.7% growth in total deposits for the quarter. Market Reaction and Analytical Insights The consistent growth in ICICI Bank's profitability metrics and healthy deposit accumulation is likely to reinforce investor confidence in the institution's financial resilience and strategic trajectory. The bank's ability to surpass analyst profit estimates during a period when some reports suggest a potentially muted earnings season for India Inc. highlights its robust operational framework and effective execution. Furthermore, improvements in asset quality signal prudent risk management. Gross non-performing assets (GNPA) declined to 1.58% from 1.67% in the preceding quarter, indicating a healthier loan book. Provisions for potential bad loans and other losses also saw a significant 26% year-on-year reduction to ₹914 crore, further bolstering the bank's financial position. The net interest margin (NIM) remained stable at 4.3%, indicating effective management of interest-earning assets and interest-bearing liabilities. Broader Context and Future Outlook ICICI Bank's sustained performance in Q2 FY26 demonstrates its capability to generate profitable growth while maintaining strong asset quality in a dynamic banking landscape. The emphasis on expanding coverage, enhancing delivery capabilities with simplicity, and operational resilience are key aspects of its "risk-calibrated profitable growth" strategy. As the bank continues to strengthen its franchise through high governance standards and a comprehensive customer-centric approach, these factors are expected to underpin its future financial stability and market positioning. Investors will closely monitor further developments regarding credit growth, deposit mobilization, and the broader economic environment in India.