Mumbai – ICICI Bank Ltd, India’s second-largest private sector lender, has delivered a robust performance for the first quarter of fiscal 2027, reporting a 15.9% year-on-year (YoY) surge in profit after tax (PAT) to ₹14,805 crore. The result, announced on July 18, comfortably surpassed analyst expectations, driven by strong net interest income growth and a significant reduction in provisions.
The bank’s net interest income (NII)—the difference between interest earned and paid—rose by 12.7% YoY to ₹24,384 crore during the quarter ended June 30, 2026. Net interest margin (NIM), a key measure of profitability, improved to 4.36% in Q1 from 4.34% in the same period last year. Provisions (excluding tax) fell sharply to ₹1,260 crore, compared to ₹1,815 crore a year ago, reflecting healthier asset quality. The bank continues to maintain a contingency provision of ₹13,100 crore and an additional standard asset provision of ₹1,283 crore, as directed by the RBI for its agricultural priority sector portfolio.
Asset quality metrics showed continued improvement, with the gross non-performing asset (NPA) ratio declining to 1.38% at June 30, 2026, from 1.40% in the preceding quarter and 1.67% a year earlier. The net NPA ratio stood at 0.35%, up slightly from 0.33% sequentially but down from 0.41% YoY. Fresh NPA additions fell to ₹5,552 crore in Q1 from ₹6,245 crore in the year-ago period, while recoveries and upgrades were ₹2,845 crore. The bank’s provisioning coverage ratio on non-performing loans remained healthy at 74.7%.
The bank’s total capital adequacy ratio was 16.84% at the end of June, well above the minimum regulatory requirement of 11.70%, with a CET-1 ratio of 16.19% against the 8.20% requirement, underscoring a strong capital position. Total advances grew by 19.6% YoY to ₹16,31,260 crore, driven by a 12% growth in the retail loan portfolio, which now constitutes 49.2% of total loans. The business banking portfolio saw a sharp 28.2% YoY increase, while the rural portfolio surged 35.4%, and domestic corporate loans grew by 18.5%. Total deposits also rose 14% to ₹18,33,586 crore.
On a consolidated basis, the bank’s profit after tax increased to ₹15,440 crore in the quarter, up from ₹13,558 crore in the same period last year. The strong all-round performance reflects ICICI Bank’s robust execution across business segments and its ability to navigate the competitive banking landscape while maintaining asset quality discipline.
