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ICICI Bank Q1 Results: ICICI Bank reported a 15.5 per cent year-on-year growth in standalone net profit at Rs 12,768 crore for Q1 FY26. Net interest income rose 10.6 per cent to Rs 21,635 crore.
Core operating profit increased 13.6 per cent to Rs 17,505 crore, while profit before tax (excluding treasury) came in at Rs 15,690 crore, up 11.4 per cent from a year ago. However, the net interest margin (NIM) narrowed slightly to 4.34 per cent from 4.36 per cent in Q1 FY25, the bank reported in an exchange filing.
Business loans power credit growth, rural lending dips
According to the filing, the bank’s overall loan book remained healthy, with domestic advances rising 12 per cent year-on-year to Rs 13.3 lakh crore. Interestingly, business banking was the star performer, logging a sharp 29.7 per cent growth. Retail loans, which account for over half of the loan mix, rose 6.9 per cent, while rural lending saw a marginal decline of 0.4 per cent.
The total advances, including international operations, grew 11.5 per cent year-on-year to Rs 13.64 lakh crore. While the domestic corporate loan book was up 7.5 per cent annually, it showed a sequential decline, hinting at some softness in large-ticket demand.
Asset quality improves, provisions inch up
ICICI Bank maintained strong control over asset quality. Gross NPAs came down to 1.67 per cent from 2.15 per cent a year ago, while net NPAs improved slightly to 0.41 per cent. The bank has kept its provisioning coverage ratio at a solid 75.3 per cent.
Provisions (excluding tax) increased to Rs 1,815 crore in Q1 FY26 from Rs 1,332 crore last year, partly due to a base effect as the same quarter last year had seen a one-time Rs 389 crore release linked to Alternative Investment Funds.
Deposit growth snapshot
Deposits continued to grow at a healthy pace. Period-end deposits rose 12.8 per cent to Rs 16.08 lakh crore, while average deposits grew 11.2 per cent. The CASA ratio, a key metric indicating low-cost deposits, stood at 38.7 per cent.
On the strategic front, the bank’s board approved acquiring 100 per cent stake in ICICI Prudential Pension Funds Management (ICICI PFM) from ICICI Prudential Life, making it a wholly owned subsidiary, subject to regulatory approvals from the RBI and PFRDA.
Subsidiary earnings update
On a consolidated basis, ICICI Bank posted a 15.9 per cent rise in net profit to Rs 13,558 crore. Total consolidated assets stood at Rs 26.68 lakh crore, up nearly 11 per cent year-on-year.
Among subsidiaries, ICICI Lombard General Insurance posted a 28.7 per cent jump in net profit to Rs 747 crore. ICICI Prudential AMC also had a solid quarter, posting Rs 782 crore in profit. ICICI Life saw a slight dip in premium growth, but its value of new business (VNB) margin improved to 24.5 per cent. ICICI Securities, however, reported a drop in profit to Rs 391 crore.
Capital adequacy remained strong, with the overall ratio at 16.97 per cent and the CET1 ratio at 16.31 per cent, well above regulatory norms. All in all, the bank looks to be on a solid footing as it moves ahead into the rest of the fiscal year.
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