ICICI Bank Q2 Profit Jumps 20% to ₹14,843 Crore, Beats Estimates as Margin Slips to 4.18%

ICICI Bank reported a 20.1% rise in standalone Q2 FY27 net profit to ₹14,843 crore on October 17, ahead of estimates, as loans grew 30% and provisions fell, even as net interest margin narrowed.

Q2 FY27 Results at a Glance

ICICI Bank posted standalone net profit of ₹14,843 crore for the quarter ended September 30, 2026, up from ₹12,359 crore a year earlier. Analysts had estimated ₹14,366 crore, so the result came in about 3% above the estimate, by simple calculation. Business Standard’s pre-results preview had pointed to profit growth of 8% to 14%.

Loans Grew 30%, but Part of That Comes From One Segment

Total advances rose 30% year on year to ₹18.32 lakh crore at the end of September. Deposits grew 27.1% to ₹20.50 lakh crore.

Business Standard noted that the loan growth figure includes loans made by the bank’s international branches against Foreign Currency Non-Resident (Bank) deposits, known as FCNR(B). Excluding those loans, the portfolio grew 24.1%. FCNR(B) deposits are foreign currency deposits held by non-resident Indians. Pre-results previews for Axis Bank and HDFC Bank had also flagged elevated FCNR(B) inflows as a pressure on margins at those lenders.

Net Interest Margin Narrows to 4.18%

The net interest margin (NIM) measures the gap between what a bank earns on loans and pays on deposits, relative to its earning assets. At ICICI Bank it fell to 4.18% from 4.36% in the April to June quarter and 4.30% a year earlier.

The bank said the Q1 margin included the benefit of interest on a tax refund. Excluding that, Q1 NIM was 4.28%, which puts the sequential fall at about 10 basis points on a like-for-like basis, by simple calculation. Net interest income still grew 17.7%, because the loan book expanded faster than the margin shrank.

Asset Quality Keeps Improving

The gross NPA ratio, which shows bad loans as a share of total loans, fell to 1.20% from 1.38% in the previous quarter and 1.58% a year earlier. The net NPA ratio, after provisions, fell to 0.30%. The provision coverage ratio on non-performing loans stood at 75%.

Net additions to gross NPAs, excluding write-offs and sales, were ₹1,213 crore. The bank wrote off gross NPAs worth ₹1,592 crore during the quarter. Provisions of ₹851 crore were lower than the ₹914 crore a year ago, which helped the bottom line.

How Other Large Private Banks Fared

Two other large private lenders also reported on October 17, as covered by Business Standard.

1. HDFC Bank: net profit up 4.7% to ₹19,510 crore as net interest income grew.
2. Axis Bank: net profit up 38% to ₹7,003 crore as provisions fell, though the figure missed estimates.

ICICI Bank’s 20.1% growth sits between those two figures. Its result beat estimates, while Axis Bank’s missed them. The reports reviewed did not say how HDFC Bank’s profit compared with estimates, and the three banks differ in size, base effects and one-off items, so the figures are not like for like.

Standalone Versus Consolidated Numbers

The headline figure of ₹14,843 crore is standalone, covering the bank’s own operations. The consolidated profit of ₹16,333 crore also includes the bank’s subsidiaries. Consolidated profit grew slightly faster, at 22.3%, than the standalone figure. The bank’s consolidated total assets stood at about ₹32.93 lakh crore on September 30, 2026.

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What the Results Show About the Quarter

Three themes run through the numbers. Loan growth was strong, margins came under pressure, and credit costs were low. That combination explains why profit grew faster than net interest income’s pace might suggest, with falling provisions doing part of the work.

Readers tracking the stock may follow how analysts revise their views on margins in the coming days, since the narrowing NIM was the main watch item before the results. This article does not offer a view on the shares.