ICICI Bank, the second-largest private sector lender in India, announced a 14.5% year-on-year increase in net profit, reaching ₹11,746 crore for the July-September quarter of financial year 2025 (Q2FY25). This growth was supported by strong non-interest income, fee income, and treasury gains. Analysts had projected a net profit of ₹10,952 crore. Sequentially, the net profit rose by 6.21%.
The bank reported a 9.5% year-on-year growth in net interest income (NII), totaling ₹20,048 crore, driven by robust advances. However, the net interest margin (NIM) fell by 9 basis points to 4.27% in Q2FY25, compared to 4.36% in the previous quarter and 4.53% a year earlier. Sandeep Batra, Executive Director of ICICI Bank, noted that the bank expects NIM to remain stable until interest rates change.
In addition, the bank’s non-interest income grew by approximately 11% year-on-year to ₹6,496 crore in Q2FY25. Fee income rose by 13.3% year-on-year to ₹5,894 crore, while treasury gains significantly improved to ₹680 crore, a turnaround from a loss of ₹85 crore in the same quarter last year.
The bank’s asset quality showed improvement, with the gross non-performing asset (NPA) ratio decreasing to 1.97% in Q2FY25 from 2.15% in Q1FY25 and 2.48% in Q2FY24. The net NPA ratio also fell to 0.42%, down from 0.43% in the previous quarter and the same period a year ago.
Gross slippages for the quarter were ₹5,073 crore, a decrease from ₹5,916 crore in Q1FY25. Recoveries and upgrades of NPAs, excluding write-offs and sales, reached ₹3,319 crore in Q2FY25, compared to ₹3,292 crore in the previous quarter. The bank wrote off gross NPAs totaling ₹3,336 crore during this period.
Provisions decreased sequentially to ₹1,233 crore, and the bank maintained a contingency provision of ₹13,100 crore as of September 30, 2024.
Advances grew by 15.7% year-on-year and 4.6% sequentially to ₹12.43 trillion, with retail loans increasing by 14.2% year-on-year and 2.9% sequentially. The business banking portfolio saw a significant 30% year-on-year growth, while the corporate portfolio increased by 11.8% year-on-year and 4.9% sequentially.
Deposits also experienced healthy growth, rising by 15.6% year-on-year and 5% sequentially to ₹14.97 trillion at the end of Q2FY25. Term deposits at the period-end increased by 15.9% year-on-year and 5.5% sequentially to ₹8.89 trillion.
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