ICICI Bank Q1 Results 2025 have been officially announced, and the private sector lender has delivered a strong performance for the April to June quarter of the financial year 2025-26 (Q1 FY26). The bank reported a 15.5% year-on-year (YoY) increase in standalone net profit, driven by solid growth in net interest income, improved asset quality, and consistent loan book expansion.
This performance shows ICICI Bank’s ability to maintain strong profitability and operational efficiency even in a dynamic interest rate environment.
IN THIS ARTICLE
Key Highlights – ICICI Bank Q1 Results 2025
| Particulars | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Net Profit (Standalone) | ₹12,768 crore | ₹11,059 crore | +15.5% |
| Net Profit (Consolidated) | ₹13,558 crore | ₹11,696 crore | +15.9% |
| Net Interest Income (NII) | ₹21,635 crore | ₹19,311 crore | +12.0% |
| Net Interest Margin (NIM) | 4.34% | 4.78% | Decline |
| Gross NPA Ratio | 1.67% | 2.15% | Improved |
| Net NPA Ratio | 0.41% | 0.48% | Improved |
| Total Deposits | ₹16.08 lakh crore | ₹14.25 lakh crore | +12.8% |
| Loan Book (Advances) | ₹13.6 lakh crore | ₹12.1 lakh crore | +12.3% |
| Provisioning | ₹1,815 crore | ₹1,331 crore | +36.3% |
| CASA Ratio | 38.7% | 40.8% | Slight drop |
Net Profit Growth Supported by Strong Fundamentals
ICICI Bank’s Q1 FY26 net profit stood at ₹12,768 crore, marking a 15.5% increase over ₹11,059 crore in Q1 FY25. The consolidated net profit rose to ₹13,558 crore, a YoY increase of 15.9%. This strong growth was supported by:
- Higher net interest income
- Controlled provisioning
- Improved cost efficiency
- Stable asset quality
This marks another consecutive quarter of double-digit profit growth for the bank.
Net Interest Income and Margins
Net Interest Income (NII), a key indicator of a bank’s core income, rose by 12% YoY to ₹21,635 crore. This reflects:
- Strong credit growth in both retail and business segments
- Steady interest spreads
- Robust disbursal momentum
However, the Net Interest Margin (NIM) slightly declined to 4.34% from 4.78% YoY. The decline was mainly due to changes in the interest rate environment and deposit cost pressures. Despite this, ICICI Bank continues to maintain one of the highest NIMs among Indian private banks.
Loan Book and Deposit Growth
ICICI Bank’s loan book (advances) stood at ₹13.6 lakh crore, registering a 12.3% YoY growth. The bank’s growth was broad-based across retail, SME, and corporate loans:
- Retail loans continued to form the majority share, showing strong disbursal across housing, auto, and personal loans.
- Business loans surged over 30% YoY, indicating strong demand from MSMEs and mid-corporates.
- The bank’s total deposits reached ₹16.08 lakh crore, with a YoY growth of 12.8%.
- The CASA (Current Account and Savings Account) ratio stood at 38.7%, slightly lower than last year but still healthy.
This shows that the bank is maintaining a balanced growth trajectory with stable funding sources.
Asset Quality Improves Further
ICICI Bank’s asset quality continues to improve. The Gross NPA (Non-Performing Assets) ratio came down to 1.67%, a significant improvement from 2.15% a year ago. Similarly, the Net NPA ratio dropped to 0.41% from 0.48%.
The bank made provisions of ₹1,815 crore, higher than ₹1,331 crore in the previous year. This increase in provisioning reflects the bank’s conservative approach to managing potential credit risks, even when asset quality is improving.
Operating Profit and Cost Efficiency
The bank’s core operating profit grew by 13.6% YoY to ₹17,505 crore, supported by strong revenue growth and controlled operating expenses. The bank has continued to:
- Invest in digital infrastructure
- Optimize branch operations
- Control operating costs
These strategies have helped ICICI Bank improve its cost-to-income ratio and sustain profitability.
Strategic Move in Pension Segment
In a key development, ICICI Bank approved the acquisition of ICICI Prudential Pension Fund Management Company. The bank plans to integrate this entity with its wealth and investment business to strengthen its presence in the long-term investment and pension sector.
This acquisition will allow ICICI Bank to participate in the growing demand for pension and retirement planning products in India.
Stock Market Reaction and Analyst Commentary
Following the release of its Q1 FY26 results, ICICI Bank’s stock gained over 2% in intraday trade, reflecting positive investor sentiment. Analysts remain optimistic about the bank’s growth prospects.
- Jefferies maintained a ‘Buy’ rating with a target price of ₹1,760.
- Brokerage firms expect ICICI Bank to continue benefiting from its digital leadership and strong retail lending base.
The bank remains one of the top picks among private sector banks in India, given its consistent performance and robust financial fundamentals.
Conclusion
The ICICI Bank Q1 Results 2025 reflect a strong and stable performance. With a 15.5% increase in net profit, solid growth in core lending, improved asset quality, and efficient cost management, ICICI Bank has reinforced its leadership in India’s private banking sector.
For investors, these results provide confidence in the bank’s long-term profitability, digital-first approach, and conservative risk management strategy. With a steady rise in deposits and advances, ICICI Bank is well-positioned to navigate the evolving banking environment in FY26.
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