ICICI Bank on Saturday reported a 20.1 percent year-on-year rise in standalone net profit to Rs 14,843 crore for the second quarter of FY27, beating market expectations. The private sector lender reported strong growth in net interest income (NII) and advances, while asset quality improved.
The net profit exceeded the CNBC TV18 poll estimate of Rs 14,280 crore by 3.9 percent. ICICI Bank's net interest income increased 17.7 percent year-on-year to Rs 25,339 crore from Rs 21,529 crore, surpassing the poll estimate of Rs 24,811 crore by 2.1 percent.
The bank's net interest margin (NIM) stood at 4.18 percent in the July-September quarter, compared with 4.36 percent in the preceding quarter and 4.30 percent in the year-ago period. The sequential decline of 18 basis points reflected pressure on margins despite strong growth in interest income. The bank said the benefit from interest on tax refunds was negligible during the fiscal second quarter, compared with eight basis points in the preceding quarter.
Core operating profit increased 21.8 percent year-on-year to Rs 20,805 crore from Rs 17,078 crore. Fee income rose 20.1 percent to Rs 7,795 crore, with fees from retail, rural and business banking customers accounting for approximately 75 percent of the total. Operating expenses increased 8.5 percent year-on-year to Rs 12,811 crore.
ICICI Bank reported provisions, excluding tax provisions, of Rs 851 crore for the September quarter, compared with Rs 914 crore a year earlier, representing a decline of approximately 6.9 percent.