ICICI Bank Ltd. reported their Q2FY27 earnings result on Saturday, October 17. ICICI Bank reported a 20.1% YoY rise in consolidated net profit to Rs 14,843 crore for the second quarter, compared with Rs 12,359 crore a year earlier. Profit exceeded the estimate of Rs 14,366 crore, while asset quality improved and provisions declined.
The net interest income (NII) increased 18% to Rs 25,339 crore from Rs 21,529 crore in the corresponding quarter last year, beating the estimate of Rs 25,166 crore. However, net interest margin (NIM) narrowed to 4.18% from 4.36% in the preceding quarter and fell short of the estimated 4.3%.
Operating profit rose 18.9% year-on-year to Rs 20,575 crore, compared with Rs 17,298 crore a year ago.
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Asset Quality Improves
The bank's gross non-performing asset (NPA) ratio declined to 1.20% from 1.38% in the previous quarter, better than the estimate of 1.4%. The net NPA ratio also improved to 0.30% from 0.35% sequentially, against an estimate of 0.35%. Provisions stood at Rs 851 crore, down from Rs 914 crore a year earlier and Rs 1,260 crore in the preceding quarter.
The quarter saw stronger earnings and improved asset quality, although net interest margin declined sequentially and missed expectations.
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ICICI Bank Q2 Earnings (YoY)
- Net Profit up 20.1% At Rs 14,843 cror Vs Rs 12,359 crore YoY
- NIM At 4.18% Vs 4.36% QoQ
- Gross NPA At 1.20% Vs 1.38% QoQ
- Net NPA At 0.30% Vs 0.35% QoQ
- NII up 18% At Rs 25,339 crore Vs Rs 21,529 crore YoY
- Provisions At Rs 851 crore Vs Rs 914 crore YoY
- Provisions At Rs 851 crore Vs Rs 1,260 crore QoQ
- Op Profit up 18.9% At Rs 20,575 crore Vs Rs 17,298 YoY
- Net Profit At Rs 14,843 crore Vs Estimate Of Rs 14,366 crore
- Gross NPA At 1.2% Vs Estimate Of 1.4%
- Net NPA At 0.3% Vs Estimate Of 0.35%
- NII At Rs 25,339 crore Vs Estimate Of Rs 25,166 crore
- NIM At 4.18% Vs Estimate Of 4.3%
Bank To Seek RBI Approval For Chairperson's Continuation
ICICI Bank also disclosed the filing of an application with the Reserve Bank of India seeking approval for Pradeep Kumar Sinha's continuation as its non-executive part-time chairperson from July 1, 2027, to February 16, 2029, as per company's exchange filing.
The proposed period falls within his tenure as an independent director already approved by the bank's board and shareholders. The disclosure follows the bank's earlier filings dated February 17, 2024, and May 24, 2024.
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