ICICI Bank Q1 profit rises 15.5%, NIM slips marginally

ICICI Bank reported a net profit of ₹12,768 crore, marking a 15.5% year-on-year rise as compared to ₹11,059 crore in Q1 of FY26. Its net interest income (NII) jumped by 10.6% year-on-year to ₹ 21,635 crore, while its net interest margin (NIM) slipped a bit to 4.34% this in this quarter, from 4.41% in Q4FY25 and 4.36% in Q1FY025. 

India's second largest private sector lender's profitability was boosted by its non-interest income, excluding treasury, which increased by 13.7% year-on-year to ₹7,264 crore, with fee income growing by 7.5% to ₹5,900 crore and fees from retail, rural and business banking customers constituted about 79% of total fees. Treasury gains were ₹1,241 crore in the first quarter of fiscal 2026, as compared to ₹ 613 crore last year, "primarily reflecting realised and mark-to market gains in fixed income securities and equities," the bank said in its statement. 

Net domestic advances grew by 12.0% year-on-year and 1.5% sequentially, while the retail loan portfolio grew by 6.9% year-on-year and 0.5% sequentially, and comprised 52.2% of the total loan portfolio for Q1FY26. The business banking portfolio grew by 29.7% year-on-year and 3.7% sequentially, while the domestic corporate portfolio grew by 7.5% year-on-year but declined by 1.4% sequentially. 

Provisions (excluding provision for tax) were ₹1,815 crore, compared to ₹1,332 crore in Q1FY25, attributing the decline to the impact of release of AIF related provisions of ₹389 crore. The Bank holds total provisions, other than specific provisions on fund-based outstanding to borrowers classified as non-performing, amounting to ₹22,664 crore or 1.7% of loans. 

As per ICICI Bank's Q1 earnings statement, the bank’s total capital adequacy ratio was 16.97% and CET-1 ratio was 16.31% compared to the minimum regulatory requirements of 11.70% and 8.20% respectively. Even the gross non-performing assets (GNPA) ratio showed improvement, easing down to 1.67% from last year's 2.15%. 

On consolidated basis, the bank reported profit after tax (PAT) of ₹ 13,558 crore, a 15.9% increase, while assets amounted to ₹ 26,68,636 crore, seeing a growth by 10.9%. 

The bank saw a slight uptick in its share price on Friday, with a 0.56% increase to ₹1,426.70 before declaring its Q1 results.