ICICI Bank has announced a strong start to the financial year, reporting a significant 15.5% increase in its net profit for the April-June quarter.
Impressive Profitability Boost
The private sector lender recorded a standalone profit after tax (PAT) of Rs 12,768 crore in the first quarter of the current fiscal year. This marks a notable jump from Rs 11,059 crore reported in the same period last year.
Driving this growth was a healthy 10.6% year-on-year increase in Net Interest Income (NII), reaching Rs 21,635 crore. While the Net Interest Margin (NIM) stood at 4.34%, it remained robust despite a slight dip from 4.36% a year ago.
Diversified Income Streams
Beyond interest income, the bank saw other revenue streams perform well. Fee income grew by 7.5% year-on-year, hitting Rs 5,900 crore. This shows the bank’s success in non-core banking services.
Treasury gains also provided a significant boost, more than doubling to Rs 1,241 crore from Rs 613 crore in the corresponding quarter last year. These gains reflect positive movements in the bank’s fixed income securities and equity investments.
Improving Asset Quality
ICICI Bank continued to show improvement in its asset quality. The gross Non-Performing Assets (NPA) ratio decreased significantly to 1.67% from 2.15% in the previous year. Similarly, the net NPA ratio also improved, standing at 0.41% compared to 0.43%.
The bank managed to recover and upgrade Rs 3,211 crore from its NPAs during the quarter. While gross NPAs amounting to Rs 2,359 crore were written off, the provisioning coverage ratio on non-performing loans remained strong at 75.3% as of June 30, 2025.
Strong Loan and Deposit Growth
The bank’s total advances saw an 11.5% year-on-year increase, reaching Rs 13.64 lakh crore by the end of June 2025. Domestic advances, a key indicator, grew even faster at 12%.
The retail loan portfolio, a significant part of the bank’s business, grew by 6.9% year-on-year and now makes up 52.2% of the total loan portfolio. On the funding side, total deposits rose by 12.8% year-on-year, reaching Rs 16.08 lakh crore.
Robust Capital Position
ICICI Bank maintains a strong capital position, essential for sustained growth and resilience. As of June 30, 2025, its total capital adequacy ratio stood at a healthy 16.97%. The Common Equity Tier 1 (CET-1) ratio was also robust at 16.31%.
- ICICI Bank’s net profit surged by 15.5% to Rs 12,768 crore in Q1 FY25.
- Net Interest Income (NII) increased by 10.6%, reaching Rs 21,635 crore.
- Asset quality improved, with gross NPA ratio dropping to 1.67%.
- Both loans and deposits registered double-digit growth year-on-year.
These results highlight ICICI Bank’s continued strong performance across key financial metrics, setting a positive tone for the rest of the fiscal year.
