ICICI Bank Ltd. has announced a significant financial performance for the first quarter of the fiscal year 2027, reporting a 15.9% year-on-year increase in net profit. For the quarter ending June 30, 2026, the private sector lender's net profit reached Rs 14,805 crore, up from Rs 12,768 crore in the corresponding period last year.
Strong Growth in Core Income
The bank's Net Interest Income (NII) saw a robust rise of 12.7% year-on-year, climbing to Rs 24,384 crore from Rs 21,635 crore in the prior year's first quarter. The Net Interest Margin (NIM) for the quarter stood at 4.36%, showing an improvement from 4.32% in the preceding March quarter and 4.34% in the year-ago quarter.
Beyond interest income, ICICI Bank's non-interest income, excluding treasury operations, also grew by 16% year-on-year to Rs 8,425 crore. Fee income, a key component, surged by 23.5% annually to Rs 7,286 crore, with contributions from retail, rural, and business banking customers accounting for approximately 72% of the total fee revenue.
Operating expenses for the quarter increased by 10.4% year-on-year to Rs 12,574 crore. Notably, the bank recorded a treasury gain of Rs 151 crore in Q1 FY27, a positive turnaround compared to a treasury loss of Rs 106 crore in Q4 FY26.
Stable Asset Quality Maintained
ICICI Bank reported stable asset quality for the June 2026 quarter, a crucial indicator of financial health. The Gross Non-Performing Asset (GNPA) ratio improved to 1.38% as of June 30, 2026, down from 1.67% year-on-year and 1.40% quarter-on-quarter. Similarly, the Net Non-Performing Asset (NNPA) ratio also declined to 0.35% from 0.41% year-on-year, though it saw a slight increase from 0.33% in the previous quarter.
Gross NPA additions decreased to Rs 5,552 crore from Rs 6,245 crore in the year-ago period. Recoveries and upgrades of NPAs, excluding write-offs and sales, amounted to Rs 2,845 crore. The bank wrote off gross NPAs worth Rs 1,673 crore during the quarter, and its provisioning coverage ratio (PCR) on non-performing loans stood at a healthy 74.7% as of June 30, 2026.
Provisions and Financial Prudence
Provisions, excluding tax, saw a reduction, declining to Rs 1,260 crore from Rs 1,815 crore year-on-year. As of June 30, 2026, ICICI Bank continues to hold substantial contingency provisions of Rs 13,100 crore. Additionally, it maintained an extra standard asset provision of Rs 1,283 crore, established in Q3 FY26 as per Reserve Bank of India (RBI) directives for its agricultural priority sector portfolio.
The bank's total provisions held, excluding specific provisions on fund-based exposure to non-performing borrowers, stood at Rs 22,963 crore, equivalent to 1.4% of its total loan book, underscoring its cautious approach to risk management.