ICICI Bank Q1 Financial Highlights

ICICI Bank has announced a significant 15.9% year-on-year increase in consolidated net profit, reaching Rs 13,558 crore for the quarter ending June 2025. This marks a substantial rise from Rs 11,696 crore in the same quarter the previous year.

On a standalone basis, the bank's net profit grew by 15.5% to Rs 12,768 crore, up from Rs 11,059 crore a year ago. The growth was supported by a 10.6% increase in net interest income (NII) to Rs 21,635 crore, driven by a 12% growth in domestic loans.

Challenges and Outlook

Despite the positive results, the bank's net interest margin (NIM) slightly declined to 4.34% from 4.41% in the previous quarter. Sandeep Batra, Executive Director, anticipates further compression in NIMs in the upcoming quarter, citing RBI policy moves and system liquidity as key factors.

Other income, excluding treasury gains, saw a 13.7% growth to Rs 7,264 crore. However, the bank has moderated its expansion in high-risk segments like credit cards and personal loans, reflecting a strategic shift in response to market trends.

Asset Quality and Future Prospects

ICICI Bank remains optimistic about its asset quality, with gross non-performing assets (GNPA) improving to 1.67% from 2.15% a year earlier. The bank's capital adequacy ratio stands strong at 16.97%, with no immediate plans for capital raising.

Looking ahead, Batra expressed confidence in the macroeconomic outlook, expecting improved performance in the second half of the fiscal year and a subsequent rise in credit demand.