ICICI Bank Q2 Results October 17, 2026: Profit Rises 20.1% to ₹14,843 Crore as Margin Slips

ICICI Bank Q2 results landed on Saturday, October 17, 2026, and the profit line did exactly what investors have come to expect from this lender. Standalone profit after tax rose 20.1% year on year to ₹14,843 crore for the July to September quarter, up from ₹12,359 crore, according to the bank’s results filing and press release on BSE. The one number that didn’t cooperate was the margin.

ICICI Bank Q2 results October 17: the numbers that matter

Everything below is standalone, for the quarter ended September 30, 2026 (Q2 FY27), and compared with the same quarter last year unless we say otherwise.

• Net interest income (NII): ₹25,339 crore, up 17.7% from ₹21,529 crore.
• Net interest margin (NIM): 4.18%, against 4.36% in the June quarter and 4.30% a year ago.
• Core operating profit: ₹20,805 crore, up 21.8%. This strips out treasury income.
• Fee income: ₹7,795 crore, up 20.1%. About 75% of fees came from retail, rural and business banking customers.
• Operating expenses: ₹12,811 crore, up 8.5%, so costs grew at less than half the pace of NII.
• Provisions: ₹851 crore, lower than ₹914 crore a year earlier.
• Treasury: a loss of ₹230 crore, compared with a gain of ₹220 crore a year ago.

Sequentially, profit barely moved. The filing shows ₹14,804.50 crore for the June quarter, so the 20% jump is a year-on-year story, not a quarter-on-quarter one.

Why the margin slipped

The reported NIM fell 18 basis points from the June quarter. Part of that is optics. The June figure included an 8 basis point boost from interest on a tax refund, and without it the margin was 4.28%. So the cleaner decline is about 10 basis points.

The rest comes from a surge of foreign currency non-resident, or FCNR(B), deposits. These are term deposits, and they pushed the average CASA ratio (cheap current and savings account money as a share of deposits) down to 35.8%. Executive director Sandeep Batra told reporters the drop from 4.28% to 4.18% was largely a function of FCNR(B), which brings a higher deposit base and a lower CASA ratio, as BusinessLine reported.

Loans and deposits jump

The FCNR(B) money shows up on both sides of the balance sheet. Total loans grew 30.0% to ₹18,31,580 crore, and 12.3% from June. Strip out loans that international branches made against those deposits and loan growth was 24.1%. Total period-end deposits rose 27.1% to ₹20,49,874 crore. Excluding FCNR(B), deposit growth was 17.0%.

Within the loan book, business banking grew 33.8% and domestic corporate loans 30.6%. Retail and rural loans grew a slower 14.8%, but still make up 51.6% of the portfolio.

Asset quality keeps getting cleaner

The gross NPA ratio fell to 1.20% at the end of September, from 1.38% in June and 1.58% a year ago. Net NPA was 0.30%. Fresh gross NPA additions were ₹4,833 crore, a little below ₹5,034 crore in the same quarter last year, and the provision coverage ratio stood at 75.0%. The bank still holds ₹13,100 crore of contingency provisions, plus ₹1,283 crore set aside in Q3 FY26 on RBI’s direction for its agricultural priority sector book.

On a consolidated basis, which includes subsidiaries, profit came in at ₹16,333 crore against ₹13,357 crore a year earlier.

Our read

This is a strong quarter with a footnote. Core profit grew faster than NII, costs stayed in check and bad loans kept shrinking. The footnote is the margin. How quickly the FCNR(B) deposits run off, and whether CASA recovers, will decide whether 4.18% is a floor or a new normal. Since the results came out on a weekend, the first trading session after it will be the market’s first chance to weigh in.

For context on the other big private lender’s numbers from the same day, see our HDFC Bank Q2 results summary. Our guide on how to analyse quarterly results of a company explains how to read NII, margins and NPAs, and the price to book ratio explainer covers how banks are usually valued.

This article is a news summary for information only and is not investment advice. Please consult a SEBI-registered adviser before making investment decisions.