Mumbai: ICICI Bank Ltd. reported a strong performance for the first quarter of the 2026-27 financial year, with its standalone net profit rising 16 per cent year-on-year to Rs 14,804 crore. The bank comfortably surpassed market expectations, driven by healthy growth in net interest income, improved operating profit and stronger asset quality.

The lender outperformed Bloomberg’s consensus estimates across key financial metrics, reflecting sustained business growth and prudent risk management during the quarter ended June 30.

Net profit rises 16 per cent

ICICI Bank reported a standalone net profit of Rs 14,804 crore for the June quarter, compared with Rs 12,768 crore in the corresponding period of the previous financial year.

The profit was significantly higher than Bloomberg’s consensus estimate of Rs 13,373 crore, indicating a stronger-than-expected quarterly performance.

The robust earnings were supported by higher interest income, improved operational efficiency and lower stress on the loan book.

Net interest income records healthy growth

The bank’s Net Interest Income (NII), which represents the difference between interest earned on loans and interest paid on deposits, increased 13 per cent year-on-year.

NII stood at Rs 24,385 crore, up from Rs 21,635 crore in the same quarter last year.

The figure also exceeded analysts’ expectations of Rs 23,813 crore, highlighting the bank’s continued strength in its core lending business.

Operating profit beats market estimates

Operating profit during the quarter rose to Rs 20,386 crore, compared with Rs 17,505 crore in the corresponding quarter of FY26.

The performance was ahead of Bloomberg’s estimate of Rs 19,278 crore, reflecting healthy business momentum and disciplined cost management.

Meanwhile, the bank’s Net Interest Margin (NIM) improved marginally to 4.36 per cent, compared with 4.34 per cent a year earlier.

The margin also exceeded the Street estimate of 4.18 per cent, indicating stable profitability despite changing interest rate conditions.

Asset quality continues to improve

ICICI Bank reported further improvement in its asset quality during the quarter.

The Gross Non-Performing Asset (GNPA) ratio declined to 1.38 per cent, compared with 1.67 per cent in the year-ago period. The figure was also better than the Bloomberg estimate of 1.45 per cent.

Similarly, the Net Non-Performing Asset (NNPA) ratio improved to 0.35 per cent, down from 0.41 per cent a year ago and lower than analysts’ expectation of 0.37 per cent.

The continued decline in bad loans reflects effective credit monitoring and improved recoveries.

Strong start to FY27

The June quarter results indicate a solid beginning to FY27 for ICICI Bank, with the lender outperforming expectations across profitability, operating performance and asset quality.

The steady growth in net interest income, higher operating profit and continued improvement in non-performing assets suggest that the bank remains well-positioned to sustain its growth trajectory in the coming quarters.

Investors and analysts are expected to closely monitor loan growth, deposit mobilisation and credit quality as the banking sector navigates evolving interest rate and economic conditions.