Mumbai, 18 October 2025: ICICI Bank Q2 profit beats estimates, posting a standalone net profit of ₹12,359 crore for the quarter ended 30 September 2025, up 5.2% from ₹11,746 crore a year earlier, driven by lower provisions for bad loans and steady interest income growth.
The ICICI Bank earnings growth in India highlights the sector’s ability to navigate interest rate cuts and subdued loan demand, potentially boosting investor confidence across South Asian financial markets where Indian banks play a pivotal role in regional stability.
Financial Highlights in ICICI Bank Q2 Profit
ICICI Bank net profit Q2 2025 stood at ₹12,359 crore, exceeding analyst expectations of ₹12,236 crore according to LSEG data. The bank’s core operating profit rose 6.5% year-on-year to ₹17,078 crore, while profit before tax excluding treasury increased 9.1% to ₹16,164 crore.
Net interest income climbed 7.4% to ₹21,529 crore, though the net interest margin remained flat at 4.3%. Provisions for bad loans and other losses dropped 26% to ₹914 crore, offsetting a decline in treasury income to ₹220 crore from ₹680 crore a year ago. Other income grew 5% during the period.
Domestic loans expanded 10% year-on-year, with small and mid-sized business segments showing the fastest growth. Deposits rose 7.7% in the quarter. These figures underscore ICICI Bank earnings growth in India, as the lender focuses on risk-calibrated expansion.
Sandeep Bakhshi, MD and CEO, stated during the earnings call: “The profit after tax grew by 5.2% year-on-year to INR 123.59 billion in this quarter.” He added: “The core operating profit increased by 6.5% year-on-year to INR 170.78 billion in this quarter.”
Asset Quality Improves
Asset quality strengthened, with the gross non-performing asset ratio improving to 1.58% at 30 September 2025 from 1.67% in the prior quarter. This improvement reflects prudent lending practices amid a gradual pickup in Credit demand.
Sandeep Batra, executive director, noted: “Provisions are likely to move back up in the current quarter due to seasonal factors.”
Background
ICICI Bank, headquartered in Mumbai, is India’s second-largest private sector bank by assets, serving over 100 million customers through more than 6,000 branches and digital platforms. The bank’s Q2 results come as the Reserve Bank of India has reduced its benchmark rate by 100 basis points in 2025 to stimulate growth, though this may pressure margins as lending rates adjust faster than deposit costs.
In the broader context, ICICI Bank earnings growth in India aligns with trends in the banking sector, where peers like HDFC Bank also reported solid Q2 profits, up 11% to ₹18,641 crore. However, subdued retail and corporate loan growth persists due to economic uncertainties. Government data from the RBI shows overall bank Credit growth at 13.5% year-on-year as of September 2025, indicating a moderate recovery.
The ICICI Bank net profit Q2 2025 performance is significant for South Asia, as India’s banking system influences cross-border trade and investment in neighbouring countries like Pakistan, Bangladesh, and Sri Lanka. Stronger bank earnings could support increased lending to regional infrastructure projects under initiatives like SAARC.
What’s Next
Analysts expect ICICI Bank to maintain steady growth, though margins may stay range-bound. Batra commented: “Margins are likely to remain range-bound.” The bank aims to expand its branch network and digital offerings to capture more market share.
ICICI Bank plans to focus on ecosystems and micro-markets for sustainable expansion. With Credit demand projected to rise in the second half of FY26, aided by tax cuts, the lender’s outlook remains positive.
Bakhshi emphasised: “Our strategic focus continues to be on growing profit before tax, excluding treasury, through the 360-degree customer-centric approach.”
The results demonstrate that ICICI Bank Q2 profit beats estimates, positioning the bank well for future challenges in India’s evolving financial landscape.
Published in SouthAsianDesk, October 19th, 2025
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