ICICI Bank has reported impressive financial results for Q2-2025, showcasing strong growth in various key metrics. The bank's performance reflects its resilience and ability to adapt to market conditions, driven by strategic initiatives and robust operational management.

Profit Before Tax (PBT) excluding treasury grew by 7.9% year-on-year (YoY) and 5.2% quarter-on-quarter (QoQ), reaching ₹ 148.10 billion. This increase highlights the bank's strong operational efficiency and ability to manage costs effectively.

Core Operating Profit also showed remarkable growth, increasing by 12.1% YoY and 4.1% QoQ to ₹ 160.43 billion. Notably, when excluding dividend income from subsidiaries and associates, core operating profit surged by 13.4% YoY and 6.8% QoQ, indicating healthy underlying performance.

Deposits and Advances

The bank's average deposits demonstrated significant growth, up by 15.6% YoY and 3.6% QoQ as of September 30, 2024. This increase can be attributed to the bank's focus on expanding its retail and corporate banking segments. The total deposits at the period end grew by 15.7% YoY and 5.0% QoQ, reflecting strong customer confidence in ICICI Bank.

Average savings account deposits rose by 10.2% YoY and 2.3% QoQ, while average current account deposits increased by 10.8% YoY and 0.3% QoQ. This growth in savings and current account deposits is crucial as it provides the bank with a stable funding base.

Moreover, average term deposits showed a substantial increase of 19.3% YoY and 4.8% QoQ, further strengthening the bank's liquidity position.

In terms of advances, ICICI Bank reported robust growth in its domestic loan portfolio, which increased by 15.7% YoY and 4.6% QoQ. This growth is supported by the bank's strategic focus on retail loans, which grew by 14.2% YoY and 2.9% QoQ.

The business banking portfolio demonstrated remarkable growth, up by 30.0% YoY and 10.7% QoQ, reflecting the bank's strong position in the SME and mid-corporate segments. The domestic corporate portfolio also experienced growth of 11.2% YoY and 5.0% QoQ, showcasing ICICI Bank's commitment to serving large enterprises effectively.

Asset Quality and Provisions

Maintaining asset quality remains a top priority for ICICI Bank. The net NPA ratio improved to 0.42% as of September 30, 2024, compared to 0.43% on June 30, 2024. This improvement indicates effective risk management and credit monitoring practices.

In Q2-2025, the bank recorded net additions of ₹ 17.54 billion to gross NPAs, down from ₹ 26.24 billion in Q1-2025, suggesting a proactive approach to managing non-performing assets.

Provisions for Q2-2025 amounted to ₹ 12.33 billion, representing 0.38% of average advances. The provision coverage ratio was reported at 78.5% as of September 30, 2024, reflecting the bank's strong preparedness against potential credit losses.

Moreover, ICICI Bank held a fund-based outstanding of ₹ 25.46 billion (0.2% of advances) to all standard borrowers under resolution, with provisions of ₹ 8.12 billion maintained against these borrowers.

The bank's contingency provisions stood at ₹ 131.00 billion as of September 30, 2024, providing additional financial cushioning against unforeseen circumstances.

Capital Adequacy

ICICI Bank's Common Equity Tier 1 (CET1) ratio was reported at 15.96% as of September 30, 2024, slightly up from 15.92% on June 30, 2024. This strong capital position underscores the bank's ability to absorb losses while maintaining robust growth.

Conclusion

The results for Q2-2025 highlight ICICI Bank's robust performance across key metrics, including profits, deposits, and asset quality. The strong growth in core operating profit and deposits reflects the bank's effective strategies and customer trust. Continued focus on asset quality and maintaining a strong capital base positions ICICI Bank well for future growth, even amidst a dynamic economic landscape.

This performance reaffirms ICICI Bank's status as a leading player in the Indian banking sector, committed to delivering value to its stakeholders.