# ICICI Bank Q2 Profit Rises 20% to ₹14,843 Crore as Margins Tighten

- URL: https://stocks.freetheai.org/news/icici-bank-q2-profit-rises-20-to-14-843-crore-as-margins-tighten-bd7eb9
- Published: 2026-10-17T15:27:18Z
- Category: earnings; sentiment: mixed; impact: high
- Symbols: [NSE:ICICIBANK](https://stocks.freetheai.org/symbols/NSE-ICICIBANK)
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ICICI Bank Limited (NSE:ICICIBANK) reported a 20.1 percent year-on-year increase in net profit to ₹14,843 crore for the second quarter ended September 30, 2026. The gain was supported by a 17.7 percent rise in net interest income to ₹25,338.7 crore. Total lending surged 30 percent to ₹18.3 lakh crore, while overall deposits expanded 27.1 percent to ₹2.04 lakh crore during the period.

Despite strong earnings and double-digit business growth, profitability margins faced pressure. The bank's net interest margin narrowed by 12 basis points year-on-year to 4.18 percent. Management indicated that large foreign currency non-resident deposit inflows increased borrowing costs and weighed on the current and savings account ratio, leading to the margin contraction.

Investors will track how ICICI Bank manages its deposit mix and funding costs in coming quarters to stabilize margins. Attention will also center on whether loan growth can maintain its rapid momentum without further diluting net interest yields once foreign currency inflows normalize.

## Key points

- ICICI Bank Limited reported a 20.1 percent year-on-year increase in Q2 net profit to ₹14,843 crore.
- Net interest income grew 17.7 percent year-on-year to ₹25,338.7 crore on strong lending activity.
- Total loans expanded 30 percent to ₹18.3 lakh crore, while total deposits grew 27.1 percent to ₹2.04 lakh crore.
- Net interest margin contracted by 12 basis points year-on-year to 4.18 percent due to higher deposit costs.

## Questions and answers

### What was ICICI Bank's net profit in Q2 2026?

ICICI Bank posted a net profit of ₹14,843 crore for the quarter ended September 30, 2026, marking a 20.1 percent increase from ₹12,359 crore in the same period a year earlier.

### Why did ICICI Bank's net interest margin decrease?

The bank's net interest margin fell to 4.18 percent due to higher costs associated with foreign currency non-resident inflows, which expanded the deposit base and lowered the CASA ratio.

### How much did ICICI Bank's loans and deposits grow?

Loan book expanded 30 percent year-on-year to ₹18.3 lakh crore, while total deposits grew 27.1 percent to ₹2.04 lakh crore during the second quarter.