ICICI Bank reported a robust 16% year-on-year increase in net profit for the first quarter of FY2025, driven by healthy loan growth, improved asset quality, and strong operating metrics. The private sector lender posted a net profit of Rs. 11,981 crore for the quarter ended June 30, up from Rs. 10,636 crore in the corresponding period last year. Despite moderating net interest margins, the bank maintained earnings momentum through cost controls and higher fee-based income. The results reflect ICICI’s steady operational discipline, digital focus, and sustained retail lending strength amid a stable macroeconomic backdrop.
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Revenue and Profitability Highlights
ICICI Bank’s net interest income (NII) for the quarter stood at Rs. 19,093 crore, registering a 4% year-on-year growth. This performance was supported by a 16.5% increase in domestic loan book, led by retail and SME segments. However, net interest margin (NIM) came in slightly lower at 4.42% compared to 4.78% a year ago, reflecting a compression due to rising deposit costs.
Non-interest income remained resilient, contributing meaningfully to the topline. Fee income grew in double digits, driven by strong momentum in card fees, transaction banking, and distribution services. Operating profit before provisions increased modestly to Rs. 15,364 crore, showcasing the bank’s ability to sustain earnings in a tighter rate environment.
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Asset Quality and Provisions
The lender reported a healthy improvement in asset quality metrics. Gross non-performing assets (GNPA) ratio declined to 2.76%, down from 2.81% in the previous quarter and 3.41% a year earlier. Net NPA stood at 0.42%, among the lowest in the banking sector.
Provisions and contingencies declined to Rs. 918 crore, a sharp fall from Rs. 1,292 crore in the same quarter last year, reflecting a lower slippage rate and better recovery environment. The bank’s provision coverage ratio (PCR) remains strong, reinforcing its risk buffers and credit discipline.
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Balance Sheet and Capital Position
ICICI Bank’s total advances rose to Rs. 11.89 lakh crore, with retail loans constituting 54.6% of the portfolio. Growth was broad-based across home loans, personal loans, and business banking. On the liabilities side, total deposits increased to Rs. 13.36 lakh crore, up 19.5% year-on-year, with current and savings account (CASA) ratio at 40.5%.
The bank’s capital adequacy ratio under Basel III stood at 16.76%, well above regulatory requirements, providing ample headroom for future credit expansion and investments.
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Strategic Focus and Outlook
ICICI Bank continues to strengthen its position as a digitally agile and customer-centric institution. Strategic investments in technology, along with a growing suite of digital offerings across retail and corporate verticals, have enhanced customer engagement and operating efficiency.
Looking ahead, the bank remains optimistic about credit growth prospects, particularly in consumer lending and MSMEs, supported by a stable interest rate regime and improving economic indicators. Management reiterated its commitment to conservative lending practices and maintaining robust capital and liquidity profiles.
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Conclusion: Sustained Momentum with Risk Discipline
ICICI Bank’s Q1 performance underscores its capability to deliver consistent earnings amid shifting rate cycles and competitive pressures. With strong fundamentals, improving asset quality, and a forward-looking digital strategy, the lender is well-placed to navigate evolving market dynamics and capture growth opportunities in India’s expanding financial ecosystem.
The 16% jump in net profit is more than a quarterly headline—it’s a reflection of prudent management, diversified revenue levers, and long-term strategic clarity. For investors and analysts alike, ICICI Bank’s results reaffirm its status as a benchmark for private banking excellence in the country.
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