ICICI Bank reported a robust set of earnings for the first quarter of FY2025, with net profit rising 16% year-on-year to Rs. 10,636 crore, driven by strong loan growth, higher net interest income, and stable asset quality. The performance exceeded market expectations and led to a 3% rise in the bank’s share price during early trade. Backed by resilient margins, growing retail credit, and prudent risk management, ICICI Bank continues to consolidate its position as a leading private sector lender with a well-balanced growth strategy and consistent execution.
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Strong Q1 Performance Reflects Operational Discipline
ICICI Bank reported a net profit of Rs. 10,636 crore in the April–June quarter, compared to Rs. 9,385 crore in the same period last year. The 16% growth reflects the bank’s ability to sustain profitability across business cycles, even as the broader interest rate environment remains volatile.
Total income rose to Rs. 47,913 crore, up from Rs. 42,779 crore a year ago, underscoring the lender’s continued momentum in both interest and non-interest revenue streams. The healthy top-line growth came on the back of strong advances, particularly in the retail and SME segments.
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Net Interest Income and Margins Hold Steady
The bank’s net interest income (NII) — a core measure of banking profitability — increased to Rs. 19,093 crore, registering a 4.8% year-on-year growth. Despite competitive pressures and a changing yield curve, ICICI maintained a net interest margin (NIM) of 4.40%, reflecting prudent asset-liability management and focus on high-yielding retail loans.
This margin strength, coupled with stable funding costs, allowed the bank to absorb provisioning needs while sustaining earnings growth.
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Loan Book Expansion and Credit Quality
ICICI Bank’s total advances grew by 17.7% YoY, reaching Rs. 11.54 lakh crore, with retail loans accounting for over 54% of the portfolio. The bank saw broad-based growth across home loans, personal loans, auto finance, and business banking, highlighting the strength of its consumer-centric lending approach.
On the asset quality front, the gross non-performing asset (GNPA) ratio improved slightly to 2.76%, down from 2.81% a year earlier. The net NPA ratio stood at 0.42%, showcasing disciplined underwriting and sustained recovery efforts.
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Cost Efficiency and Capital Strength
Operating expenses increased in line with business growth, but the cost-to-income ratio remained well managed at 39.5%, enabling ICICI to retain its competitive edge in operational efficiency. Meanwhile, the bank’s capital adequacy ratio remained healthy at 16.76%, comfortably above regulatory requirements.
The bank also continued its investments in digital capabilities, branch expansion, and risk management infrastructure, laying the foundation for scalable and sustainable growth.
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Market Reaction and Investor Sentiment
Following the earnings announcement, ICICI Bank shares rose by 3%, reflecting investor confidence in the bank’s growth trajectory and earnings consistency. Analysts highlighted the strong fundamentals, diversified loan mix, and improving return ratios as key positives.
The stock remains a preferred pick among institutional investors, supported by its robust balance sheet, consistent dividend history, and sector-leading metrics.
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Conclusion
ICICI Bank’s first-quarter results reinforce its standing as one of India’s most dependable private lenders. A strong surge in net profit, supported by healthy margins and disciplined credit practices, showcases the bank’s ability to navigate economic fluctuations while delivering shareholder value. As digital transformation deepens and credit demand remains robust, ICICI appears well poised for sustained performance in the quarters ahead — backed by scale, strategy, and operational excellence.
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