ICICI Bank Surpasses Q2 Expectations with Impressive 23.4% YoY Growth in Profit Before Tax

The second quarter of fiscal year 2027 has been a remarkable period for ICICI Bank, with the company exceeding expectations through its robust financial performance.

During the earnings call on October 17, Sandeep Batra and other senior executives highlighted the bank's strategic focus on growing profit before tax, excluding treasury, through a customer-centric approach. The results were nothing short of impressive, as the profit before tax, excluding treasury, grew by 23.4% year-on-year to INR 199.54 billion in this quarter.

The core operating profit also saw significant growth, increasing by 21.8% year-on-year to INR 208.05 billion in this quarter. Furthermore, the core operating profit, excluding dividend from subsidiaries, rose by 25% year-on-year to INR 203.42 billion in this quarter.

One of the key highlights of the quarter was the growth in total deposits, which expanded by 27.1% year-on-year and 11.8% sequentially at September 30, 2026. This growth is attributed to the bank's successful mobilization of gross FCNR (Foreign Currency Non-Resident) deposits of about USD 18 billion pursuant to RBI swap facility.

Another notable aspect was the increase in average liquidity coverage ratio for the quarter, which stood at around 126%. The overall loan portfolio, including international branches, witnessed a remarkable growth of 30% year-on-year and 12% sequentially at September 30, 2026. Excluding loans provided by international branches against FCNR deposits, total loans grew by 24.1% year-on-year and 7.3% sequentially.

The retail and rural portfolio saw significant expansion, with a growth of 14.8% year-on-year and 3.2% sequentially. Notably, the retail and rural portfolio accounted for approximately 43% of the total loan book, including non-fund-based outstanding. The business banking and domestic corporate portfolios also experienced substantial growth, increasing by 33.8% year-on-year and 30.6% year-on-year respectively.

Anindya, another senior executive at ICICI Bank, further elaborated on loan growth and credit quality during the earnings call. He mentioned that the mortgage portfolio grew by 15.3% year-on-year and 3.5% sequentially, while vehicle loans expanded by 7.8% year-on-year and 1.4% sequentially.

Additionally, Anindya discussed the growth in credit card portfolio, which declined by 9.7% year-on-year and 0.2% sequentially. The jewel loan portfolio, however, experienced an impressive growth of 79.4% year-on-year and 4.5% sequentially.

In conclusion, ICICI Bank's Q2 performance is nothing short of exceptional, with the company delivering significant growth in key financial metrics. As the bank continues to navigate the evolving banking landscape, its commitment to maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital will likely remain crucial factors driving long-term success.