The bank’s net interest income (NII) also saw a 7.4% YoY increase, rising to Rs 21,529 crore from Rs 20,048 crore in Q2 FY25. Net interest margin (NIM) stood at 4.30% for the quarter. ICICI Bank posted a 6.5% YoY growth in core operating profit, which rose to Rs 17,078 crore from Rs 16,043 crore in the same period last year.
Provisions (excluding tax) for the quarter declined significantly to Rs 914 crore in Q2 FY26, compared to Rs 1,233 crore in Q2 FY25 and Rs 1,815 crore in the previous quarter.
The bank recorded healthy growth in its deposit base. Average deposits grew 9.1% YoY and 1.6% sequentially, reaching Rs 15,57,449 crore in the quarter. Current account deposits rose 12.6% YoY, while savings account deposits increased by 8.5%. The CASA (Current Account Savings Account) ratio stood at 39.2% in Q2 FY26.
ICICI Bank’s total period-end deposits rose by 7.7% YoY to Rs 16,12,825 crore as of September 30, 2025. Its domestic loan portfolio also showed a strong 10.6% YoY expansion, reaching Rs 13,75,260 crore.
Here’s what analysts say:Elara Capital: Buy| Target price: Rs 1,707
Post the bank’s Q2 results, domestic brokerage firm Elara Capital maintained a ‘Buy’ rating on ICICI Bank, setting a target price of Rs 1,707. According to the brokerage, the bank’s Q2FY26 performance was steady, which further reinforces the bank’s earnings resilience.
Elara noted that the impact on net interest margin (NIM) during the quarter was lower than initially anticipated, reflecting the bank’s strong operational capabilities. Additionally, asset quality continues to remain robust, sustaining the bank’s strong performance trend.
Morgan Stanley: Overweight| Target price: Rs 1,800
Morgan Stanley has maintained an ‘Overweight’ rating on ICICI Bank, assigning a target price of Rs 1,800. The brokerage highlighted strong deposit growth, noting that average CASA (Current Account and Savings Account) deposits grew 10% year-on-year (YoY), while total deposits increased 9% YoY. Retail LCR (Liquidity Coverage Ratio) deposits also rose by 12% YoY and 3% quarter-on-quarter (QoQ).
Loan growth was up 3% QoQ, driven primarily by the retail segment, though the overall YoY growth moderated to 10.6%. Net interest margin (NIM), excluding the IT refund, was reported at 4.30%, up approximately 3 basis points QoQ. Net interest income (NII) rose by 1% QoQ and 7% YoY, coming in 1% above estimates.
ICICI Bank shares closed 1.4% higher at Rs 1,436.70 on the BSE on Friday.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)