ICICI Bank Q2 profit jumps 20% on lower provisions, improved asset quality

India's second-largest private sector lender ICICI Bank posted stronger-than-expected quarterly earnings, with net profit climbing to Rs 14,843 crore in the quarter ended September 30, reflecting robust credit growth and operational efficiency gains.

The bank's net interest income, a key indicator of lending profitability, grew 17.7 per cent year-on-year to Rs 25,339 crore, outpacing overall loan growth and suggesting improved yields on its advances portfolio. The expansion came as ICICI maintained its focus on high-quality lending and customer acquisition across retail and corporate segments.

Provision expenses declined sequentially, contributing to the bottom-line growth. The bank's asset quality showed marked improvement, with the gross non-performing asset ratio contracting to 1.20 per cent, down from higher levels in previous quarters. This improvement reflects better collection efficiency and lower stress in the loan book.

The results underscore ICICI Bank's operational momentum as the Indian banking sector navigates moderating credit growth and competitive deposit pricing pressures. The lender's capital position remains robust, supporting continued business expansion and dividend distribution to shareholders.