ICICI Bank is the second largest privately owned bank in India, and all its Q2 FY26 results will be announced on the day of Saturday, October 18. Even before the announcement, major brokerage firms are forecasting a decent quarter for the banking giant with a net profit increase of up to 8.5 percent year-on-year (YoY) with net interest income (NII) increasing by an average of 10 percent despite the slight burden on net interest margins (NIMs).
ICICI Bank Q2 FY26 Preview Overview
ICICI bank has been considered to have a strong retail franchise with a healthy balance sheet, so it is likely to record a consistent performance amidst the compression of margin in the industry. It is believed that the increased operating cost and slower credit growth will have a minor impact on the profitability, however, the high asset quality and consistent fees of the bank will bother the overall earnings.
ICICI Bank Q2 Results Key Expectations.
The following are the nine key things to be aware of in the Q2 FY26 earnings report of ICICI bank:
1. Net Profit Growth.
Industry observers project the growth of profit after tax (PAT) in ICICI bank to range between 7 and 8.5 percent on a year-on-year basis due to average loan growth and good non-interest earnings.
2. Net Interest Income (NII):
Projected to grow 9-10 percent YoY, with the help of stable loan book growth, especially retail and SME.
3. Net Interest Margin (NIM):
Probably to shrink slightly on a quarterly basis, as a result of increasing the cost of funding and having to reprice deposits. The market analysts believe that NIMs will clear at around 4.4 percent.
4. Loan Book Growth:
The bank advances will increase by approximately 16-18 percent year-over-year whereby the home loans, personal loans, and vehicle finance are the front runners.
5. Deposit Growth:
Deposits can record a 12-13 percent year-on-year growth with a stable momentum in the term deposits due to the competitive rates in the sector.
6. Asset Quality:
The Gross NPA ratio will be stable at 2.4 with a few slippages. The policy of regular recovery and write-offs that the bank has put in place should assist in keeping its asset quality healthy.
7. Fee Income and Other Revenue:
The income of the cards, digital payments, and wealth management services will experience digit growth, which will help sustain total revenues.
8. Cost-to-Income Ratio:
May increase slightly since it is still investing in its digital growth, employee expenses, and branch extensions.
9. Provisions and Credit Costs:
It should be generally stable, with any sectoral risks being offset by low slippages and robust recoveries.
Analyst Commentary
Other brokerages like Motilal Oswal Financial Services, ICICI securities, and Axis securities have a Buy rating on ICICI Bank based on its powerful digital environment, consistent quality of assets and better ratios of returns.
Analysts believe that although margin compression may temporarily impinge on the sequential growth, the core operating performance and diversified retail base of the bank is of great merit.
Market Outlook
The stocks of ICICI Bank have been in a range in the last few weeks and this has been oscillating around the range of 1,150-1,170 on the NSE. The stock has been performing well with a year-to-date percentage change of almost 20 per cent and this indicates the confidence of the investors in the long term fundamentals of the bank.
The Q2 earnings season will also see the focus of the results of ICICI Bank, as it will shed light on the trends in the banking industry in the private sector, the momentum of credit growth and NIM management approaches.
Summary
Q2 FY26 performance at ICICI Bank is projected to feature a consistent increase in profits, high NII, and unchanged asset quality, but the pressure on the margin might slight the consecutive returns. This earnings season will be determined by the next announcement on October 18 which will establish the tone of private sector lenders.
