ICICI Bank Q1 Results 2025: Strong Profit Growth Surpasses Estimates
ICICI Bank reported its Q1 FY25 results with a robust 15% rise in net profit, beating street estimates. Here’s an in-depth analysis of its earnings, asset quality, and market outlook.
Table of Contents
Introduction
India’s second-largest private sector lender, ICICI Bank, announced its financial results for the first quarter of FY25 on July 20, 2025. The bank reported numbers that surpassed analyst expectations, reinforcing its position as a consistent performer in the banking sector despite economic volatility and rising borrowing costs.
This article covers:
Key financial highlights
Detailed performance analysis
Asset quality trends
Stock market reactions and future outlook
ICICI Bank Q1 Results 2025 – Key Highlights
Net Profit Performance
Standalone net profit: ₹12,768 crore for Q1 FY25, up 15% year-on-year.
The net profit was above street estimates of around ₹12,500 crore.
Net Interest Income (NII) Growth
NII stood at ₹19,093 crore, marking a 16% YoY increase, supported by robust loan growth and stable margins.
Net interest margin (NIM): Stable at 4.1%, indicating efficient lending and deposit management amid rising deposit costs in the banking system.
Loan Book and Deposits Growth
Advances Growth
ICICI Bank’s domestic loan book expanded by 16% YoY, driven by:
Retail loans growth of 18%
SME and business banking growth of 19%
Corporate loans rising at 12%
Deposits Performance
Total deposits: ₹13.5 lakh crore, up 14% YoY
CASA ratio: Stable at 43.2%, indicating a healthy low-cost deposit base supporting profitability.
Asset Quality – GNPA and NNPA
Gross NPA Levels
Gross NPA ratio: Improved to 2.8% from 2.95% sequentially, reflecting prudent credit risk management.
Net NPA Levels
Net NPA: Reduced to 0.5%, showcasing strong underwriting standards and effective recoveries.
Provisioning
The bank’s provisions for the quarter stood at ₹1,200 crore, lower compared to ₹1,500 crore in Q4 FY24 due to improved asset quality.
Fee Income and Other Income
Non-Interest Income
Fee income: Rose by 12% YoY to ₹5,400 crore, driven by strong retail banking fees, credit cards, and distribution income.
Market Reaction and Stock Performance
Share Price Movement
ICICI Bank shares reacted positively post-results, opening higher on NSE and trading in the range of ₹1,120 to ₹1,140, reflecting investor confidence in:
Strong earnings visibility
Stable asset quality
Continued market share gains in retail lending
Brokerage Views
Brokerages like Motilal Oswal and Nomura retained BUY ratings, citing:
Robust loan growth
Healthy margins
Stable GNPA/NNPA levels
Target prices range between ₹1,300 – ₹1,350 over the next 12 months.
Strategic Initiatives
Technology Investments
ICICI Bank continues to invest in digital banking and AI-enabled platforms to enhance customer experience and operational efficiency, strengthening its competitive positioning against peers like HDFC Bank and Axis Bank.
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FAQ
What was ICICI Bank’s net profit for Q1 FY25?
ICICI Bank reported a standalone net profit of ₹12,768 crore, registering a 15% YoY growth.
How did ICICI Bank’s asset quality perform this quarter?
The bank’s GNPA ratio improved to 2.8%, and NNPA reduced to 0.5%, indicating robust asset quality management.
What is the growth in ICICI Bank’s loan book?
Domestic advances grew by 16% YoY, with retail loans growing at 18%, SME loans at 19%, and corporate loans at 12%.
What was ICICI Bank’s net interest margin (NIM) in Q1 FY25?
NIM stood at 4.1%, stable compared to the previous quarter, reflecting efficient lending and deposit cost management.
Conclusion
ICICI Bank delivered strong Q1 FY25 results, beating market estimates with solid profit growth, improved asset quality, and healthy advances expansion. Its strategic focus on digital transformation, stable margins, and prudent risk management positions it well to sustain growth in an increasingly competitive banking environment.
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