ICICI Bank shares rose 3% in early morning trade after the company published strong Q2 FY2024-25 results. Shares surged to a high of ₹1,295 before finishing 2.91% higher at ₹1,292 on the BSE, bringing the market capitalization to ₹9.1 lakh crore. The bank reported its second-quarter financial results over the weekend. In the second quarter of 2025, the company’s net profit increased by 14.5% to ₹11,746 crore from ₹10,261 crore in Q2 2024. Net interest income (NII) climbed by 9.5% to ₹20,048 crore in the quarter, up from ₹18,308 crore the previous year. The NII margin fell to 4.27% in Q2-2025 from 4.53% in Q2-2024.
The firm increased its target price from ₹1,450 per share to ₹1,470 per share, maintaining its ‘buy’ recommendation on the stock. Similarly, citing ICICI’s impressive performance in the face of stress in the larger unsecured lending market, Prabhudas Lilladher reaffirmed its “buy” recommendation and raised its target price from ₹1,520 to ₹1,640. In Q2FY25, ICICI’s provisions were 43 basis points, which is best-in-class when compared to other private peers’ 50-78 basis points. This suggests that over FY24-27E, provisions may stay lower at 40-50 basis points (compared to peers’ 50-65 basis points).
ICICI Bank Q2 results
The non-performing asset (NPA) ratios at ICICI Bank, led by Sandeep Bakhshi, improved at a period when other banks reported poor asset quality and increased slippages. The gross non-performing asset (GNPA) ratio of ICICI Bank decreased from 2.15 percent in Q1 FY25 to 1.97 percent in Q2 FY25. Additionally, the ratio improved from 2.48 percent in Q2 of FY24 on an annual basis.
Similarly, ICICI Bank’s NNPA ratio for Q2 FY25 was 0.42 percent, which was lower than the 0.43 percent recorded in Q1 FY25 and the 0.43 percent at the end of Q2 FY24. In the most recent quarter, gross slippages—new non-performing assets (NPAs) created during the quarter where a loan amount has not been paid for more than 90 days—amounted to Rs 5,073 crore. This contrasts with the Rs 5,916-crore slippage observed in FY25’s first quarter.
