ICICI Bank Q2 results Preview: Profit growth seen muted as NIMs likely to compress sequentially

ICICI Bank is expected to report a muted second quarter for FY26, as net profit growth moderates and margins narrow amid a slowdown in loan growth. Analysts estimate the lender’s standalone net profit at ₹11,933 crore, up just 2% year-on-year (YoY) and down 7% sequentially, as pressure on net interest margins (NIMs) offsets steady credit expansion.

ICICI Bank’s standalone net interest income (NII), a key metric for measuring a lender’s profitability, in Q2FY26 is projected to rise 6% YoY to ₹21,284 crore, while pre-provision operating profit (PPOP) may grow 4% YoY to ₹17,379 crore.

Standalone  ₹ cr	2QFY25	1QFY26	2QFY26F	QoQ	YoY
Net Interest Income	₹20,048	₹21,634	₹21,284	-2%	6%
PPOP	₹16,723	₹18,746	₹17,379	-7%	4%
PAT	₹11,746	₹12,768	₹11,933	-7%	2%

Total advances are likely to expand 10% YoY to ₹14.04 lakh crore, with deposit growth expected at 9% to ₹16.39 lakh crore.

ICICI Bank may face margin woes

NIMs are expected to decline by around 14 basis points sequentially to 4.20% from 4.34% in Q1FY26, as the impact of the 50-basis-point repo rate cut transmission weighs on yields.

	1QFY26	2QFY26F	QoQ (% or basis points)
NIMs	4.34%	4.20%	(14)
Slippages	62,450	54,283	-13%
Credit cost	0.54%	0.4%	(11)

The bank’s NIM had surprised positively in Q1FY26, contracting only 7 bps versus expectations of an 18-bps fall. However, this quarter, the absence of one-offs and the lagged impact of rate cuts on external benchmark-linked loans — which account for roughly half of ICICI’s book — are likely to compress margins further.

Asset quality and credit cost trend

Slippages are expected to moderate to ₹54,283 crore from ₹62,450 crore in Q1FY26, with credit cost easing by 11 bps sequentially to 0.4%. The improvement is likely driven by easing stress in the Kisan Credit Card (KCC) and agricultural loan segments.

What the Street will watch out for in ICICI Bank results?

Investors will watch for commentary on the NIM trajectory and management’s outlook on loan growth in the second half, as system-wide credit momentum cools. Updates on slippage trends and deposit mobilisation will also be closely tracked.

While ICICI’s profitability remains strong, Q2FY26 could mark a phase of slower momentum as funding costs rise and the tailwind from past one-offs fades.