ICICI Bank's margins slip as deposit costs weigh
ICICI Bank reported a 23.4% rise in profit before tax, but its net interest margin fell to 4.18%. Management expects further moderation in the third quarter.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
Large private sector banks, including ICICI Bank, saw year-on-year drops in net interest margins in the second quarter, as costs on foreign currency non-resident deposits and low lending margins weighed. ICICI Bank still posted 23.4% profit before tax growth and a net NPA of 0.30%, while its net interest margin slipped to 4.18%. Further moderation is expected in the third quarter before a recovery.
Why it matters
The margin pressure affects private lenders such as ICICI, HDFC and Axis, and the bank's earnings call pointed to a softer third quarter before any recovery.
Timeline
- Oct 19, 12:15 AM ET: Private banks, including ICICI, HDFC and Axis, were reported to face margin pressure from foreign currency deposit costs in the second quarter.
- Oct 19, 1:00 AM ET: ICICI Bank's earnings call highlighted 23.4% profit before tax growth and a net interest margin of 4.18%, with further moderation expected in the third quarter.
Coverage
- ICICI Bank Ltd (IBN) (Q2 2027) Earnings Call Highlights: Strong Deposit Growth and Asset ... (Yahoo News)
- FCNR Deposits Weigh on Private Banks' Margins (TradingView)
- ICICI Bank: 3 Key Takeaways for Long-Term Investors (Yahoo News)
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