How has been the historical performance of ICICI Bank?

Revenue and Profit Growth

Over the seven-year period ending March 2025, ICICI Bank's total income surged from ₹77,913 crore in 2019 to ₹1,91,770 crore in 2025, representing a compound growth trend driven primarily by rising interest earned and other income streams. Interest earned alone increased from ₹63,401 crore in 2019 to ₹1,63,264 crore in 2025, with interest on advances and bills constituting the largest component. This growth was complemented by a steady rise in other income, which reached ₹28,507 crore in 2025 from ₹14,512 crore in 2019.

Net interest income, a key profitability metric, expanded from ₹27,015 crore in 2019 to ₹81,164 crore in 2025, reflecting the bank's ability to manage interest margins effectively despite competitive pressures. Correspondingly, profit after tax (PAT) exhibited a remarkable increase, climbing from ₹3,363 crore in 2019 to ₹47,227 crore in 2025. Earnings per share (EPS) followed suit, rising from ₹5.22 to ₹66.30 over the same period, underscoring substantial value creation for shareholders.

Operational Efficiency and Margins

ICICI Bank has steadily improved its operating profit margins, with the operating profit before provisions and contingencies rising from ₹23,438 crore in 2019 to ₹67,299 crore in 2025. The operating profit margin (excluding other income) increased from 40.46% in 2019 to 71.18% in 2025, indicating enhanced cost management and revenue generation capabilities. Employee costs and other operating expenses have grown in line with the bank’s expansion but have been effectively controlled to sustain margin improvements.

Provisions and contingencies, a critical factor in banking profitability, have declined significantly from ₹19,661 crore in 2019 to ₹4,683 crore in 2025, reflecting improved asset quality and risk management. This reduction has positively impacted profit before tax, which surged from ₹3,777 crore in 2019 to ₹62,616 crore in 2025.

Asset Quality and Capital Adequacy

Asset quality has shown marked improvement, with gross non-performing assets (NPAs) decreasing from ₹46,292 crore in 2019 to ₹24,166 crore in 2025. Net NPAs similarly declined from ₹13,577 crore to ₹5,589 crore during this period. The percentage of net NPAs dropped from 2.06% to 0.39%, while gross NPAs fell from 6.7% to 1.67%, signalling a healthier loan book and effective recovery efforts.

The bank’s capital adequacy ratio (total) has remained comfortably above regulatory requirements, fluctuating around 16.5% in 2025, down slightly from a peak of 19.16% in 2022 but still reflecting a strong capital base. Tier 1 capital adequacy also remains robust at 15.94% in 2025.

Balance Sheet Expansion

ICICI Bank’s balance sheet has expanded significantly, with total assets growing from ₹11,01,137 crore in 2020 to ₹21,24,067 crore in 2025. Deposits have increased from ₹7,70,969 crore in 2020 to ₹16,10,348 crore in 2025, supporting the bank’s lending growth. Advances rose from ₹6,45,290 crore in 2020 to ₹13,41,766 crore in 2025, reflecting strong credit demand and market share gains.

Shareholders’ funds have also grown substantially, reaching ₹2,92,076 crore in 2025 from ₹1,16,504 crore in 2020, supported by retained earnings and capital infusion. The book value per share increased from ₹175.15 in 2020 to ₹404.80 in 2025, highlighting enhanced net worth per share.

Cash Flow and Liquidity

Cash and cash equivalents have shown a positive trend, with closing balances rising from ₹119,155 crore in 2020 to ₹185,562 crore in 2025. The bank has maintained healthy liquidity, supported by increasing balances with the Reserve Bank of India and other banks. Net increase in cash and cash equivalents was ₹45,635 crore in 2025, reflecting strong operational cash generation and prudent treasury management.

ICICI Bank’s CASA (current and savings account) ratio has remained stable around 38.4% in 2025, providing a low-cost deposit base that supports net interest margins. The net interest margin stood at 4.32% in 2025, consistent with prior years, indicating effective asset-liability management.

Branch and ATM Network

The bank has expanded its physical presence with 6,983 branches and 16,285 ATMs as of March 2025, up from 4,874 branches and 14,987 ATMs in 2019. This network growth supports customer acquisition and service delivery across India.

Conclusion

ICICI Bank’s historical performance over recent years reflects strong growth in income, profitability, and balance sheet size, alongside improving asset quality and operational efficiency. The bank has successfully navigated challenges to deliver consistent shareholder value, supported by prudent risk management and capital adequacy. These factors position ICICI Bank as a leading private sector bank with a solid foundation for future growth.

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