ICICI Bank's Q2 profit jumps 20% as net interest income rises 18%, margins dip

ICICI Bank posted a 20% rise in second‑quarter net profit, driven by an 18% increase in core net interest income, the bank’s main earnings source. Core profitability slipped slightly because FCNR(B) deposits weighed on margins. The net interest margin fell to 4.18%, showing the spread between loan yields and funding costs narrowed. Treasury operations turned to a loss as higher government‑bond yields increased funding expenses for the bank’s securities book. ## Context FCNR(B) deposits are foreign‑currency accounts for non‑resident Indians that typically carry higher interest costs, which can compress a bank’s margin. When government‑bond yields rise, the cost of holding these securities rises, often pushing treasury results into the red.