ICICI Bank vs Axis Bank (2026): NIM, NPAs, Loan Growth & Which Is Better?
ICICI Bank and Axis Bank are both growing loans at roughly 19%, both have gross NPAs close to 1.3%, and both are strongly capitalised. Yet the earnings underneath those superficially similar numbers are quite different.
ICICI Bank earns a 4.36% NIM and generated ₹14,805 crore of standalone quarterly profit. Axis Bank's NIM is 3.46% and PAT was ₹7,114 crore.
Axis, however, is no longer the slower-growth challenger. Its deposits rose 18% year on year, advances grew 19%, SME loans grew 25% and corporate loans grew 38%. PAT jumped 23%.
So the useful question is not whether Axis has "caught" ICICI. It has not. The better question is whether Axis is closing the quality and growth gap quickly enough to become a more serious alternative.
The answer in one paragraph
ICICI Bank currently has the stronger all-round franchise economics, while Axis Bank is showing the faster improvement trajectory.
ICICI's NIM is almost 90 basis points higher. Its net NPA ratio is lower. Its CET-1 ratio is higher. Its quarterly profit is more than twice Axis Bank's. Its loan growth is marginally faster.
Axis wins on Q1 FY2027 PAT growth, has slightly lower gross NPAs and is growing deposits at 18%, materially faster than ICICI's 14% period-end deposit growth.
The gap is therefore narrowing in some operating areas, but ICICI still has the stronger current economics.
ICICI Bank vs Axis Bank: Q1 FY2027 scoreboard
| Metric | ICICI Bank | Axis Bank | Current Edge |
|---|---|---|---|
| Market capitalisation | ₹10.16 lakh Cr | ₹4.08 lakh Cr | ICICI Bank |
| Q1 FY27 PAT | ₹14,805 Cr | ₹7,114 Cr | ICICI on scale |
| PAT growth YoY | 15.9% | 23% | Axis Bank |
| Net interest income | ₹24,384 Cr | ₹14,646 Cr | ICICI Bank |
| NII growth YoY | 12.7% | 8% | ICICI Bank |
| NIM | 4.36% | 3.46% | ICICI Bank |
| Loan portfolio / net advances | ₹16.31 lakh Cr | ₹12.62 lakh Cr | ICICI Bank |
| Loan growth YoY | 19.6% | 19% | Essentially tied; ICICI slightly |
| Period-end deposits | ₹18.34 lakh Cr | ₹13.73 lakh Cr | ICICI Bank |
| Deposit growth YoY | 14.0% | 18% | Axis Bank |
| CASA ratio | 38.1% average | 37% average; 38% period-end | Very close |
| Gross NPA ratio | 1.38% | 1.28% | Axis Bank |
| Net NPA ratio | 0.35% | 0.39% | ICICI Bank |
| Total capital adequacy | 16.84% | 16.67% | ICICI slightly |
| CET-1 | 16.19% | 14.64% | ICICI Bank |
| Standalone annualised ROE | Not directly stated in current summary | 14.16% | Axis disclosed current figure |
| Branches | 7,608 | 6,295 | ICICI Bank |
| Bull Run Score | 42.3/100 | 40.6/100 | ICICI slightly |
The biggest difference is not loan growth. It is margin
ICICI Bank and Axis Bank are growing their loan books at nearly the same rate, but ICICI earns a much wider net interest margin.
ICICI reported 4.36% NIM in Q1 FY2027.
Axis Bank reported 3.46%.
A roughly 90-basis-point spread is substantial for two large private banks.
The difference helps explain why ICICI generated ₹24,384 crore of NII on a ₹16.31 lakh crore loan portfolio, while Axis generated ₹14,646 crore of NII on ₹12.62 lakh crore of net advances.
Not every basis point of margin directly translates to sustainable profit because loan mix, funding mix, credit costs and fees differ. But the margin advantage gives ICICI more room to absorb normalisation elsewhere.
Axis Bank's 23% PAT growth is real, but context matters
Axis delivered the faster headline profit growth in Q1 FY2027, with PAT rising 23% to ₹7,114 crore.
That is a meaningful acceleration from the prior-year quarter, when reported asset quality was affected by technical recognition changes that increased provisions and reduced profit.
Axis's Q1 FY2027 improvement therefore reflects both better underlying performance and a more difficult base.
ICICI's 15.9% PAT growth came from a cleaner prior-year comparison and was accompanied by 20.9% growth in profit before tax excluding treasury.
The more conservative interpretation is that both banks reported strong earnings, but ICICI's growth is backed by a higher NIM and stronger NII growth.
Loan growth is almost a draw
ICICI's total loan portfolio grew 19.6% year on year; Axis's advances grew 19%.
The interesting difference is inside the books.
ICICI Bank
Retail loans grew 12%. Business banking grew 28.2%. Rural loans grew 35.4%. Domestic corporate loans grew 18.5%.
Axis Bank
Retail loans grew 8%. SME loans grew 25%. Corporate loans grew 38%. Mid-corporate loans grew 27%.
Both banks are therefore leaning more heavily on business and corporate segments than on traditional retail growth.
That can support faster balance-sheet expansion, but investors should monitor future credit costs because rapid corporate and SME growth behaves differently from seasoned mortgage portfolios.
Axis Bank wins the deposit-growth race
Axis's 18% year-on-year deposit growth is one of the strongest numbers in this comparison.
ICICI's period-end deposits grew 14% to ₹18.34 lakh crore.
Axis's deposits rose 18% to ₹13.73 lakh crore.
Axis also reported quarterly-average CASA growth of 13% and an average CASA ratio of 37%.
ICICI's average CASA ratio was 38.1%.
The low-cost funding mixes are therefore close, while Axis is currently adding deposits faster.
This is important because sustainable loan growth requires a deposit franchise that can keep pace without forcing the bank into increasingly expensive wholesale funding.
Asset quality produces a split decision
Axis Bank has the lower gross NPA ratio, while ICICI Bank has the lower net NPA ratio.
Axis reported gross NPAs of 1.28% and net NPAs of 0.39%.
ICICI reported gross NPAs of 1.38% and net NPAs of 0.35%.
The gap is small in both directions.
ICICI's gross NPA ratio improved from 1.67% a year earlier. Axis's improved from 1.57%.
Both are therefore showing healthier books rather than simply benefiting from static low NPAs.
Axis also reported annualised net credit cost of 0.63%, down 75 basis points year on year.
ICICI Bank has the stronger capital structure
The total CAR numbers are close, but ICICI has a materially higher CET-1 ratio.
ICICI's total capital adequacy ratio was 16.84% at June 30, 2026, with CET-1 at 16.19%.
Axis Bank's total CAR was 16.67%, with CET-1 at 14.64%.
The total-capital gap is only 17 basis points. The common-equity gap is around 155 basis points.
For investors, CET-1 deserves special attention because it represents the highest-quality regulatory capital available to absorb losses.
ICICI's absolute earnings power is still much larger
Axis Bank's quarterly PAT is growing faster, but ICICI generates more than twice the absolute standalone profit.
ICICI earned ₹14,805 crore in Q1 FY2027.
Axis earned ₹7,114 crore.
The same difference appears in net interest income: ₹24,384 crore for ICICI versus ₹14,646 crore for Axis.
That scale gives ICICI more room to fund technology, branches, subsidiaries, risk infrastructure and distribution while maintaining profitability.
Axis is becoming more interesting in business banking
The strongest part of Axis Bank's latest loan-growth story is not retail banking. It is the expansion of SME and corporate credit.
SME loans grew 25% year on year.
Corporate loans grew 38%.
Mid-corporate lending grew 27%.
The bank says small business banking, SME and mid-corporate loans now represent roughly 24% of total loans.
This diversification can improve fee income and deepen commercial relationships. It can also change the risk characteristics of the loan book.
The key question is whether Axis can maintain low credit costs as this faster-growing mix seasons.
ICICI's rural and business banking engines are growing even faster
ICICI's growth is also increasingly diversified beyond retail.
Business banking grew 28.2%.
Rural lending grew 35.4%.
Domestic corporate loans grew 18.5%.
Retail loans grew 12% and represented 49.2% of the total loan portfolio.
This makes ICICI less dependent on a single growth engine than it was in earlier phases of its retail-led transformation.
What the stock market currently prefers
Axis Bank has delivered the stronger one-year share-price return, while ICICI Bank has been stronger over the latest three months.
| Market Metric | ICICI Bank | Axis Bank |
|---|---|---|
| Price on 25 Aug 2026 | ₹1,422.70 | ₹1,235 |
| Market capitalisation | ₹10.16 lakh Cr | ₹4.08 lakh Cr |
| 1-month return | -0.71% | +0.63% |
| 3-month return | +11.79% | -5.30% |
| 6-month return | +1.27% | -11.50% |
| 1-year return | -0.73% | +15.42% |
| Distance from 52-week high | -3.87% | -12.92% |
| RSI (14) | 44.93 | 49.88 |
| FII holding | 34.48% | 43.00% |
| DII holding | 39.94% | 42.69% |
Axis's one-year return is stronger, but ICICI is much closer to its 52-week high and has clearly outperformed over the latest three- and six-month windows.
The mixed performance reinforces the idea that this is not a simple momentum comparison.
Axis Bank's improvement is now strong enough that investors should stop comparing it with its old self
Axis's recent numbers deserve to be judged against current private-bank peers, not against the bank's weaker historical periods.
The bank now has gross NPAs of 1.28%, net NPAs of 0.39%, 19% loan growth, 18% deposit growth, 23% PAT growth and annualised standalone ROE of 14.16%.
Those are credible large-private-bank numbers.
The remaining question is whether Axis can close the margin gap with ICICI without compromising loan pricing or risk discipline.
ICICI Bank's advantage is consistency across several metrics at once
ICICI does not dominate every line in the comparison, but it currently combines high margins, strong credit growth, low net NPAs and robust capital better than Axis.
A 4.36% NIM alongside 19.6% loan growth is a powerful combination.
Maintaining that combination is difficult because fast credit growth often forces banks to compete harder on pricing or funding.
ICICI's risk is therefore not that its current numbers are weak. It is that expectations around them are already high.
Where ICICI Bank leads
Current strengths
- 4.36% NIM.
- ₹14,805 crore Q1 FY27 PAT.
- 19.6% loan growth.
- 12.7% NII growth.
- 0.35% net NPA ratio.
- 16.19% CET-1.
- Larger deposit and loan franchises.
- Larger branch network.
- Much larger market capitalisation.
Risks to watch
- Strong expectations leave less room for earnings disappointment.
- Loan growth is running faster than deposit growth.
- Rapid rural and business banking growth requires disciplined underwriting.
- NIM durability must be monitored as rates and funding costs change.
Where Axis Bank leads
Current strengths
- 23% Q1 PAT growth.
- 18% deposit growth.
- 19% advance growth.
- 1.28% gross NPA ratio.
- 25% SME growth.
- 38% corporate loan growth.
- 14.16% annualised standalone ROE.
- Strong one-year share-price performance.
Risks to watch
- NIM remains materially below ICICI's.
- CET-1 is lower than ICICI's.
- Net NPA ratio is slightly higher.
- Fast corporate and SME growth can raise future credit-cycle sensitivity.
- Recent earnings growth partly benefits from an easier comparison base.
ICICI Bank vs Axis Bank: which wins each category?
Market capitalisation: ICICI Bank.
Loan-book size: ICICI Bank.
Deposit base: ICICI Bank.
Loan-growth rate: Almost tied, with ICICI slightly ahead.
Deposit-growth rate: Axis Bank.
Net interest margin: ICICI Bank.
NII growth: ICICI Bank.
Headline PAT growth: Axis Bank.
Gross NPA ratio: Axis Bank.
Net NPA ratio: ICICI Bank.
CET-1 capital: ICICI Bank.
Current one-year stock performance: Axis Bank.
Current three- and six-month stock performance: ICICI Bank.
ICICI Bank vs Axis Bank FAQs
Which bank is bigger?
ICICI Bank. It has the larger market capitalisation, deposit base, loan portfolio and branch network.
Which bank has the better NIM?
ICICI Bank at 4.36%, compared with Axis Bank at 3.46% in Q1 FY2027.
Which bank is growing loans faster?
The growth rates are almost identical. ICICI grew 19.6%; Axis grew 19%.
Which is growing deposits faster?
Axis Bank, at approximately 18% versus ICICI Bank at 14%.
Which bank has lower gross NPAs?
Axis Bank at 1.28%, compared with ICICI at 1.38%.
Which bank has lower net NPAs?
ICICI Bank at 0.35%, compared with Axis at 0.39%.
Which has stronger CET-1 capital?
ICICI Bank at 16.19%, versus Axis Bank at 14.64%.
Which stock performed better over one year?
Axis Bank in Bull Run's August 25, 2026 snapshot, with a return of about 15.4% versus ICICI Bank at approximately -0.7%.
Research sources
Disclaimer
This comparison is for educational and informational purposes only. Bank financial metrics are based primarily on Q1 FY2027 disclosures and Bull Run's market snapshot dated August 25, 2026. Margins, NPAs, deposits, advances, capital ratios and stock prices change over time. Nothing in this article recommends buying, selling or holding ICICI Bank, Axis Bank or any other security. Bull Run is not a SEBI-registered Research Analyst or Investment Adviser.