ICICI Bank Q3: Profit slips 4% to ₹11,318 crore; CEO Bakhshi gets 2-year extension
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ICICI Bank has reported a profit after tax (PAT) of ₹11,318 crore for the third quarter ended December 31, 2025, 4% lower than ₹11,792 crore a year ago, as higher provisions offset steady growth in core operating performance.
The bank, in its earnings report, said that its core operating profit rose 6% year-on-year to ₹17,513 crore in Q3FY26, supported by growth in net interest income and fee income. Net interest income (NII) increased 7.7% YoY to ₹21,932 crore, while net interest margin (NIM) improved slightly to 4.30%, compared with 4.25% in Q3FY25 and unchanged sequentially from Q2FY26, the earnings report showed.
For the October–December quarter of the current fiscal, non-interest income (excluding treasury) grew 12.4% YoY to ₹7,525 crore, driven by fee income of ₹6,572 crore, up 6.3% YoY. Fees from retail, rural and business banking customers accounted for about 78% of total fees during the quarter.
According to the bank, operating expenses rose 13.2% YoY to ₹11,944 crore, including ₹145 crore of estimated provisions pursuant to the new labour codes. The bank reported a treasury loss of ₹157 crore during the quarter, compared with a gain of ₹371 crore in the year-ago period, reflecting adverse market movements.
Provisions (excluding tax) increased sharply to ₹2,556 crore in Q3FY26 from ₹1,227 crore in Q3FY25. This included an additional standard asset provision of ₹1,283 crore following the Reserve Bank of India’s annual supervisory review.
The RBI directed the bank to make this provision on a portfolio of agricultural priority sector loans where certain facilities were found to be non-compliant with priority sector lending classification norms. The bank clarified that there was no change in asset classification, borrower terms, or repayment behaviour, and that the provision will remain until the loans are repaid or renewed in line with regulatory guidelines.
January 2026
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The earnings report showed that average deposits grew 8.7% YoY to ₹15,86,088 crore, with an average CASA ratio of 39%. Total deposits at period-end rose 9.2% YoY to ₹16,59,611 crore as of December 31, 2025. The domestic loan portfolio expanded 11.5% YoY to ₹14,30,895 crore.
Asset quality improves
On the asset quality front, the gross NPA ratio improved to 1.53% at December-end from 1.58% in September 2025 and 1.96% a year earlier. The net NPA ratio also declined to 0.37%, compared with 0.39% sequentially and 0.42% YoY. The provisioning coverage ratio stood at 75.4%.
Gross NPA additions during the quarter were ₹5,356 crore, lower than ₹6,085 crore in Q3FY25, while recoveries and upgrades (excluding write-offs and sales) amounted to ₹3,282 crore. The bank wrote off ₹2,046 crore of gross NPAs during the quarter.
The release noted that the bank’s capital adequacy remained comfortable, with a total capital adequacy ratio of 17.34% and a CET-1 ratio of 16.46% on a standalone basis, including profits for the nine months ended December 31, 2025.
Sandeep Bakhshi’s tenure extended for 2 years
ICICI Bank, in a separate release, said that its board has approved the reappointment of Sandeep Bakhshi as managing director and CEO for a further two-year term, from October 4, 2026, to October 3, 2028. Bakhshi, who first took over as MD and CEO in October 2018, was earlier granted an extension through October 2026. He has been associated with the ICICI Group since 1996.
On Friday, ICICI Bank’s shares closed at ₹1,411.65, down 0.46%, while its market capitalisation slipped to ₹10.09 lakh crore.