ICICI Bank Q3 net profit falls 4 percent on-year to Rs 11,318 crore as provisions weigh; asset quality stable

ICICI Bank

• ICICI Bank Q3 FY26 net profit fell 4 percent year-on-year to Rs 11,317.9 crore
• Net interest income up 7.7%; asset quality better with lower NPA ratios
• Provisions surged to Rs 2,556 crore, impacting quarterly profit

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ICICI Bank on Saturday reported a 4 percent year-on-year decline in standalone net profit for the fiscal third quarter, weighed down by a sharp rise in provisions, even as core operating performance remained stable and asset quality improved. The country's second-largest private sector lender posted a standalone net profit of Rs 11,317.9 crore for the quarter ended December 31, 2025 (Q3 FY26), compared with Rs 11,792.4 crore in the corresponding quarter last year.

Net interest income (NII) increased 7.7 percent year-on-year to Rs 21,932 crore in Q3 FY26 from Rs 20,371 crore in Q3 FY25, while net interest margin was 4.30 percent in the quarter, compared with 4.25 percent in the year-ago period and 4.30 percent in Q2 FY26, the bank said in a statement filed with the stock exchanges.

Ahead of the quarterly results, ICICI Bank share price fell 0.4 percent on Friday to end at Rs 1,413 on NSE. The stock has gained over 15 percent in the last one year, outperforming benchmark Nifty 50, which has returned less than 11 percent during the same period.

Operating expenses rose 13.2 percent year-on-year to Rs 11,944 crore from Rs 10,552 crore. The bank said this included Rs 145 crore of provisions on an estimated basis pursuant to the new Labour Codes. Treasury movements also weighed on the quarter, with the bank reporting a treasury loss of Rs 157 crore, compared with a gain of Rs 371 crore in Q3 FY25.

Core operating profit grew 6.0 percent year-on-year to Rs 17,513 crore in Q3 FY26, reflecting steady growth in net interest income and fee income.

Asset quality improved slightly, with the gross NPA ratio at 1.53 percent as of December 31, 2025, compared with 1.58 percent at September 30, 2025 and 1.96 percent a year earlier. The Gross NPAs fell to Rs 23,758 crore from Rs 27,745 crore a year ago.

The net NPA ratio stood at 0.37 percent at December 31, 2025, versus 0.39 percent at September 30, 2025 and 0.42 percent at December 31, 2024.

Provisions (excluding provision for tax) rose to Rs 2,556 crore in Q3 FY26 from Rs 1,227 crore in Q3 FY25. The bank said this included an additional standard asset provision of Rs 1,283 crore, made pursuant to the Reserve Bank of India’s annual supervisory review, in respect of a portfolio of agricultural priority sector credit facilities where the terms were found not to be fully compliant with regulatory requirements for classification as agricultural priority sector lending.

The domestic loan portfolio grew 11.5 percent year-on-year to Rs 14.31 lakh crore at December 31, 2025. Including profits for the nine months ended December 31, 2025, the bank said total capital adequacy ratio was 17.34 percent and CET-1 ratio was 16.46 percent on a standalone basis at December 31, 2025.

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