ICICI Bank Q3 results: ICICI Bank reported a mixed set of earnings for the third quarter of FY26 (ended December 31, 2025), as higher provisioning weighed on profitability despite healthy core income growth. The country’s second-largest private sector lender posted a 4% year-on-year decline in standalone net profit, while its net interest income (NII) remained resilient, underscoring underlying business momentum.
Profit Impacted by Elevated Provisions
The bank’s standalone net profit slipped to ₹11,318 crore, compared with ₹11,792 crore in the corresponding quarter last year. The decline came in below Street expectations, primarily due to higher credit provisions, reflecting a cautious stance amid evolving macro and sector-wide risk trends.
However, analysts note that pre-provision operating profit remained strong, supported by steady loan growth and stable margins. The provisioning increase appears more preventive than stress-driven, as asset quality indicators continue to remain comfortable.
Net Interest Income Drives Core Strength
Despite pressure on the bottom line, net interest income climbed 8% YoY, highlighting robust balance sheet expansion. Loan demand across retail, business banking, and select corporate segments remained healthy, while deposit growth ensured funding stability.
Domestic advances grew by approximately 14% year-on-year to around ₹13.4 lakh crore, broadly in line with the growth trajectory seen in recent quarters. Deposits also expanded nearly 14% YoY, crossing ₹16 lakh crore, helping the bank maintain a stable CASA ratio.
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Balance Sheet and Asset Quality Snapshot
ICICI Bank’s balance sheet continues to reflect strength and prudence. Gross non-performing assets (GNPA) are estimated to hover around 2%, while net NPAs remain among the lowest in the sector based on recent trends. Capital buffers also stay healthy, providing room for future growth.
| Key Metrics | Q3 FY26 Snapshot |
|---|---|
| Net Profit | ₹11,318 crore |
| YoY Profit Change | -4% |
| Net Interest Income | +8% YoY |
| Domestic Advances | ~₹13.4 lakh crore |
| Deposit Base | ~₹16+ lakh crore |
| Capital Adequacy | >16% |
| CET-1 Ratio | ~16% |
Leadership Continuity and Strategic Direction
In a key governance update, the board approved a two-year extension for MD & CEO Sandeep Bakhshi, reinforcing leadership continuity at a time of economic transition. Under his stewardship, the bank has consistently strengthened asset quality, improved profitability metrics, and expanded its digital and retail footprint.
Retail loans now account for about 52% of the overall portfolio, while the business banking segment continues to outperform, recording growth of over 30% year-on-year. Subsidiaries also delivered stable operational performance, supporting consolidated earnings visibility.
Outlook: Focus Shifts to Q4 Recovery
Looking ahead, investors are likely to watch Q4 FY26 trends closely for normalization in credit costs and sustained margin performance. With economic momentum improving and capital adequacy remaining strong, ICICI Bank appears well-positioned to return to a stronger profit growth trajectory in the coming quarters.
References
- https://www.icici.bank.in/about-us/news-room/2025/performance-review-quarter-ended-march-31-2025
- https://www.cnbctv18.com/market/earnings/icici-bank-share-price-q3fy24-net-profit-nii-npa-revenue-quarterly-earnings-results-19546317.htm
- https://upstox.com/news/market-news/earnings/icici-bank-q3-results-net-profit-falls-4-yo-y-to-11-318-crore-nii-surges-8/article-187913/
Yogesh Kolhe is a market and business news author with a focus on the automobile sector and gold and silver price movements, offering readers practical insights into industry and market trends.
