ICICI Bank reported a 4 per cent year-on-year (y-o-y) decline in third quarter (Q3FY26) standalone net profit at ₹11,318 crore. The bottomline was weighed down by a substantial jump in overall provisions, including additional standard asset provision of ₹1,283 crore made in respect of a portfolio of agricultural priority sector credit pursuant to RBI directions.
India’s second largest private sector bank logged a net profit of ₹11,792 crore in the year ago quarter.
The RBI, following its annual supervisory review for FY25, directed the Bank to make a standard asset provision of ₹1,283 crore in respect of a portfolio of agricultural priority sector credit facilities ( ₹20,000 crore- ₹25,000 crore), wherein the terms of the facilities were found to be not fully compliant with the regulatory requirements far classification as agricultural priority sector lending, said Sandeep Batra, Executive Director.
He emphasised that there is no change in asset classification or in the terms and conditions applicable to the borrowers or in the repayment behaviour of borrowers as per these terms.
Further, this additional standard asset provision will continue until the loans are repaid or renewed in conformity with the Priority sector classification guidelines.
Net interest income (difference between interest earned and interest expended) in the reporting quarter was up 8 per cent year-on-year (y-o-y) to ₹21,932 crore (₹20,371 crore in the year ago period).
Other income, including fee-based income, treasury income and recovery in written-off account, increased about 4 per cent y-o-y to ₹7,368 crore (₹7,068 crore).
Net interest margin was up 5 basis points to 4.30 per cent from 4.25 per cent a year ago. Batra said NIM has more or less stabilized around the 4.3 level. But the impact of the December 2025 repo rate cut is likely to flow in again during the current quarter.
“Now, looking ahead, we do expect NIMs to remain more or less range-bound, reflecting the repricing of the external benchmarks on loans and investments, and of course, competitive intensity. This would get, in part, offset by retail term deposit repricing.
“And we will continue to watch the market conditions. And if there are any further changes in monetary policy, that will impact the NIM trajectory. From our perspective, we are focused on maximizing all levers of profits, and where NIM is certainly one of the important levers,” he said.
Overall provisions, including standard asset provision of ₹ 1,283 crore in respect of a portfolio of agricultural priority sector credit facilities and ₹145 crore reflecting provisions on an estimated basis pursuant to the new Labour Code, jumped 108 per cent to ₹2,556 crore ( ₹1,227 crore). Income tax outgo was about 10 per cent lower at ₹3,483 crore ( ₹3,867 crore).
Gross Non-Performing Assets (NPA) position improved to 1.53 per cent of gross advances as at December-end 2025 against 1.96 per cent as at December-end 2024. Net NPAs nudged lower to 0.37 per cent of net advances from 0.42 per cent a year ago.
Gross advances increased by 11.50 per cent y-o-y to ₹1,466,154 crore as of December-end 2025, with business banking clocking the highest growth at 22.8 per cent, followed by overseas advances (11.6 per cent), retail loans (7.2 per cent), and domestic corporate (5.6 per cent).
Within retail loans, two segments de-grew – credit cards (3.5 per cent) and loan against shares & others (0.8 per cent).
Total deposits grew 9.16 per cent you to ₹1,659,611 crore as at December-end 2025. Average current account, savings account (CASA) was unchanged at 39 per cent of domestic deposits.
Published on January 17, 2026
