Why did ICICI Bank's net profit decrease in Q3 FY26?

ICICI Bank's net profit fell due to increased operating expenses, a treasury loss, and a significant standard asset provision mandated by the RBI.

What RBI directive impacted ICICI Bank's Q3 earnings?

The RBI directed ICICI Bank to make an additional standard asset provision of Rs 1,283 crore for agricultural priority sector credit facilities not meeting regulatory norms.

How did ICICI Bank's loan and deposit growth perform in Q3 FY26?

ICICI Bank saw strong growth, with total advances up 11.5% and total deposits up 9.2% as of December 2025.

Home / Business and Economy / ICICI Bank Profit Dips Amid Rising Costs

ICICI Bank Profit Dips Amid Rising Costs

17 Jan

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Summary

Standalone net profit fell 4.02% to Rs 11,318 crore in Q3 FY26.
RBI directed an additional standard asset provision of Rs 1,283 crore.
Total advances grew 11.5% to Rs 14,66,154 crore as of December 2025.

ICICI Bank Profit Dips Amid Rising Costs

ICICI Bank reported a 4.02% fall in standalone net profit for the third quarter of fiscal year 2026, with earnings dropping to Rs 11,318 crore from Rs 11,792 crore in the same period last year. This decrease was influenced by an increase in operating expenses and a treasury loss. The bank's net interest income rose by 7.7% year-on-year, reaching Rs 21,932 crore, and net interest margin improved to 4.30%.

The Reserve Bank of India has directed ICICI Bank to make a standard asset provision of Rs 1,283 crore. This is related to agricultural priority sector credit facilities that were not fully compliant with regulatory requirements for classification. While this provision impacts current earnings, the bank noted no change in asset classification or borrower behavior. Provisions, excluding tax, were Rs 2,556 crore in Q3 FY26, up from Rs 1,227 crore a year prior.

Despite the profit dip, ICICI Bank demonstrated robust balance sheet growth. Total advances increased by 11.5% year-on-year to Rs 14,66,154 crore as of December 31, 2025. Total deposits also grew by 9.2% to Rs 16,59,611 crore. The bank's gross non-performing asset (NPA) ratio improved to 1.53%, and the net NPA ratio stood at 0.37%.