ICICI Bank has announced its financial results for the third quarter ending December 31, 2025. The bank reported a net profit of Rs 11,317.9 crore, marking a decline of 4.02% compared to the same period last year. This drop comes as provisions and contingencies saw a sharp increase, putting pressure on the bottom line.
Sequential Performance and Key Figures
On a sequential basis, the profit fell by 8.42% from Rs 12,358.9 crore in the previous quarter. The bank's executive director, Sandeep Batra, highlighted a specific issue during the results announcement. He explained that the Reserve Bank of India (RBI) identified a loan portfolio of Rs 25,000 crore within the bank's Rs 83,000 crore agriculture portfolio. According to the RBI, these loans did not comply with priority sector agriculture loan categorisation rules.
This discrepancy led to additional provisions of Rs 1,283 crore during the quarter. Without this provision, the net profit would have shown a growth of 4.1% instead of the reported 4% decline. The provisions and contingencies surged dramatically, rising 108.3% year-on-year and 179.6% quarter-on-quarter to reach Rs 2,555.6 crore.
Balance Sheet Growth and Income Trends
Despite the profit dip, the bank's balance sheet continued to expand at a healthy pace. Advances grew by 11.6% year-on-year and 4.1% quarter-on-quarter, reaching Rs 14.66 lakh crore. This growth reflects sustained credit demand in the market. Deposits also increased, rising 9.2% year-on-year and 2.9% sequentially to Rs 16.60 lakh crore.
The credit-deposit ratio stood at approximately 88.3%, indicating efficient deployment of deposits. Total income for the quarter saw a modest increase of 2% year-on-year, amounting to Rs 49,334 crore. Net interest income showed stronger growth, rising 7.7% to Rs 21,932.2 crore. This improvement was supported by a 4.3% decline in interest expended, signalling better cost-of-funds management.
Other Financial Metrics
Other income rose by 4.3% year-on-year to Rs 7,368.2 crore, though it slipped 2.7% on a sequential basis. This suggests some moderation in fee or treasury income during the quarter. Operating expenses climbed 13.2% year-on-year to Rs 11,944.4 crore, driven mainly by higher employee and operational costs. These expenses outpaced income growth, exerting pressure on the bank's efficiency.
Operating profit increased by a modest 2.8% to Rs 17,356 crore. Interestingly, asset quality showed improvement despite the spike in provisions. Gross non-performing assets (NPAs) declined to 1.53% from 1.58% in the preceding quarter and 1.96% a year ago. Net NPAs improved to 0.37%, indicating a resilient loan book.
Overall Assessment
In summary, ICICI Bank delivered steady balance sheet growth and stable core income during the December quarter. However, elevated provisioning and faster cost growth weighed significantly on profitability. The bank's performance reflects a mix of robust operational trends and specific challenges related to regulatory compliance and cost management.
