ICICI Bank reported a 6% YoY increase in core operating profit to INR 175.13 billion but faced a challenge with an additional standard asset provision of INR 12.83 billion mandated by the RBI. Adjusted results showed profit before tax and after tax rising by approximately 6.2% and 4.1% YoY respectively.
Deposits and loans saw solid growth, with average deposits up 8.7% YoY, total deposits up 9.2%, CASA up 8.9% YoY, and domestic loans up 11.5% YoY. Credit quality remained strong, with net NPA at 0.37% and provisioning coverage at 75.4%. Capital ratios were robust, with CET1 at 16.46% and total CAR at 17.34%.
The bank focused on risk-calibrated, profitable growth in Q3 of 2026, emphasizing profit-before-tax growth excluding treasury and a customer-centric approach. Management highlighted steady margins, improved momentum in lending segments, and stable credit quality metrics amidst RBI-driven provisions.
The quarterly results included a core operating profit increase of 6% YoY to INR 175.13 billion, with total provisions at INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion. Profit after tax stood at INR 113.18 billion, impacted by a treasury loss of INR 1.57 billion.
ICICI Bank’s management addressed an RBI directive regarding agricultural priority sector credit facilities, stating no change in asset classification or borrower terms. They anticipate the provision to continue until loans comply with PSL guidelines, with an estimated portfolio of INR 200-250 billion needing work.
The bank’s net interest income rose by 7.7% YoY to INR 219.32 billion, with a net interest margin of 4.3%. Non-interest income, excluding treasury, increased by 12.4% YoY to INR 75.25 billion, driven by fee income from retail, rural, and business banking customers.
Operating expenses grew by 13.2% YoY, with employee expenses up 12.5% YoY. Non-employee expenses increased by 13.6% YoY. The bank reported a net NPA ratio of 0.37% at the end of December 2025, with provisioning coverage at 75.4% and contingency provisions of INR 131 billion.
Capital ratios remained strong, with a CET1 ratio of 16.46% and a total capital adequacy ratio of 17.34% as of December 31, 2025. Management reiterated its focus on maintaining a strong balance sheet, prudent provisioning, and healthy capital levels while aiming for market share gains in targeted segments.
Read more at Yahoo Finance: ICICI Bank Q3 Earnings Call Highlights