ICICI Bank Q3 Profit Falls to ₹12,538 Crore Amid Higher Provisions
ICICI Bank Q3 FY26 net profit dips 2.68% to ₹12,538 crore despite strong loan growth.
Private sector lender ICICI Bank on Saturday reported a 2.68 per cent decline in its consolidated net profit for the December 2025 quarter, coming in at ₹12,537.98 crore. The figure compares with a profit of ₹12,883.37 crore in the same quarter last year and ₹13,537.06 crore in the September 2025 quarter, reflecting pressure on earnings despite healthy business growth.
On a standalone basis, the country’s second-largest private sector bank posted a profit after tax of ₹11,318 crore. While this marked a moderation from the year-ago period, the bank continued to demonstrate resilience in its core operations amid a challenging regulatory and provisioning environment.
ICICI Bank’s net interest income (NII), a key measure of core performance, rose 7.7 per cent year-on-year to ₹21,932 crore. This growth was supported by an 11.5 per cent expansion in loan book and a marginal improvement in net interest margin, which edged up by 5 basis points to 4.30 per cent during the quarter.
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Non-interest income, excluding treasury operations, also showed strong momentum, increasing 12.4 per cent to ₹7,525 crore. The rise reflects steady performance in fee-based businesses, including retail banking services and transaction-related income.
However, profitability was weighed down by a sharp rise in provisions, which more than doubled to ₹2,556 crore. The bank set aside ₹145 crore following the implementation of new labour codes and additionally made a ₹1,283 crore standard asset provision, as directed by the Reserve Bank of India after a supervisory review of agricultural loans.
While ICICI Bank’s underlying business growth remains solid, analysts note that higher regulatory provisioning and compliance-related costs could continue to impact near-term profitability. The bank’s ability to sustain margins and manage credit costs will be closely watched in the coming quarters.
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