By Admin 
ICICI Bank Q3 Results: Private sector lender ICICI Bank announced its December quarter results on Saturday. During the third quarter ending December 31, 2025, the bank’s profit after tax (PAT) was reported at Rs 11,318 crore, which is 4 percent less than Rs 11,792 crore in the same quarter a year ago. The increase in provisioning can be clearly seen on the operating performance of the bank. The bank said that due to the instructions of the Reserve Bank of India (RBI), there has been an increase in provisioning.
The bank said in its earnings report that due to growth in net interest income and fee income, its core operating profit increased by 6 percent year-on-year to Rs 17,513 crore in Q3FY26. According to the earnings report, Net Interest Income (NII) increased by 7.7 per cent YoY to Rs 21,932 crore, while Net Interest Margin (NIM) improved slightly to 4.30 per cent from 4.25 per cent in Q3FY25 and remained unchanged from Q2FY26.
What was the non-interest income?
In the October-December quarter of the financial year 2025-26, non-interest income (except treasury) increased by 12.4 percent on an annual basis to Rs 7,525 crore, which includes fee income of Rs 6,572 crore, which is 6.3 percent higher on an annual basis. About 78 percent of the total fees in this quarter came from retail, rural and business banking customers.
According to the bank, operating expenses increased by 13.2 percent year-on-year to Rs 11,944 crore, which includes an estimated provision of Rs 145 crore under the new labor code. The bank reported a treasury loss of Rs 157 crore in this quarter, whereas there was a profit of Rs 371 crore in the same period last year, which shows the fluctuations in the market.
Provision increased in Q3FY26
Provisions (except tax) in Q3FY26 increased to Rs 2,556 crore from Rs 1,227 crore in Q3FY25. This included additional standard asset provision of Rs 1,283 crore after the annual supervisory review of the Reserve Bank of India. RBI directed the bank to make this provision on the portfolio of agriculture priority sector loans, where some facilities were found not to be as per the priority sector lending classification rules. The bank clarified that there is no change in the asset classification terms or repayment behavior of the borrower and this provision will remain in place until the loans are repaid or renewed as per the regulatory guidelines.
asset quality improvement
The earnings report showed that average deposits increased by 8.7 percent year-on-year to Rs 15,86,088 crore, with the average CASA ratio at 39 percent. During this period, total deposits also increased by 9.2 percent on annual basis to Rs 16,59,611 crore. Domestic loan portfolio increased by 11.5 percent on annual basis to Rs 14,30,895 crore.
On the asset quality front, net NPA improved to 0.37 percent on a quarterly basis, compared to 0.39 percent in the previous quarter. The gross NPA ratio also decreased to 1.53 percent by the end of December, which was 1.58 percent in September 2025 and 1.96 percent a year ago. Gross NPAs increased by Rs 5,356 crore in the quarter, down from Rs 6,085 crore in the December quarter last year, while recoveries and upgrades (excluding write-offs and sales) stood at Rs 3,282 crore. The bank wrote off gross NPA of Rs 2,046 crore in this quarter.
On Friday, shares of ICICI Bank fell 0.46 percent and closed at Rs 1,411.65. The market capitalization of the bank decreased to Rs 10.09 lakh crore.
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