ICICI Bank Q3 Results: Rs 11,318 Cr Profit, NPAs Fall To Just 1.53%; Balance Sheet Hits Rs 21.9 Lakh Cr

At today's meeting in Mumbai, the Board of Directors of ICICI Bank Limited approved the bank's standalone and consolidated accounts for the quarter that ended on December 31, 2025 (Q3-2026).

The bank's profitability dropped somewhat in Q3 FY2026. In Q3 FY2026, profit before tax (PBT), excluding treasury, was Rs 14,957 crore, down from Rs 15,289 crore in the same quarter the previous year. Due in major part to poor treasury performance during the quarter, PBT reportedly came in at Rs 14,800 crore, less than Rs 15,660 crore in Q3 FY2025.

Additionally, profit after tax (PAT) dropped from Rs 11,792 crore in Q3 FY2025 to Rs 11,318 crore in Q3 FY2026. Throughout the quarter, credit growth continued to be robust and widespread. As of December 31, 2025, net domestic advances had grown by 11.5% YoY and 4.0% sequentially, compared to 10.6% YoY and 3.3% sequentially as of September 30, 2025.

With core operating profit increasing 6.0% YoY to Rs 17,513 crore from Rs 16,516 crore in the same quarter last year, the bank recorded a consistent rise in its core profitability during Q3 FY2026. From Rs 20,371 crore in Q3 FY2025 to Rs 21,932 crore in Q3 FY2026, net interest income (NII) showed a robust 7.7% YoY rise.

Nonetheless, net interest margin (NIM) showed consistent margin performance in the face of competitive challenges, moderating to 4.30% in Q3 FY2026 from 4.25% in Q3 FY2025 and remaining unchanged sequentially from Q2 FY2026.

Excluding treasury, non-interest income increased by 12.4% YoY to Rs 7,525 crore from Rs 6,697 crore in the same quarter last year. Additionally, fee income climbed steadily by 6.3% YoY, from Rs 6,180 crore in Q3 FY2025 to Rs 6,572 crore in Q3 FY2026.

Operating expenses increased 13.2% YoY to Rs 11,944 crore from Rs 10,552 crore in the third quarter of FY2025. Higher cost pressures during the quarter are a result of this increase, which includes provisions of Rs 145 crore made on an expected basis in accordance with the implementation of the new Labour Codes.

In Q3 FY2026, provisions (excluding tax) climbed to Rs 2,556 crore from Rs 1,227 crore in the same quarter of the previous year, indicating a significant increase in provisioning levels. The bank reported a treasury loss of Rs 157 crore in Q3 FY2026 compared to a treasury gain of Rs 371 crore in Q3 FY2025, indicating poor treasury performance during that period.

With the help of both retail and CASA inflows, the bank recorded a steady rise in its deposit base during Q3 FY2026. To reach Rs 15,86,088 crore, average deposits grew by 1.8% sequentially and 8.7% annually. Additionally, average current and savings account (CASA) deposits jumped by 1.5% sequentially and 8.9% YoY, demonstrating consistent low-cost deposit accretion throughout the quarter.

As of December 31, 2025, total period-end deposits were Rs 16,59,611 crore, up 9.2% from Rs 16,12,825 crore as of September 30, 2025. Over the course of the quarter, asset quality metrics improved sequentially. As of December 31, 2025, the gross non-performing asset (NPA) ratio was 1.53%, down from 1.58% on September 30, 2025, and 1.96% a year earlier.

Similarly, the net NPA ratio improved to 0.37% from 0.39% in the previous quarter and 0.42% as of December 31, 2024, reflecting better credit discipline and recovery efforts.
From Rs 6,085 crore in Q3 FY2025 to Rs 5,356 crore in Q3 FY2026, gross NPA additions dropped. Excluding write-offs and sales, recoveries and upgrades of non-performing assets (NPAs) were Rs 3,282 crore for the quarter, somewhat less than Rs 3,392 crore for the same time last year.

Excluding write-offs and sales, net additions to gross non-performing assets (NPAs) dropped from Rs 2,693 crore in Q3 FY2025 to Rs 2,074 crore in Q3 FY2026. During the quarter, the bank wrote off gross NPAs amounting to Rs 2,046 crore. As of December 31, 2025, the provisioning coverage ratio on non-performing loans was still high at 75.4%, offering a substantial cushion against any concerns about asset quality.

The bank maintained a strong provisioning buffer to absorb potential credit risks. As of December 31, 2025, total provisions-excluding specific provisions on fund-based exposures classified as non-performing-stood at Rs 22,657 crore, equivalent to 1.5% of total loans.

Over the course of the period, the bank's balance sheet grew gradually, indicating consistent rises in advances and deposits. As of December 31, 2025, total capital and liabilities were Rs 21,90,591 crore, up from Rs 21,36,271 crore on September 30, 2025, and Rs 20,13,343 crore on December 31, 2024.

With capital at Rs 1,430 crore as of December 31, 2025, somewhat more than Rs 1,429 crore at the end of September 2025, the liabilities side's capital base was steady. Reserves and surplus climbed to Rs 3,19,205 crore, showing higher internal capital production and retained earnings, while employee stock options outstanding jumped to Rs 2,499 crore.

In terms of assets, advances increased steadily, reaching Rs 14,66,154 crore on December 31, 2025, up from Rs 14,08,456 crore on September 30, 2025, and Rs 13,14,366 crore on December 31, 2024. This rise is indicative of strong loan demand in both commercial and retail banking sectors.

Investments and cash balances were used to preserve liquidity buffers. As of December 31, 2025, cash and balances with the Reserve Bank of India totaled Rs 63,669 crore, while money at call and short notice and bank balances reached Rs 82,670 crore. At Rs 4,94,642 crore, investments were generally steady and offered a balance between yield, liquidity, and regulatory needs.

Throughout the year, ICICI Bank kept bolstering its physical distribution network. The network grew to 7,385 branches overall with the addition of 402 branches during the first nine months of FY2026. As of December 31, 2025, the bank also ran 11,983 ATMs and cash recycling machines, expanding its customer base and improving its ability to provide services across geographical regions.