ICICI Bank Q3 FY2026 results show resilient core income despite softer profit

ICICI Bank reported softer profits for Q3 FY2026, even as lending, deposits and asset quality improved. Profit before tax, including treasury, fell to Rs 14,800 crore from Rs 15,660 crore a year earlier, while profit after tax declined to Rs 11,318 crore from Rs 11,792 crore. Core operating profit and net interest income, however, continued to grow during the quarter.

Asset quality indicators strengthened further by December 31, 2025. The gross non-performing asset ratio eased to 1.53%, improving from 1.58% on September 30, 2025 and 1.96% on December 31, 2024. The net NPA ratio reduced to 0.37%, compared with 0.39% in the previous quarter and 0.42% a year earlier, pointing to better recoveries and risk controls.

Fresh gross NPA additions declined to Rs 5,356 crore in Q3 FY2026 from Rs 6,085 crore in Q3 FY2025. Recoveries and upgrades, excluding write-offs and sales, stood at Rs 3,282 crore, slightly below Rs 3,392 crore last year. Net additions to gross NPAs reduced to Rs 2,074 crore against Rs 2,693 crore in Q3 FY2025, reflecting more contained slippages.

The bank wrote off gross NPAs worth Rs 2,046 crore during the quarter, trimming the legacy stressed book. The provisioning coverage ratio on non-performing loans remained high at 75.4% as of December 31, 2025. Total provisions, excluding specific provisions on fund-based NPAs, stood at Rs 22,657 crore, equal to 1.5% of total loans, providing a sizeable cushion against credit risks.

Despite improved asset quality, provisions excluding tax almost doubled year-on-year. Provisions rose to Rs 2,556 crore in Q3 FY2026 from Rs 1,227 crore in Q3 FY2025. The bank also faced a treasury loss of Rs 157 crore, compared with a treasury gain of Rs 371 crore in the same quarter last year, weighing on overall profitability.

Core earnings stayed resilient even as headline profits softened. Excluding treasury, profit before tax was Rs 14,957 crore, compared with Rs 15,289 crore a year earlier. Core operating profit increased 6.0% year-on-year to Rs 17,513 crore, up from Rs 16,516 crore in Q3 FY2025, supported by higher net interest income and non-interest income.

Net interest income climbed 7.7% year-on-year to Rs 21,932 crore in Q3 FY2026 from Rs 20,371 crore in Q3 FY2025. Net interest margin edged up to 4.30% from 4.25% a year earlier and stayed unchanged sequentially from Q2 FY2026. This indicated stable pricing power despite competitive pressure in both retail and corporate lending markets.

Non-interest income excluding treasury also increased. It rose 12.4% year-on-year to Rs 7,525 crore in Q3 FY2026, compared with Rs 6,697 crore in Q3 FY2025. Within this, fee income registered steady growth of 6.3%, moving from Rs 6,180 crore to Rs 6,572 crore. These streams helped diversify revenue away from pure lending income during the quarter.

ICICI Bank Q3 FY2026 results: Costs, deposits and CASA trends

Operating expenses grew faster than income, adding pressure on margins. Total operating expenses increased 13.2% year-on-year to Rs 11,944 crore, versus Rs 10,552 crore in Q3 FY2025. This included expected provisions of Rs 145 crore related to the new Labour Codes, alongside higher business volumes and continued investment in distribution, technology and staff.

Deposit mobilisation remained steady through Q3 FY2026, aided by retail and CASA flows. Average deposits rose 8.7% year-on-year and 1.8% sequentially to Rs 15,86,088 crore. Average current and savings account deposits increased 8.9% year-on-year and 1.5% sequentially, signaling stable low-cost funding support. Total period-end deposits reached Rs 16,59,611 crore, higher than Rs 16,12,825 crore on September 30, 2025.

Metric	Q3 FY2025	Q3 FY2026
PBT (including treasury)	Rs 15,660 crore	Rs 14,800 crore
PAT	Rs 11,792 crore	Rs 11,318 crore
Net interest income	Rs 20,371 crore	Rs 21,932 crore
Gross NPA ratio	1.96%	1.53%
Net NPA ratio	0.42%	0.37%

ICICI Bank Q3 FY2026 results: Advances, balance sheet and capital base

Loan growth remained broad-based and firm through the period. Net domestic advances expanded 11.5% year-on-year and 4.0% sequentially as of December 31, 2025, compared with 10.6% year-on-year and 3.3% sequential growth as of September 30, 2025. Overall advances stood at Rs 14,66,154 crore, up from Rs 14,08,456 crore in September 2025 and Rs 13,14,366 crore in December 2024.

The balance sheet continued to expand gradually, reflecting consistent growth in loans and deposits. Total capital and liabilities rose to Rs 21,90,591 crore as of December 31, 2025. This compared with Rs 21,36,271 crore at the end of September 2025 and Rs 20,13,343 crore on December 31, 2024, underlining the bank’s larger scale across businesses and customer segments.

Capital on the liabilities side stayed stable at Rs 1,430 crore as of December 31, 2025, marginally higher than Rs 1,429 crore on September 30, 2025. Reserves and surplus increased to Rs 3,19,205 crore, indicating internal capital generation and retained profits. Employee stock options outstanding rose to Rs 2,499 crore, reflecting compensation-linked equity allocations during the year.

ICICI Bank Q3 FY2026 results: Liquidity, investments and branch network

Liquidity buffers were maintained through investments and cash holdings. Cash and balances with the Reserve Bank of India stood at Rs 63,669 crore as of December 31, 2025. Money at call, short notice and bank balances totaled Rs 82,670 crore, while the investment portfolio was Rs 4,94,642 crore, offering a mix of yield, liquidity and regulatory compliance.

The physical network continued to expand over the financial year. ICICI Bank operated 7,385 branches as of December 31, 2025, after adding 402 branches during the first nine months of FY2026. The bank also managed 11,983 ATMs and cash recycling machines, helping support its retail franchise and service reach across different regions.

The Board of Directors met in Mumbai and approved the standalone and consolidated accounts for the quarter ended December 31, 2025. Overall, Q3 FY2026 showed modest pressure on profitability from treasury and higher provisions, while advances, deposits, core income and asset quality trends stayed positive, shaping ICICI Bank’s operating position for the remainder of the financial year.