What Caused ICICI Bank's Q3 Profit to Drop to Rs 12,537.98 Crore While Asset Quality Improves?
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Synopsis
ICICI Bank's latest financial report reveals a decline in profits but an improvement in asset quality. The bank's net profit for Q3 FY26 fell by 2.68% year-on-year. Despite this, their asset quality shows positive trends. What does this mean for investors and the bank's future?
Key Takeaways
- ICICI Bank reported a profit of **Rs 12,537.98 crore** for Q3 FY26.
- Year-on-year profit decline of **2.68%**.
- Net NPAs improved to **0.37%**.
- Gross NPAs decreased to **1.53%**.
- Sandeep Bakhshi reappointed for another two years.
Mumbai, Jan 17 (NationPress) On Saturday, ICICI Bank announced a 2.68% year-on-year (YoY) decrease in its consolidated net profit for the December quarter (Q3 FY26). The bank's profit stood at Rs 12,537.98 crore during this period, a drop from Rs 12,883.37 crore recorded in the same quarter of the previous financial year (Q3 FY25).
In comparison to the previous quarter, the bank's profit experienced a 6.13% decline from Rs 13,357.06 crore reported in the July–September quarter (Q2) of FY26, as per its filing with the stock exchange.
During this quarter, ICICI Bank's interest income saw a slight rise of 1.6% to Rs 41,966 crore, compared to Rs 41,300 crore in the corresponding period last year.
Simultaneously, interest expenses decreased by 4.3% to Rs 20,034 crore, down from Rs 20,929 crore last year, according to their filing.
The bank also indicated an improvement in asset quality during this quarter. The net non-performing assets (NPAs) reduced to 0.37% from 0.39% in the previous quarter, while gross NPAs declined to 1.53% from 1.58% sequentially.
In absolute figures, net NPAs decreased to Rs 5,732 crore from Rs 5,872 crore in the second quarter.
Gross NPAs also saw a small decrease, falling to Rs 23,758 crore from Rs 23,849.7 crore in the previous quarter.
In another development, the board of directors approved the continued tenure of Sandeep Bakhshi as Managing Director and Chief Executive Officer for an additional two years.
The board unanimously sanctioned his reappointment for another term lasting from October 4, 2026, to October 3, 2028, pending the approval of the Reserve Bank of India, shareholders, and other necessary consents.
On the stock market front, ICICI Bank shares concluded the previous trading session 0.4% lower at Rs 1,413 each.
Despite this recent downturn, the stock has appreciated approximately 15.3% over the past year.
Point of View
It is essential to remain objective in analyzing ICICI Bank's recent financial results. While the decline in profit is notable, the improvement in asset quality is a positive signal. It indicates the bank's ongoing efforts to manage risk and enhance stability, which is crucial for maintaining investor confidence.
NationPress
17/01/2026
Frequently Asked Questions
What caused ICICI Bank's profit decline?
ICICI Bank's profit decline can be attributed to various factors including competitive pressures and market conditions.
How did asset quality change for ICICI Bank?
Asset quality improved as net NPAs decreased from 0.39% to 0.37%.
What is the outlook for ICICI Bank's future?
With improving asset quality and strategic leadership, the outlook remains cautiously optimistic.
