ICICI Bank Ltd., the second largest private sector bank, for the third quarter ended 31 December 2025 reported 4% drop in net profit to ₹11,318 crore as compared to ₹ 11,792 crore in the year ago period on account of making additional standard asset provision of ₹1,283 crore during the quarter as per direction of the Reserve Bank of India (RBI).
“Following its annual supervisory review, RBI has directed the bank to make a standard asset provision of ₹1,283 crore in respect of a portfolio of agricultural priority sector credit facilities wherein the terms of the facilities were found to be not fully compliant with the regulatory requirements for classification as agricultural priority sector lending (PSL),” Sandeep Batra, Executive Director, ICICI Bank said on a conference call.
“There is no change in asset classification or in the terms and conditions applicable to the borrowers or in the repayment behaviour of borrowers as per these terms. This additional standard asset provision will continue until the loans are repaid or renewed in conformity with the PSL classification guidelines,” he added.
This mis-classification discovered by the RBI is in an agri-loan book of a size of ₹20,000 to ₹25,000 crore, according to Mr Batra. This book dates back to 2012, he added.
“It was found during the RBI’s annual inspection. There is no change is asset quality. We are happy with the quality of the book,” he emphasised.
The bank said it’s Board had unanimously approved the re-appointment of MD & CEO Sandeep Bakhshi for a further period of two years with effect from October 4, 2026 to October 3, 2028, subject to approval of Reserve Bank of India and shareholders.
During the quarter the bank’s Net interest income (NII) increased by 7.7% year-on-year (YoY) to ₹ 21,932 crore. Net interest margin was 4.30% compared to 4.25% a year ago.
Provisions (excluding provision for tax) were ₹2,556 crore compared to ₹1,227 crore in the year ago period.
The bank’s net domestic advances grew by 11.5% YoY. The retail loan portfolio grew by 7.2% YoY and comprised 51.2% of the total loan portfolio at December 31, 2025.
The business banking portfolio grew by 22.8% YoY. The rural portfolio grew by 4.9% YoY.
The domestic corporate portfolio grew by 5.6% YoY. Total advances increased by 11.5% YoY to ₹ 14,66,154 crore at December 31, 2025.
The bank’s average deposits increased by 8.7% YoY to ₹ 15,86,088 crore.
Total period-end deposits increased by 9.2% YoY to ₹ 16,59,611 crore at December 31, 2025.
The gross NPA ratio was 1.53% at December 31, 2025 compared to 1.96% at December 31, 2024. The net NPA ratio was 0.37% at December 31, 2025 compared to 0.42% a year ago.
The gross NPA additions were ₹5,356 crore during the quarter as compared to ₹6,085 crore a year ago.
“The bank typically witnesses higher NPA additions from the kisan credit card portfolio in the first and third quarter of a fiscal year,” the bank said.
Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹ 3,282 crore compared to ₹ 3,392 crore a year ago.
The net additions to gross NPAs, excluding write-offs and sale, were ₹ 2,074 crore during the quarter compared to ₹ 2,693 crore a year ago.
The bank has written-off gross NPAs amounting to ₹ 2,046 crore in the quarter.
The provisioning coverage ratio on non-performing loans was 75.4% at December 31,
2025. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines were ₹ 1,666 crore or about 0.1% of total advances at December 31, 2025.
At December 31, 2025, the Bank holds total provisions, other than specific provisions on fund-based outstanding to borrowers classified as non-performing, amounting to ₹ 22,657 crore or 1.5% of loans.
These provisions include the contingency provisions of ₹ 13,100 crore as well as general provision on standard assets, provisions held for non-fund based outstanding to borrowers classified as non-performing, loan and non-fund based outstanding to standard borrowers under resolution and the BB and below portfolio.
These provisions do not include additional standard asset provision as directed by RBI in respect of a portfolio of agricultural priority sector credit facilities, the bank said.
The consolidated profit after tax was ₹ 12,538 crore for the quarter as compared to ₹ 12,883 crore a year ago, down 2.67%.
