Whalesbook
ICICI Bank reported a 4% year-on-year decline in net profit to ₹11,318 crore for the quarter ended December 2025. The dip was primarily attributed to a significant provisioning requirement following the Reserve Bank of India's reclassification of a portion of the bank's agricultural loan portfolio.
Regulatory Hit Squeezes Profit
Additional provisions of ₹1,283 crore were made due to loans not meeting the central bank's criteria for priority sector agricultural advances. Without this regulatory adjustment, the bank's net profit would have seen a 4% increase instead of a decline. Provisions and contingencies saw a sharp surge of 108% year-on-year and 180% quarter-on-quarter, reaching ₹2,556 crore.
CEO Bakhshi Secures Extension
In parallel, the bank's board approved a two-year extension for its chief executive officer, Sandeep Bakhshi. His reappointment begins in October 2026, extending his tenure beyond the RBI's stipulated age limit of 70 for bank CEOs in May 2030.
Balance Sheet Growth Continues
Despite the provisioning impact on profitability, ICICI Bank's balance sheet expanded robustly. Advances grew 12% year-on-year to ₹155 lakh crore, while deposits rose 9% to ₹17 lakh crore, indicating sustained credit demand. The credit-deposit ratio stood at approximately 88%. Total income increased 2% to ₹49,334 crore, with net interest income showing stronger growth at 8%, supported by improved cost-of-funds management.
Asset Quality Holds Firm
Operating expenses climbed 13% year-on-year to ₹11,944 crore, largely due to higher employee and operational costs, which outpaced income growth and pressured efficiency ratios. However, asset quality demonstrated improvement. Gross non-performing assets (NPAs) declined to 1.53% from 1.5% in the previous quarter, and net NPAs improved to 0.37%.