ICICI Bank Q3 Profit Misses Estimates; CEO Extension Approved

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AuthorIshaan Verma|Published at:
ICICI Bank Q3 Profit Misses Estimates; CEO Extension Approved
Overview

ICICI Bank reported a 4% year-on-year decline in net profit for the December quarter, falling short of market expectations. Net interest income also missed forecasts, though asset quality improved. The bank's board approved the reappointment of Sandeep Bakhshi as MD & CEO for another two years.

Profit Misses Street Estimates

ICICI Bank announced its third-quarter financial results on Saturday, revealing a net profit of ₹11,318 crore. This figure represents a 4% decrease from the ₹11,792 crore recorded in the same period last year and fell below the CNBC-TV18 poll consensus of ₹12,379 crore.

Net Interest Income Falls Short

The bank's net interest income, a key measure of profitability, rose 7.7% to ₹21,932.2 crore compared to ₹20,371 crore a year earlier. However, this also came in below the anticipated ₹22,092 crore expected by analysts.

Asset Quality Improves

Despite the profit miss, ICICI Bank demonstrated an improvement in its asset quality. The net non-performing assets (NPA) ratio declined to 0.37% from 0.39% in the preceding quarter. Gross NPAs also saw a slight contraction to 1.53% from 1.58% sequentially.

Leadership Continuity Approved

In a significant board decision, the reappointment of Sandeep Bakhshi as Managing Director and Chief Executive Officer was approved. Bakhshi will continue in his role for an additional two years, extending his term from October 4, 2026, to October 3, 2028. This move ensures leadership stability at the helm of the bank.

Provisions Rise Amid RBI Guidance

Provisions increased during the quarter, reportedly in line with directives from the Reserve Bank of India (RBI). While specific details were not elaborated, this move suggests the bank is adhering to regulatory guidance, which may have impacted the bottom line.

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