ICICI Bank’s core operating profit rose 6% year‑on‑year to INR 175.13 billion, a 2.5% quarter‑on‑quarter gain, driven by strong loan growth and efficient cost management across its business‑banking and retail segments.
Total provisions for the quarter climbed to INR 25.56 billion, including an INR 12.83 billion standard asset provision required by the Reserve Bank of India after a supervisory review of agricultural priority‑sector credit. Provisions excluding tax jumped 108% year‑on‑year, reflecting heightened risk coverage.
Net interest income increased 7.7% year‑on‑year to INR 21.93 billion, while the net interest margin held steady at 4.30%. The margin stability was supported by 8.9% year‑on‑year growth in CASA deposits, which helped offset the impact of repo‑rate cuts.
Profit after tax fell 4% year‑on‑year to INR 11,318 crore, missing analyst estimates of 11,946‑12,641 crore. The decline was largely due to the RBI‑mandated provision and a treasury loss of INR 157 crore, which offset gains in other areas.
Business‑banking loans grew 24.8% year‑on‑year in Q2 and continued strong momentum in Q3, contributing significantly to core profit. Retail and SME segments also expanded, though the bank noted seasonal pressure in agricultural loans.
Management highlighted a strong capital position, with a CET‑1 ratio of 16.46% and contingency provisions of INR 131 billion. CEO Sandeep Bakhshi emphasized a customer‑centric strategy and confidence that loan growth will sustain momentum into Q4.
Investors viewed the results as a mix of strength and headwinds, noting the solid core profit growth but also the PAT miss and higher provisioning, indicating a cautious but stable outlook.
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