ICICI Bank's Mixed Quarter: Profits Dip Amid Regulatory Provisions

ICICI Bank's consolidated profit for the December quarter declined by 2.68% to Rs 12,537.98 crore due to a Rs 1,283-crore provision for misclassified agricultural loans as priority sector advances. Meanwhile, Managing Director Sandeep Bakhshi's term was extended by two years. Non-interest income rose, and asset quality improved slightly.

ICICI Bank has reported a 2.68% decline in its consolidated profit for the December quarter, amounting to Rs 12,537.98 crore. This downturn is largely attributed to an RBI-mandated Rs 1,283-crore provision for agricultural loans that were incorrectly classified as priority sector advances.

In a noteworthy development, the bank announced a two-year extension for its Managing Director and Chief Executive, Sandeep Bakhshi, deviating from the typical three-year extensions in the banking industry. Executive Director Sandeep Batra explained that the impact on profits was due to the RBI's requirement for an asset provision related to agricultural loans.

Despite the profit dip, ICICI Bank saw its core net interest income increase by 7.7% year-on-year, reaching Rs 21,932 crore. Loan growth climbed by 11.5%, while asset quality metrics showed slight improvement, with the gross non-performing assets ratio improving to 1.53% as of December 31, 2025.

(With inputs from agencies.)