ICICI Bank’s profit declines 4% to ₹11,318 crore: Asset quality improves, NPA declines to 1.53%; Sandeep Bakshi will remain MD-CEO for 2 more years

ICICI Bank, the country’s second largest private bank, has released the results of its third quarter (Q3 FY26) of its current financial year on Saturday (January 17). The bank’s net profit fell 4% year-on-year to Rs 11,318 crore in the October-December quarter.

In the same quarter last year, the bank had earned a profit of Rs 11,792 crore. This decline in profit is more than the market estimates, as experts had expected it to be around Rs 12,300 crore.

Interest income increased by 7.7%

Despite the decline in profits, the bank’s interest income (Net Interest Income – NII) has seen an increase. It has increased by 7.7% on annual basis to Rs 21,932.2 crore. It was Rs 20,371 crore in the same period last year. The bank’s Net Interest Margin (NIM) remains stable at 4.3%.

Sandeep Bakshi will remain CEO of the bank

Along with the results, the bank’s board has approved the proposal to re-appoint Sandeep Bakshi as Managing Director and CEO. His new tenure will start from 4th October 2026 till 3rd October 2028 i.e. for 2 years.

However, this appointment is still pending approval from the Reserve Bank of India (RBI). Bakshi has been heading the bank since 2018.

Asset quality improved, bad loans reduced

The saving grace for the bank was its asset quality. The gross non-performing assets (NPAs) of the bank have come down to 1.53%, which was 1.58% in the previous quarter (Q2 FY26).

Similarly, Net NPA has also reduced from 0.39% to 0.37%. The bank says that this strengthening in asset quality has happened due to loan recovery and better management.

Increase in provisioning affected profits.

Increase in provisioning is believed to be a major reason for the decline in profits of ICICI Bank. The bank has set aside more funds in this quarter to meet the strict rules of RBI and to keep the loan portfolio safe. Talking about operating profit, it has registered a growth of 6% on annual basis.

HDFC and Yes Bank results also came

On Saturday itself, two other giants of the banking sector also presented their results. HDFC Bank’s net profit increased by 11% to Rs 18,654 crore. At the same time, a huge jump of 55% was seen in the profit of Yes Bank and it reached Rs 952 crore. The effect of these results of the banking sector can be seen on the stock market movement on Monday.

What is provisioning and NPA?

Market experts believe that even though there has been a slight decline in net profit, ICICI Bank’s core business (NII) and asset quality remain strong. The extension of Sandeep Bakshi’s tenure is a sign of stability in the bank, which investors may like.