The mixed results, announced on Saturday, January 17, is expected to shape trading sentiment when the stock returns to the market today. ICICI Bank posted a consolidated net profit of Rs 11,317.86 crore for the December quarter, compared with Rs 11,792.42 crore a year earlier, according to a regulatory filing.
Profit also fell 8.42% sequentially from Rs 12,358.89 crore in the September quarter.
Net interest income rose 7.7% year-on-year to Rs 21,932 crore, aided by steady loan growth. Net interest margin came in at 4.3%, slightly higher than 4.25% in the year-ago period and unchanged sequentially.
Asset quality remained stable. Gross non-performing assets declined to 1.53% from 1.58% in the previous quarter and 1.96% a year earlier. Net NPA stood at 1.96%, compared with 0.39% in the September quarter and 0.42% in the year-ago period. The bank said it typically witnesses higher NPA additions from the Kisan Credit Card portfolio in the first and third quarters of a fiscal year.
As of December 31, 2025, total provisions, excluding specific provisions on fund-based outstanding to borrowers classified as non-performing, stood at Rs 22,657 crore, or 1.5% of loans.
Growth steady, balance sheet strong
Loan growth remained healthy. Domestic advances rose 11.5% year-on-year to Rs 14.3 lakh crore at the end of the quarter, while total advances increased 11.5% annually and 4.1% quarter-on-quarter to Rs 14.66 lakh crore.
Average deposits grew 8.7% year-on-year to Rs 15.86 lakh crore and were up 1.8% sequentially. The average CASA ratio stood at 39% during the quarter.
Including profits for the nine months ended December 31, 2025, the bank’s total capital adequacy ratio was 17.34%, underscoring a comfortable capital position. The lender added 402 branches during the first nine months of FY26, taking its network to 7,385 branches and 11,983 ATMs and cash recycling machines.
What brokerages are saying:
Citi: BUY, Target price Rs 1,720
Citi has reiterated a BUY rating on ICICI Bank with a target price of Rs 1,720, arguing that the Q3 earnings miss was driven by transitory factors rather than any structural weakness. The brokerage said Q3 FY26 saw a miss in core pre-provision operating profit due to one-off agri priority-sector lending provisioning, treasury losses and higher operating expenses.
Citi noted that the spike in credit costs was regulatory in nature, with no deterioration in asset quality, and that core credit costs remained contained at around 36 basis points. Loan growth accelerated sequentially, led by corporate and business banking, while retail growth stayed soft. Net interest margins were broadly flat and are expected to remain range-bound. The brokerage also highlighted that the CEO’s reappointment removes a key overhang on the stock, supporting its expectation of an earnings CAGR of over 15% during FY26–28.
Motilal Oswal: BUY, Target price Rs 1,750
Motilal Oswal has maintained a BUY rating on ICICI Bank, with a revised target price of Rs 1,750, implying an upside of about 24% from current levels. The brokerage said the December-quarter earnings miss was “minor” and largely the result of one-off provisioning related to agricultural assets, even as core performance remained intact.
Motilal Oswal said ICICI Bank reported Q3 FY26 profit of Rs 113.2 billion, a 4% year-on-year decline and a 9% miss versus its estimates, driven by Rs 12.83 billion of provisions linked to agri assets. The brokerage noted that net interest income, pre-provision operating profit and adjusted profit were in line with expectations, while margins remained stable at 4.3%, consistent with management guidance.
A key positive, according to the brokerage, is the board’s approval of a fresh two-year term for managing director and CEO Sandeep Bakhshi, which “removes a key overhang on the stock.” Motilal Oswal said that despite the one-off provisioning, ICICI Bank is on track to deliver a return on assets of 2.2% in FY26, improving to about 2.3% over FY27–28. With growth momentum gaining traction, robust asset quality and best-in-class profitability, the brokerage expects the stock to recover from its recent underperformance and reiterated that ICICI Bank remains its top BUY in the sector.
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