ICICI Bank reported a lower-than-expected profit for the December quarter, hit by a sharp rise in provisions following a regulatory review, even as the lender signalled leadership continuity by reappointing its chief executive.
The country’s second-largest private bank by market capitalisation posted a standalone net profit of ₹113.18 billion for the three months ended December, down from ₹117.92 billion a year earlier. Analysts had forecast a profit of ₹123.54 billion, according to estimates compiled by LSEG.
The bank said provisions more than doubled to ₹25.56 billion during the quarter after the Reserve Bank of India completed its annual supervisory review. Reuters reported that the regulator flagged certain loans classified under agriculture and priority sectors as not fully meeting regulatory criteria.
Speaking on a post-results call, executive director Sandeep Batra said loans worth ₹200–250 billion had been inaccurately classified, though they were not delinquent. He added that the bank had made the entire additional provisioning required by the regulator.
Despite the higher provisions, core operating performance remained resilient. Net interest income rose 7.7 percent year-on-year to ₹219.32 billion, supported by an 11.5 percent increase in domestic loan growth. Deposits grew 9.2 percent during the quarter.
ICICI Bank’s net interest margin, a key profitability metric, held steady at 4.3 percent, reflecting stable funding costs and yields. Asset quality improved marginally, with the gross non-performing asset ratio easing to 1.53 percent at the end of December from 1.58 percent in September.
The results came against a backdrop of robust credit demand across India’s banking sector. Major lenders reported double-digit loan growth in the December quarter, helped by festive-season consumption and tax measures aimed at stimulating demand, as the Wall Street Journal noted in recent sector commentary.
Separately, the bank’s board approved the reappointment of Sandeep Bakhshi as managing director and chief executive officer for a further two-year term beginning October 2026. Bakhshi has led the bank since 2018 and is widely credited with strengthening governance and balance sheet quality following a turbulent period earlier in the decade.
Looking ahead, analysts expect ICICI Bank to benefit from sustained credit demand and easing interest rates, though near-term profitability could remain sensitive to regulatory actions and provisioning trends. Management indicated that the impact of the supervisory review is largely behind it, positioning the bank for steadier earnings momentum in the coming quarters.