ICICI Bank shares drop 2.2% as Q3 net profit slump 4% YoY on higher provisioning

ICICI Bank's share prices are set to open 1.4% lower on Monday morning after the private sector bank released its Q3FY26 earnings on Saturday. The bank’s net profit slumped 4% YoY to ₹11,317 crore.

ICICI Bank’s Q3FY26 net-interest income jumped to ₹21,900 crore as compared to ₹20,300 crore in the same period last year. While the non-interest income for the quarter jumped 12.4% YoY to ₹7,500 crore, as compared to ₹6,697 crore in the Q3FY25.

On the other hand, the asset quality of the bank showed sharp improvement compared to the sequential quarter and the previous quarter. The GNPA improved to 1.53% for Q3FY26 as compared to 1.58% in Q2FY26 and 1.96% in Q3FY25. Similarly, the NNPA improved to 0.37% as compared 0.39% in Q2FY26 and 0.42% in Q3FY25.

The bottomline for the quarter slumped 4% YoY to ₹11,317 crore as compared to ₹11,792 crore in the previous year’s same quarter. The slump was partially driven by higher provisioning during the quarter. The provisions and contingencies for the quarter jumped to ₹2556 crore as compared to ₹1227 crore in the same period’s last quarter.

The higher provisioning is partially led by the RBI’s supervisory action on the bank. The central bank directed the bank to make a standard asset provision of ₹1283 crore in respect of a portfolio of agricultural priority sector lending.

On the balance sheet front, the deposits as of Q3FY26 stood at ₹16.5 lakh crore as against ₹15.2 lakh crore in the same period last year, up by 9.2% YoY. The total advances as of Q3FY26 stood at ₹14.6 lakh crore, up by 11.5% YoY against ₹13.4 lakh crore.