ICICI Bank said the Reserve Bank of India (RBI) has directed it to make a standard asset provision of ₹1,283 crore for a portfolio of Priority Agriculture Sector Credit Facilities, where the terms of the facilities were found not to be fully compliant with the regulatory requirements for classification as a Priority Agriculture Sector Loan (PSL).
This standard asset top-up provision will continue until the loans are repaid or renewed in accordance with the PSL classification guidelines.
The bank’s profitability was impacted by this increase in provisions. Net profit for the period fell 4% to ₹11,318 crore from last year’s ₹11,792 crore and also missed the CNBC-TV18 poll by ₹12,379 crore.
Its net interest income rose 7.7 per cent to ₹21,932.2 crore, compared to ₹20,371 crore in the year-ago period. However, it was lower than Street’s expectations of ₹22,092 crore.
However, ICICI Bank’s asset quality improved as its net non-performing assets (NPAs) declined to 0.37% from 0.39% in the previous quarter, while its gross NPA contracted to 1.53% from 1.58% sequentially.
In absolute terms, net NPA was ₹5,732 crore compared to ₹5,872 crore in the second quarter. Meanwhile, its gross NPA was ₹23,758 crore compared to ₹23,849.7 crore sequentially.
Gross slippages in the third quarter were ₹5,356 crore as against ₹5,034 crore.
During the third quarter, there were 2,074 crore net NPA additions, ICICI Bank’s Sandeep Batra said in a post-earnings conference call.
Batra told CNBC-TV18 that the conditions of the facility were not fully compliant with PSL requirements.
He said the bank was satisfied with the quality of the book. Reimbursement and renewal will be done as per PSL guidelines, it added.
Batra said the bank continues to evaluate its portfolio. He has assessed the impact of US tariffs and continues to believe the quality of the book is comfortable.
He added that expected credit losses (ECL) remain an internal assessment and the bank will comply with regulations as they come.
In another development, the Board of Directors of ICICI Bank also approved the reappointment of Sandeep Bakhshi as Managing Director and CEO of the bank for two more years, with effect from October 4, 2026 to October 3, 2028.
“The CEO extension is very positive news, in my opinion. And it was a hangover that was lingering for eight or nine months on the stock. And I definitely agree that a two-year extension is a reasonable period during which the bank will be able to find the next leader who can move things forward in Mr. Bakshi’s place,” said Asutosh Mishra, head of institutional equity research.
Gurmeet Chadha, Managing Partner and CIO of Complete Circle, said: “I think if you take that one out, when it came to the Kisan card, the numbers were largely in line. Retail sales volume grew in single digits, and wholesale sales volume in double digits is also the case with HDFC.
Shares of ICICI Bank ended the previous session down 0.4 per cent at ₹1,413 apiece. The stock has gained 15.3% over the past year.
Also Read: HDFC Bank Q3 Results | Net profit beats estimates, NII up 6% to ₹32,615 crore
