ICICI Bank(US:IBN) ZACKS·2026-01-19 18:32Core Insights - ICICI Bank Ltd. reported a profit after tax of INR113.2 billion ($1.3 billion) for Q3 FY26, reflecting a 4% decline year over year due to increased provisions, higher operating expenses, and treasury losses, despite growth in net interest income and solid loan growth [1][9] Financial Performance - Net interest income (NII) increased by 7.7% year over year to INR219.3 billion ($2.4 billion), with a net interest margin of 4.30%, up 5 basis points [2] - Non-interest income (excluding treasury) rose to INR75.3 billion ($837 million), marking a 12.4% year-over-year growth, while fee income grew by 6.3% to INR65.7 billion ($731 million) [2] - Operating expenses reached INR119.4 billion ($1.3 billion), up 13.2% year over year [3] Loan and Deposit Growth - As of December 31, 2025, total advances were INR14,661.5 billion ($163.1 billion), a sequential increase of 4.1%, driven by growth in domestic, retail, rural, business banking, and corporate loans [4] - Total deposits amounted to INR16,596.1 billion ($184.6 billion), reflecting a 3.2% increase from the previous quarter [4] Credit Quality - The net non-performing assets (NPA) ratio improved to 0.37%, down from 0.42% in the prior year, with recoveries and upgrades of NPAs totaling INR32.8 billion ($365 million) [5] - There were net additions of INR20.7 billion ($231 million) to gross NPA, with gross NPA additions at INR53.6 billion ($596 million) and write-offs of INR20.5 billion ($228 million) [5] Provisions and Capital Ratios - Provisions (excluding tax) increased to INR25.6 billion ($285 million) compared to INR12.3 billion ($136.8 million) in the prior-year quarter [6] - ICICI Bank's total capital adequacy ratio was 17.34%, with a Tier-1 capital adequacy of 16.46%, both exceeding minimum requirements set by the Reserve Bank of India [7]