Market Overview - Markets opened weakly on Tuesday, with the Nifty 50 at 25,580.30, down 127.65 points or 0.50% from the previous close of 25,585.50, and the Sensex at 83,207.38, down 341.95 points or 0.41% from 83,246.18 [1] - The previous session saw the Nifty end 109 points lower and the Sensex drop by 324 points, with the Reality Index losing over 2% [2] Investor Sentiment - Concerns over potential US tariffs on Europe and geopolitical uncertainties are dampening investor sentiment, leading to continued market volatility [3] - Foreign Institutional Investors (FIIs) sold Indian equities worth approximately ₹3,263 crore on January 19, while Domestic Institutional Investors (DIIs) purchased around ₹4,234 crore, indicating a net selling of ₹26,000 crore by FIIs and net purchases of ₹34,000 crore by DIIs for January so far [3] Stock Performance - Among the top gainers on the Nifty 50, Kotak Mahindra Bank rose by 0.73% to ₹430.00, Hindustan Unilever increased by 0.58% to ₹2,427.80, and NTPC gained 0.48% to ₹345.00 [4] - On the losing side, Eicher Motors fell by 2.90% to ₹273.20, Bajaj Finance declined by 2.61% to ₹944.15, and Trent dropped by 1.87% to ₹3,872.00 [5] Economic Indicators - The IMF has raised India's FY 26 GDP growth rate to 7.3%, indicating robust economic performance despite challenges [6]

Core 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]

Stock market benchmarks Sensex and Nifty ended lower on Monday, tracking deep losses in heavyweights Reliance Industries, Eternal, and ICICI Bank amid global tariff uncertainties.Photograph: Francis Mascarenhas/ReutersBesides, weakness in the rupee and unabated flight of foreign capital from Indian equities also made investors jittery, traders said.The 30-share BSE Sensex declined 324.17 points, or 0.39 per cent, to settle at 83,246.18.During the day, it tumbled 672.04 points, or 0.80 per cent, to 82,898.31 ...

Market Overview - Equity benchmark indices Sensex and Nifty declined in early trade, with Sensex down 320.69 points to 83,249.66 and Nifty down 124.60 points to 25,573.40, influenced by blue-chip stocks like Reliance Industries and ICICI Bank, along with foreign fund outflows and global tariff uncertainties [1] Company Performance - ICICI Bank's consolidated profit for the December quarter fell by 2.68% to ₹12,537.98 crore, impacted by a ₹1,283-crore provision for misclassified agricultural loans, with standalone profit also declining over 4% to ₹12,883 crore [2] - Reliance Industries reported a nearly flat net profit of ₹18,645 crore for the third quarter, as declines in gas production and retail business offset gains in other segments, leading to a drop of over 2% in its stock [3] Institutional Investment - Foreign institutional investors sold equities worth ₹4,346.13 crore, while domestic institutional investors purchased stocks worth ₹3,935.31 crore, indicating a mixed sentiment in the market [4] Global Market Influence - Asian markets showed mixed performance, with South Korea's Kospi and Shanghai's SSE Composite indices trading higher, while Japan's Nikkei 225 and Hong Kong's Hang Seng indices were lower. U.S. markets ended marginally lower, influenced by President Trump's announcement of increased tariffs on several European nations [5] Commodity Prices - Brent crude oil prices increased by 0.16% to $64.23 per barrel, reflecting ongoing fluctuations in global oil markets [6]

Market Valuation Changes - The combined market valuation of three top firms, ICICI Bank, State Bank of India, and Infosys, increased by ₹75,855.43 crore in a holiday-shortened week [1] - SBI's market valuation rose by ₹39,045.51 crore to ₹9,62,107.27 crore, making it the largest gainer [3] - Infosys saw its market capitalization surge by ₹31,014.59 crore to ₹7,01,889.59 crore [3] - ICICI Bank's valuation increased by ₹5,795.33 crore, reaching ₹10,09,470.28 crore [3] Valuation Erosion of Other Firms - Reliance Industries, HDFC Bank, TCS, Bharti Airtel, Bajaj Finance, Hindustan Unilever, and Larsen & Toubro experienced a combined valuation loss of ₹75,549.89 crore [2] - Reliance Industries' market capitalization fell by ₹23,952.48 crore to ₹19,72,493.21 crore [3] - Larsen & Toubro's valuation decreased by ₹23,501.8 crore to ₹5,30,410.23 crore [3] - HDFC Bank's valuation dropped by ₹11,615.35 crore to ₹14,32,534.91 crore [4] - Bharti Airtel's market capitalization declined by ₹6,443.38 crore to ₹11,49,544.43 crore [4] - Bajaj Finance's valuation fell by ₹6,253.59 crore to ₹5,91,447.16 crore [4] - Hindustan Unilever's market capitalization diminished by ₹3,312.93 crore to ₹5,54,421.30 crore [4] - TCS's valuation dipped by ₹470.36 crore to ₹11,60,212.12 crore [4] Ranking of Firms - Reliance Industries remains the most valued domestic firm, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and Larsen & Toubro [5]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion in Q3 of last year [3] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][6] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio grew by 7.2% year-on-year and 1.9% sequentially, with the rural portfolio growing by 4.9% year-on-year [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - Credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially due to high festive spends in the previous quarter [8] Market Data and Key Metrics Changes - Average LCR for the quarter was about 126% [4][6] - Net NPA ratio improved to 0.37% from 0.39% in the previous quarter [4] - Gross NPA additions were INR 53.56 billion, down from INR 60.85 billion in Q3 of last year [10] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy capital levels while delivering sustainable returns to shareholders [6] Management Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [6] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [7] - Management expects net interest margins to remain range-bound, with some deposit repricing expected [27] Other Important Information - The capital position remains strong with a CET1 ratio of 16.46% and total capital adequacy ratio of 17.34% [6] - Operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [26] Question: How do you view margins from here on? - Margins are expected to remain steady, with some deposit repricing anticipated [27] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are expected from this regulatory observation [33] Question: What is the outlook for credit card growth? - The decline in the credit card portfolio is attributed to high festive spending in the previous quarter, but growth is expected to improve [35] Question: How is the business banking growth outlook? - Business banking growth is strong, with a year-on-year growth of 22%, and the bank is not holding back on this segment [55] Question: What is the thought process behind the two-year extension for the CEO? - The board decided on a two-year appointment, which is almost three years until the end of the renewed term [71]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion in Q3 of last year [3] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][6] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio grew by 7.2% year-on-year and 1.9% sequentially, with the rural portfolio growing by 4.9% year-on-year [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - Corporate portfolio grew by 5.6% year-on-year and 6.5% sequentially [4] - Credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially [8] Market Data and Key Metrics Changes - Average LCR for the quarter was about 126% [3][6] - Net NPA ratio improved to 0.37% from 0.39% in the previous quarter [4] - Provisioning coverage ratio on non-performing loans was 75.4% [5] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy capital levels while delivering sustainable returns to shareholders [6] Management's Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [6] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [7] - Management expects net interest margins to remain range-bound, with some deposit repricing still possible [27] Other Important Information - The bank's operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] - Dividend income from subsidiaries was INR 6.81 billion, compared to INR 5.09 billion in Q3 of last year [15] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [26] Question: How do you view margins from here on? - Margins are expected to remain steady, with some deposit repricing and the impact of repo rate cuts [27] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are expected at this time [33] Question: What is the outlook for credit card growth? - The decline in the credit card portfolio is seen as a one-off, and growth is expected to improve moving forward [35] Question: How is the bank managing operating expenses? - The bank aims to maximize profit before provisions and does not expect costs to rise at the same pace as before [50]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2][3] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3][17] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion year-on-year [3][17] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][16] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio increased by 7.2% year-on-year and 1.9% sequentially [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - The credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially [8] Market Data and Key Metrics Changes - Average current and savings account deposits grew by 8.9% year-on-year and 1.5% sequentially [3] - The net NPA ratio improved to 0.37% from 0.39% quarter-on-quarter [4] - The capital position remained strong with a CET1 ratio of 16.46% and total capital adequacy ratio of 17.34% [5] Company Strategy and Development Direction - The strategic focus is on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable returns [5] Management's Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [5] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [6][7] Other Important Information - The bank's operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] - Non-interest income, excluding treasury, grew by 12.4% year-on-year [15] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is estimated to be between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [25] Question: How do you view your margins from here on? - Margins are expected to remain range-bound, with some deposit repricing still left to help hold up margins [26] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are being called out at this time [32] Question: What is the outlook for growth in business banking? - Business banking growth is expected to continue, with a year-on-year growth of 22% in the current quarter [53] Question: What is the current LCR? - The LCR for the quarter is reported at 126% [84] Question: How should stakeholders interpret the two-year extension for the CEO? - The board decided on a two-year appointment, which is almost three years until the end of the renewed term [70]

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Market Performance - Equity benchmark indices Sensex and Nifty declined, with Sensex dropping 244.98 points (0.29%) to 83,382.71 and Nifty falling 66.70 points (0.26%) to 25,665.60, extending previous losses due to weakness in IT, consumption, and select banking stocks [1][4] - The BSE Sensex experienced a larger intraday drop of 442.49 points (0.52%) during the trading session [4] Sector Performance - Major laggards included Tata Consultancy Services, Asian Paints, Maruti, Sun Pharma, Hindustan Unilever, ICICI Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, and Larsen & Toubro [4] - Conversely, Tata Steel, NTPC, Axis Bank, and UltraTech Cement were among the gainers [6] Investor Activity - Foreign institutional investors sold equities worth ₹1,499.81 crore, while domestic institutional investors purchased stocks worth ₹1,181.78 crore [6] Geopolitical and Economic Factors - Escalating geopolitical tensions and persistent foreign fund outflows contributed to market weakness, alongside fresh tariff-related uncertainties that unsettled investors [1][3] Global Market Context - In Asian markets, South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng indices closed higher, while Shanghai's SSE Composite index ended lower [6] - Brent crude oil prices decreased by 0.99% to $64.82 per barrel [7]