Mumbai: An RBI-directed reclassification of the bank’s agri loan portfolio led to ICICI Bank reporting a 4% year-on-year decline in net profit to Rs 11,318 crore for the quarter ended Dec 2025. The bank’s board also reappointed Sandeep Bakhshi for a further two years starting Oct 2026, 19 months before he turns 70 – the RBI’s upper age ceiling for bank CEOs – in May 2030.Announcing the results, the bank’s executive director, Sandeep Batra, said there was a loan portfolio of Rs 25,000 crore that the bank had included in its Rs 83,000 crore agri book. The RBI, during its inspection, said the loans were not compliant with its categorisation of priority sector agri loans, which required additional provisions of Rs 1,283 crore during the quarter. Without this provision, net profit would have been higher by 4%, instead of the 4% decline reported by the bank. Batra added the loans were standard assets and the provisioning reflected a statutory requirement.As a result of the reclassification, provisions and contingencies surged 108% year on year and 180% quarter on quarter to Rs 2,556 crore. The balance sheet continued to expand at a healthy pace. Advances rose 12% year on year and 4% quarter on quarter to Rs 155 lakh crore, reflecting sustained credit demand, while deposits grew 9% year on year and 3% sequentially to Rs 17 lakh crore. The credit-deposit ratio stood at about 88%.Total income increased 2% year on year to Rs 49,334 crore. Net interest income grew a stronger 8% to Rs 21,932 crore, supported by a 4% decline in interest expended, signalling improved cost-of-funds management. Other income rose 4% year on year to Rs 7,368 crore, though it slipped 3% sequentially.Operating expenses climbed 13% year on year to Rs 11,944 crore, driven mainly by higher employee and operating costs, outpacing income growth and exerting pressure on efficiency. Asset quality improved despite the spike in provisions. The bank’s gross NPAs declined to 1.53% from 1.5% in the preceding quarter and 1.96% a year earlier, while net NPAs improved to 0.37%, indicating a resilient loan book.
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