Leadership continuity positive for ICICI Bank

High provisions in the third quarter of 2025-26 (Q3FY26) results led to a selloff in ICICI Bank stock.

- DEVANGSHU DATTA

However, analysts tracking the stock continue to maintain a positive stance. The leadership question was also resolved with approval for the extension of Managing Director & Chief Executive Officer (MD&CEO) Sandeep Bakshi’s term until October 2028, ensuring continuity.Reported net profit was ₹11,320 crore in Q3, a decline of 4 per cent year-on-year (Yo-Y), dragged down by additional standard asset provisioning of ₹1,283 crore on the agricultural priority sector lending (PSL) portfolio of around ₹20,000 crore- ₹25,000 crore as estimated by the management.

This provision will be reversed as and when the non-compliant portfolio conforms to the Reserve Bank of India (RBI) norms. No extra PSL certificate cost was incurred and there is no change in asset classification. The additional provision does not reflect deterioration. Management is confident of resolving the PSL compliance.