Written by Hitesh VyasMumbai | January 18, 2026 04:27 AM IST 2 min readThe bank’s operating expenses increased by 13.2 per cent to Rs 11,944 crore from Rs 10,552 crore in Q3 FY25. This includes Rs 145 crore of provisions on an estimated basis on account of the new Labour Codes.Private sector lender ICICI Bank on Saturday reported a 4 per cent decline in the profit after tax (PAT) at Rs 11,318 crore in the quarter ended December 2025, impacted by higher provisions.In the year-ago quarter, its net profit stood at Rs 11,792 crore.The bank said that the Reserve Bank of India (RBI) directed it to make a standard asset provision of Rs 1,283 crore in respect of a portfolio of agricultural priority sector credit facilities. But the terms of the facilities were found not fully compliant with the regulatory requirements for classification as agricultural priority sector lending. This additional standard asset provision will continue until the loans are repaid or renewed in conformity with the priority sector classification guidelines, it said.“In case the specific provision was not there, instead of a (-) 4 per cent (dip in net profit), we would have a (+) 4.1 per cent (growth) in PAT,” Sandeep Batra, Executive Director, ICICI Bank, told reporters.Its net interest income rose 7.7 per cent to Rs 21,932 crore in October-December 2025 quarter from Rs 20,371 crore in the year-ago period. Net interest margin was 4.3 per cent compared to 4.25 per cent in the same quarter of the previous fiscal.The bank’s operating expenses increased by 13.2 per cent to Rs 11,944 crore from Rs 10,552 crore in Q3 FY25. This includes Rs 145 crore of provisions on an estimated basis on account of the new Labour Codes.Deposits rose by 9.2 per cent year-on-year (y-o-y) to Rs 16,59,611 crore. The net domestic advances grew by 11.5 per cent y-o-y. The retail loan portfolio rose 7.2 per cent y-o-y and 1.9 per cent sequentially, and comprised 51.2 per cent of the total loan portfolio at December 31, 2025. The business banking portfolio grew by 22.8 per cent.Story continues below this adThe gross non-performing asset (GNPA) ratio stood at 1.53 per cent compared to 1.96 per cent at December 31, 2024. The net NPA ratio stood at 0.37 per cent as against 0.42 per cent. During the quarter, gross NPA additions were Rs 5,356 crore. Recoveries and upgrades of NPAs, excluding write-offs and sale, stood at Rs 3,282 crore. © The Indian Express Pvt Ltd