’s Q3 FY26 net profit slipped 4% YoY to ₹11,318 crore mainly because provisions jumped after the RBI asked the bank to create an additional standard-asset provision on a set of agricultural priority-sector loans. The bank’s core engine was healthier: NII rose 7.7% YoY to ₹21,932 crore and NIM improved to 4.30%, but the higher provisions dragged reported profit. What RBI flagged (and what it didn’t) The additional standard-asset provision was ₹1,283 crore and was linked to agri priority-sector loans where certain facilities were found non-compliant with PSL classification norms during RBI’s supervisory review. ICICI clarified (per reported coverage) there was no change in asset classification, borrower terms, or repayment behaviour; the provision is to stay until the loans are repaid or renewed in line with guidelines. Provision spike vs asset quality Total provisions (excluding tax) rose to ₹2,556 crore in Q3 FY26 versus ₹1,227 crore a year ago, with the ₹1,283 crore item being the key swing factor. Asset quality still improved sequentially: GNPA was ~1.53% (vs ~1.58% QoQ) and NNPA ~0.37% (vs ~0.39% QoQ). What to watch next * Whether this provision remains a “parking” item and reverses over time as facilities get renewed/regularised, versus becoming a recurring compliance drag. * Trend in provisions/credit costs next quarter now that the one-time hit has been taken. Source: The Hindu No Recommendation

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