Hello and welcome to our earnings special show and a whole lot of numbers to get through. Let's start with the headlines. Big boy Reliance Industries reports a strong December quarter. Consolidated profits and revenue see an uptick led by digital O2C and digital segments. EBITDA hits a seven quarter high as well. Chairman and managing director Mukesh Ambani says the FY26 results reflect consistent financial delivery and operational resilience across businesses.
Banking major HDFC Bank reports a good set of December quarter numbers in line with what the street was expecting. Profit sees an 11% uptick while asset quality remains stable. On the other hand, ICICI Bank's net profit falls short of estimates as RBI directs the bank to make a standard asset provisioning of 1,283 crore rupees. The board also approves the reappointment of Sandeep Bakhshi as the MD and CEO for another two years.
IT major Tech Mahindra's third quarter revenues and margin beat street estimates. New deal wins for the quarter stand at over $1,000 million, seeing a 47% year-on-year growth. Wipro, meanwhile, reports a beat on margin while revenue falls short of estimates.
And market ends the week on a flat note while broader market outperforms with capital market, PSU bank, and metal stocks emerging as the biggest gainers.
Let's start with the big numbers that have just come out. ICICI Bank has reported its third quarter numbers. While the numbers are in line with expectations, what stood out of course one is the reappointment of its MD and CEO Sandeep Bakhshi for another 2-year term bringing some much needed clarity for the bank's investors. And number two, there is an unexpected standard asset provisioning that the bank has had to make because of an RBI directive that has come in. So let's go across to Gaurav for all of the updates on ICICI Bank's third quarter numbers. He's been pouring over them and joins in with the fine print.
Well, as if you look at ICICI Bank in terms of numbers, we are seeing some negative surprise from the bank for the first time if we could say. And the reason being that if you look at net interest income, that increased almost by 7.7% on a year-on-year basis. It was more or less in line with the street's expectation. In fact, if you look at the net interest margins, they are flat at 4.3% versus the street's expectation of some increase in net interest margin. So that is also something a negative read-through to say. Apart from that, if you look at other income, that grew just by 4.2% because there was a treasury loss and that is the reason why this reflected in pre-provision operating profit as well. That also grew just by 3% on a year-on-year basis, a little lower than the street's expectation. Now what came in as a negative surprise is in terms of provisions. They have actually created provisions worth 1,283 crores and this is regarding the agricultural portfolio that they have. And this provision was created because RBI asked them to create this provision and this was specifically because of the non-compliance with RBI's regulations. And that is the reason profit declines by 4% on a year-on-year basis which was 9% below the street's expectations. So in terms of numbers, this was a negative surprise to say and that is the reason why if you look at credit cost as well, that has gone up. The calculated credit cost has gone up around 75 basis points versus what it was expected to be around 50 basis points. Other than that, on the flip side, on the positive side, Mr. Sandeep Bakhshi has been reappointed for the next two years. This was actually a much awaited announcement for ICICI Bank that they have made in this quarter. But all in all, in terms of numbers, negative side is what we are seeing in terms of provisions. But on the positive side, we are seeing Mr. Bakhshi staying for the next two years in ICICI Bank.
Right. Gaurav, we'll leave it at that. Let's now cut across to the management of ICICI Bank that is addressing the media after reporting their third quarter numbers. Take a look.
Srinivasan Vaidyanathan
3:56 ↗
Deposits increased by 8.7% year-on-year to 15 lakh 86,880 crore rupees during Q3 FY26. Average current and savings account deposits increased by 8.9% year-on-year. The bank continued to see healthy growth in current account deposits and individual term and saving deposits. The total term deposits increased by 9.2% year-on-year to 16 lakh 59,611 crore rupees at December 31st, 2025. The bank opened 402 branches in 9M FY26 and had a network of 7,385 branches and 11,983 ATMs and cash recycling machines at December 31, 2025. Moving on to loan growth, the domestic loan portfolio grew by 11.5% year-on-year at December 31st, 2025. The retail loan portfolio grew by 7.2% year-on-year. Including non-fund outstanding, the retail loan portfolio was 42.2% of the total portfolio. The mortgage portfolio grew by 11.1% year-on-year. The business banking portfolio grew by 22.8% year-on-year. Growth in domestic corporate portfolio was 5.6% year-on-year at December 31st, 2025. About 71% of the corporate loan portfolio was rated A minus and above at December 31, 2025. Moving on to asset quality, net NPA ratio was 0.37% at December 31st, 2025 compared to 0.39% at September 30th, 2025. During Q3 FY26, there were net additions in gross NPA of 274 crore rupees. Gross NPA additions were 5,356 crore rupees in Q3 FY26. Recoveries and upgrades of NPA excluding write-offs and sale were 3,282 crore rupees in Q3 FY26. Gross NPAs written off were 246 crore rupees in Q3 FY26. There was a sale of NPA of 120 crore rupees for cash in the current quarter. The provision ratio on non-performing loans was 75.4% at December 31st, 2025. Total fund-based outstanding to all borrowers under resolution as per various RBI regulations was 1,660 crore rupees or about 0.1% of the advances at December 31st, 2025. Loans and non-fund-based outstanding to performing corporate borrowers rated double B and below were 3,392 crore rupees at December 31st, 2025 or about 0.2% of advances at December 31st, 2025. The total provisions during Q3 FY26 were 2,556 crore rupees or about 14.6% of core operating profit and about 0.1% of average advances. Including the additional standard asset provision, the total provisions were 1,273 crore rupees or 7.3% of core operating profit and 0.036% of average advances. The bank continues to hold contingency provision of 13,100 crore rupees at December 31st, 2025. Customers are at the heart of what we do and providing them a safe environment is paramount. I would like to share some of the recent initiatives on our customer-centric system. Coming to banking with care for senior citizens, to empower senior citizen customers with knowledge and confidence in their daily banking needs, we continue to engage with them through SMS, email, social media, videos, and on-ground awareness sessions. In Q3 alone, we conducted over 250 awareness programs in housing societies nationwide, helping them recognize prevalent frauds and safeguards for their accounts. We also provide them convenience of digital banking services including organized submission of Form 15H certificates and digital interest certificates. Secured banking for customers. The bank has introduced smart lock on iMobile, a unique safety feature which empowers customers to lock or unlock access to internet banking, UPI, credit card, and debit card facilities with a single click. This puts convenience and controls directly in the hands of while ensuring stronger protection. In addition, the bank has launched a new domain www.icicibank.in in line with regulatory guidelines. The domain enhances authenticity, safeguards customers from fake websites, and delivers a seamless digital banking experience with added layers of security. To further protect customers from frauds, the bank has begun using 1600 series phone numbers for outbound calls. This initiative helps customers to easily identify genuine communication from the bank and avoid responding to fraudulent calls, thereby reducing the risk of scams. Digital lending enhancements. The existing loan against securities customers can now increase overdraft limits entirely online and pledge shares seamlessly through the bank digital channel. This significantly reduces turnaround time and enhances customer-friendly lending experience. Through these continuous innovations in service quality, digital security, and awareness, we strive to safeguard our customers, promote awareness, and design thoughtful solutions that meet their needs. Going forward, we will continue to operate within our strategic framework while focusing on micro markets and ecosystems. The principles of fair to customer, fair to one bank, one team, and return of capital will guide our operation. We focus on building a culture where every employee in the bank serves customers with humility and upholds the values of brand ICICI. We aim to be the trusted financial service provider of choice for our customers and deliver sustainable returns to our shareholders. With this, I conclude my opening remarks. I'll be happy to take your questions. Thank you.
Thank you very much, sir. We will now begin the Q&A session with Mr. Bakhshi and Mr. Banerjee. Anyone who wishes to ask a question may press star and one on the telephone. If you wish to remove yourself from the question queue, you may press star and two. Today's announcement is on the bank's financial performance. Hence, we would like to request you to ask questions related to that. Please write to the corporate communications team separately for any other queries. Due to time constraints, I request all of you to ask two questions at a time. If you have additional queries, you may join the queue again if time permits. Thank you. We'll take our first question from Ritu Singh from CNBC TV18. Please go ahead.
Hi, thank you very much for taking our question. Mr. Bakhshi, first, that additional provision that you've had to make, RBI directing the bank to make this 1,283 crore provision for the agriculture portfolio where some of the facilities were found to be non-compliant with the PSL classification norms. Could you first just simply explain what the bank was doing and what RBI required them to do differently? What prompted this kind of a change? And secondly, are you relooking at this portfolio? Is it a one-time thing or do you think there could be additional provisions you would have had to make as you go through this? Secondly, if you could also explain to us Mr. Bakhshi getting a 2-year extension. It was long awaited by the street. But why specifically only the 2-year term? Typically we've seen the bank go with three-year terms. So that's one question. And if you could clarify your slippages, there's the seasonality factor and agriculture slippages that the bank typically sees in the third quarter. What else has led to the contribution to this 5,356 crore gross slippage number where it's come from and any pockets of stress you may want to call out specifically with MSME for instance, with any US tariff threat or with the unsecured book what are the trends you're seeing? Thank you.
There are four questions so let me still try to take all of them. First of all, on RBI, as you are aware, does an annual inspection as part of the cycle. I mean, we have been doing this portfolio since 2012 and RBI has made an assessment that the terms of the facilities were not fully in compliance with the regulatory requirement for PSL. All right. I also want to categorically state there is no change of asset classification or in terms and conditions applicable to the borrowers or in repayment behavior of the borrower as per these terms. So we are very comfortable for the quality of the book that we have done. We will work towards repayment and renewal of these loans to make them in conformity with the PSL guidelines and our endeavor would be to minimize the PSL and provisioning impact. Okay. Coming on to Mr. Bakhshi's reappointment, I think there was a discussion with the board along with the MD and it was felt appropriate that a 2-year term is what is desired. But just wanted to clarify it is nearly 3 years from today. It is starting from October of '26 and goes on till October '28 so it's nearly 3 years. The other was around slippages. Yeah, the gross slippages are actually fine. Sorry, there was something around business banking. I think our business banking portfolio continues to do well and we have grown that portfolio by about 22% during the quarter. In terms of slippages, I think if you see the numbers, they have actually gone down compared to Q3 of FY25. The gross additions in the current quarter was 5,356 crore rupees against 6,850 crore rupees. In fact, the recoveries are largely at a similar level. It was 3,392 crore rupees in Q3 of FY25. Now they are 3,282 crore rupees. So the net additions in this quarter is about 274 crore rupees as against 2,693 crore rupees. If you're comparing with Q2 of FY26, that's the seasonal impact of rural slippages. Beyond that, I think we are very happy with the numbers over here.
But Mr. Bakhshi, the question was more also whether you have evaluated your MSME book, what kind of exposure they have to the US there because of the tariff issue if there could be any stress and unsecured what you're seeing and also to what you responded on the agriculture PSL provisions. Just to clarify again, this is a one-time activity. You do not expect any further provisions that the bank will have had to make on this portfolio.
On this portfolio, this was an exercise done for the period ended March 2025. RBI does annual exercises. For this period, we have made an assessment and I've already made my comments relating to that. On business banking, the portfolio continues to do well. We are very happy with the quality of the book that we have done and we have grown that book. You know, we continue to assess our portfolio. As you are aware, India is largely a domestically focused economy and we made an assessment of the impact of US tariffs and of course when we are assessing our customers we prioritize resilience through strong balance sheet from a customer perspective and we continue to leverage these. We continue to believe that the quality of book that we have built is very comfortable. I think the impact of US tariffs is very...
Yeah. No, please go ahead and if you could also add because of ECL as well, have you made an assessment of the additional provision you will have to make.
ECL is still an internal assessment. Whenever the regulations come into place, we will be compliant with that.
Okay. Sure. No number to share yet.
Thank you. We take our next question from Vishwanath Nair from NDTV Profit. Please go ahead.
Hi Mr. Bakhshi. Just following up on what was pointed out about the provision factor as well. Is your 4% dip on the net profit largely because of this one-time hit and again is there an expected hit that is going to follow in the fourth quarter? That's question number one. Question number two, I want to take that question about the CEO forward. See, the reason we are asking that is because 3 years is what one is usually used to whenever the board recommends a term for a CEO's extension. So 2 years seems like we're preparing the system for a potential change. So is that something that we should watch out for at all? Thank you.
So the board in its wisdom in discussion with the managing director decided the two years and I just wanted to clarify again his term starts, it's an extension from October of 2026. So it is nearly 3 years at this point of time. Right? So we have informed the market well in advance. And secondly in terms of, I thought I'll just clarify in case the specific provision was not there instead of a minus 4% we would have had a plus 4.1% on PAT.
I understood that. Okay. Yes. The quick question also is on the net interest margin front. Now NIM has more or less stabilized around the 4.2-4.3 level. But the impact of the December rate cut is likely to flow in again during the current quarter. Do you expect any moderation going ahead?
Now looking ahead, we do expect NIMs to remain more or less range-bound reflecting the repricing of the external benchmarks on loans and investments as you rightly pointed out and of course competition intensity. This would get in part offset by retail term repricing and we will continue to watch the market conditions and if there are any further changes in monetary policy that will impact the NIM trajectory. From our perspective, we are focused on maximizing all levers of profits and where NIM is certainly one of the important levers.
Sorry, just to close us off, 11.5% is still close to the system on the advances growth. Is this the level that we're expecting for this financial year or because that growth has been a question for HDFC Bank?
No, I think we, so you have to look at the overall franchise the way it has been growing. We do believe that our recent policy is supportive. Sorry, I mean our recent, we do believe that we will continue to evaluate customers. We do not give any specific targets of what we are going to be growing. Our focus is to maximize PBT in a risk-calibrated fashion and that is what we will continue to be doing.
Thank you. Next question is from Chehann Goel from Mint. Please go ahead.
Hi. Hi, Mr. Bakhshi. Two questions. One is what is the size of this portfolio that RBI has said is not fully compliant and was it some sort of a misclassification? Because you said it's been there since 2012. Did RBI find that the classification that you have made is not what it would like it to be? The first one. Second is on the 2-year term. I know you have answered but is it because Mr. Bakhshi doesn't want a full term? Because I mean under regulation he still has up to 70. So why the 2-year term is what we were wondering. I mean you, I know you said 3 years but then...
I will repeat what I said. The board in its wisdom decided in consultation with the managing director decided to give a 2-year term. Right. Moving to the point about the size of the portfolio, the standard asset provisions, the total portfolio required to be reviewed from an agriculture priority sector lending was in the region of about 20,000-25,000 crores and the bank has been originating this portfolio as I said since 2012 and we will work towards bringing this in conformity with the regulatory expectations. These, I repeat, these loans are standard and secured in nature and the standard asset provisions will continue until the assets are repaid or renewed in conformity with the PSL guidelines. So I mean there is from a customer angle we are very happy. As you are aware the provisioning requirement for a PSL agri portfolio is slightly different from normal. It is about classification thereof. It does not in any way reflect the quality of the borrower.
All right. And because you have been on this portfolio for 13-14 years, has it ever been pointed out earlier or because something changed in FY25 is what I'm trying to understand.
Well, Chehann, I think this is an annual exercise which RBI does and the discussions with them are confidential. As I said, we have been, I mean this portfolio we have been having it for a very long period of time and we are happy with the quality of the book.
Thank you. Next question is from the line of Priyamita Datta from The Informist. Please go ahead.
Yeah. Hi, thank you for the opportunity. My question is with regards to the treasury loss of 157 crore that we saw in the December quarter. I just wanted to know what can we expect from the treasury income head in Q4 and if you can give your view on how you see it progressing in FY26-FY27 given the rate view in mind. And secondly, I just wanted to understand one thing, I may have missed it when it was mentioned before, that for how long do you have to hold this additional provision? Thank you.
You know, first on the treasury, I think the treasury loss of about 157 crores against a gain of about 220 crores in Q2 of current year. This is primarily reflecting mark-to-market movements. Going forward we will see and I think you'll also have to see these numbers in the context of the NIM that we earn. So we normally don't choose to book gains and we look at economic returns over a longer period of time rather than booking gains from an accounting point of view. The second question was again on, I mean as this is a standard asset provision and as I said earlier we will continue to work towards repayment and renewal of these loans in conformity with the PSL classification guidelines and our endeavor would be to minimize the PSL and provisioning impact.
