ICICI Bank in focus: Should you buy, sell, or hold India’s second-largest private bank’s stock after Q3 results?

ICICI Bank Q3 Results: ICICI Bank announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Saturday, January 25, 2025, reporting a rise of 15 per cent in its standalone net profit to ₹11,792.4 crore, supported by healthy loan growth and an increased core income, compared to ₹10,271.6 crore in the corresponding period last year.

Net interest income (NII)—the difference between interest earned and paid—rose nine per cent to ₹20,340.6 crore in the third quarter of the current fiscal, compared to ₹18,678.6 crore in the year-ago period. India’s second-largest private sector lender reported a stable asset quality in Q3FY25.

Follow Live Updates: ICICI Bank Q3 Results Highlights: Net profit jumps 15% YoY to ₹11,792 crore; NII up 12.5%

ICICI Bank Q3 Results

The private sector lender’s total income increased to ₹48,368 crore from ₹42,792 crore in the same period a year ago. Interest income increased to ₹41,300 crore during the quarter under review compared to ₹36,695 crore in the year-ago period. Core operating profit grew by 13.1 per cent to ₹16,516 crore compared to ₹14,601 crore in the third quarter of the previous fiscal.

On the asset quality front, the bank’s gross non-performing assets ratio improved to 1.96 per cent from 2.3 per cent a year ago. Similarly, net NPAs, or bad loans, decreased to 0.42 per cent from 0.44 per cent in the year-ago period.

However, overall provisions, excluding tax, increased to ₹1,227 crore during the quarter from ₹1,049 crore a year ago. The provision coverage ratio on non-performing loans was 78.2 per cent as of December 31, 2024. The bank typically experiences higher NPA additions from the Kisan credit card portfolio, a credit scheme for farmers, during the first and third quarters.

Capital Adequacy Ratio rose to 14.71 per cent from 14.61 per cent at the end of the third quarter of the previous financial year. ICICI Bank’s board approved the reappointment of Sandeep Batra as executive director up to December 22, 2027. The bank also cleared a proposal for the re-appointment of Rakesh Jha as the executive director for another two years to September 1, 2027.

Also Read: ICICI Bank Q3 Results 2025 Preview: From net profit, NII to loan growth, here’s what to expect

ICICI Bank Q3 Results: Should you buy, sell, or hold the stock?

According to market experts, ICICI Bank reported a healthy performance in Q3FY25, with net profit surging by nearly 15 per cent. The private bank has consistently demonstrated strong growth, achieving a 15 per cent increase in credit during this quarter, primarily driven by retail, business banking, and SME segments. 

From a margin perspective, margin compression has moderated, and the pace has slowed, as indicated by management in their Q2FY25 commentary. “However, we might see pressure on NIMs with rate cuts on the horizon. Fee income growth remains healthy,” said Abhishek Pandya, Research Analyst at StoxBox.

According to the analyst, while other players are experiencing stress in asset quality, ICICI Bank has managed to maintain its asset quality in the quarter, with NPA ratios stabilized. The private sector bank has launched DigiEase, a digital platform streamlining business banking onboarding. 

“Integrating various digital services will improve operational efficiency and customer experience and help stabilise the cost-to-income ratio. Overall, ICICI Bank delivered a healthy performance supported by strong loan growth, robust asset quality, and industry-leading return ratios,” added Pandya.

Also Read: ICICI Bank Q3 Update: India’s second-largest private bank to declare Oct-Dec quarter results on THIS date

Technical View

According to D-Street experts, ICICI Bank delivered strong Q3 results in 2025. The banking major’s share price looks positive on the technical chart pattern. The private bank stock has made a strong base at ₹1,190 levels. 

“So, one can buy ICICI Bank shares in the ₹1,210 to ₹1,215 range for the short-term target of ₹1,280 and ₹1,320. ICICI Bank shareholders can also hold the scrip, maintaining a trailing stop loss of ₹1,180 for the abovementioned targets,” said Mahesh M Ojha, AVP — Research at Hensex Securities.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.