The second-largest private sector lender ICICI Bank is likely to post stable growth in its core business in Q3FY26, but markets will be watching whether its current managing director, CEO Sandeep Bakhshi, will continue as the bank’s boss when his tenure ends in October 2026, analysts say. The bank will present its third quarter FY26 results on Saturday.
Bakhshi has been the head of ICICI Bank since October 15, 2018. For reappointment of an MD, CEO or Whole Time Director (WTD) in private sector banks, the lender has to submit the complete application to the Reserve Bank of India (RBI) at least six months before the tenure of the incumbent expires. Banking industry experts say private banks often submit CEO reappointment applications well before the six-month deadline.
“ICICI Bank is likely to post another stable quarter, with steady growth in loans and deposits. We expect net interest margin (NIM) to broadly maintain or improve, benefiting largely from the impact of CRR (cash reserve ratio) cut. That said, we monitor commentary on future trends,” Elara Securities said in a report. “Deviations are likely to increase marginally sequentially, driven by diversions in agriculture. Feedback on weaker aspects (continuation of management) will be the key variable going forward,” he added.
ICICI Bank had reported a modest year-on-year (y-o-y) growth of 5 per cent in Q2FY26 with a standalone net profit of Rs 12,359 crore amid declining provisions, including for non-performing assets (NPAs) and further improvement in asset quality.
According to brokerage Axis Securities, ICICI Bank’s business growth is expected to remain weak and the credit-deposit (CD) ratio could remain stable. Its NIM, according to Axis Securities, is expected to move with a slight positive bias. Feedback from the bank’s management on overall growth, especially in the unsecured book, will be key monitors, the brokerage said.
Meanwhile, BNP Paribas Research says ICICI Bank’s balance sheet remains protected by strong excess provisions and healthy capitalization. It also currently enjoys a higher proportion of low-cost deposits and therefore a funding cost advantage over its closest competitors. This has helped the bank gain loan market share across core categories.
“ICICI Bank’s annualized ROE has surpassed the 18% barrier in recent quarters, partly helped by low credit costs. It is trading at 2.3 times 1-year core P/BV and remains attractive against what we see as a sustainable core ROE of 17-18%,” BNP Paribas said. ENDS
Posted on January 16, 2026
