Mumbai: ICICI Bank reported a 4% year-on-year decline in net profit at Rs 11,318 crore for the quarter ending December 2025 due to the RBI-directed reclassification of the bank’s agricultural loan portfolio. The bank’s board re-appointed Sandeep Bakshi for another two years from October 2026, 19 months before he turns 70 in May 2030 – the RBI’s upper age limit for bank CEOs.Announcing the results, the bank’s executive director, Sandeep Batra, said there was a loan portfolio of Rs 25,000 crore that the bank added to its Rs 83,000 crore agriculture book. The RBI, during its inspection, said the loans were not in line with the classification of priority sector agricultural loans, which required additional provisions of Rs 1,283 crore during the quarter. Without this provision, net profit would have been higher by 4%, instead of the 4% decline reported by the bank. Batra said the loans were standard assets and the provision reflected a statutory requirement.As a result of reclassification, provisions and contingencies increased by 108% year-on-year and 180% quarter-on-quarter to Rs 2,556 crore. The balance sheet continued to expand at a healthy pace. Advances grew 12% year-on-year and 4% sequentially to Rs 155 lakh crore, reflecting sustained credit demand, while deposits grew 9% year-on-year and 3% sequentially to Rs 17 lakh crore. The loan-deposit ratio stood at around 88%.Total income increased 2% year-on-year to Rs 49,334 crore. Net interest income rose 8% to Rs 21,932 crore, supported by a 4% decline in interest expense, indicating improvement in fund management. Other income grew 4% year-on-year to Rs 7,368 crore, although it declined 3% sequentially.Operating expenses increased 13% year-on-year to Rs 11,944 crore, primarily due to higher employee and operating costs, higher than earnings growth and pressure on efficiency. Asset quality improved despite the increase in provisions. The bank’s gross NPA declined to 1.53% from 1.5% last quarter and 1.96% a year ago, while net NPA improved to 0.37%, indicating a flexible loan book.