Allahabad Bank Q3 Net Loss Increases to Rs 733 Crore
In terms of value, the gross NPAs or bad loans experienced an increase with a value of Rs 28,218.79 crore, which is higher than Rs 23,260.81 crore in comparision to the passed year.
State-owned Allahabad Bank Wednesday reported a narrow net loss of Rs 732.81 crore for the third quarter which ended on December of the Current financial year due to a severe decline in bad loan provisions.
The bank experienced a net loss of Rs 1,263.79 crore in the same period of the previous fiscal policies. Total income was nearly Rs 4,756.88 crore for December Quarter of 2018-19. As against Rs 4,755.33 crore within the same time slot that was of 2017-18, Allahabad Bank said in a regulatory filing.
From the asset point of view, the bank witnessed a rise in its gross non-performing assets (NPAs) at 17.81 percent of the total gross advances as at the end of December 2018, as against 14.38 percent by the December 2017 end.
In terms of value, gross NPAs or bad Loans have increased by Rs 28,218.79 crore, more than Rs 23,260.81 crore a year ago. The net NPAs were decreased to 7.70 percent (Rs 10,865 crore) from 8.97 percent (Rs 13,646.52 crore).
The provisions for bad loans have now been reduced to Rs 1,900 crore for the desired quarter, as against Rs 2,044.23 crore that was a year ago. The overall provisions and contingencies were at Rs 1,495.34 crore, down from Rs 2,413.46 crore. For accounts under provisions of Insolvency and Bankruptcy Code (IBC), the bank is planning to hold provisions of Rs 4,887.17 crore 75 percent of total outstanding as on December 31, 2018, it said.
The non-performing loan provision coverage ratio of the bank was at 69.64 percent by end of December 2018.
Stock of Allahabad Bank closed at Rs 42.35 on BSE, down 0.94 percent from the previous close.
Talking to reporters in Kolkata on Wednesday, MD and CEO of Allahabad Bank S S Mallikarjuna Rao said the bank would strive to get out of the Prompt Corrective Action (PCA) threshold by June 2019.
An appeal would also be made to the government for infusion of capital into the bank, said Rao.
He said the bank was also looking into plans that would wind up its Hong Kong operations and transfer the NPAs on the Indian entity's books.Net Interest Margin (NIM) of the bank is close to 2.66 percent.