Allahabad Bank on Wednesday reported a net loss of Rs 1,263.79 crore for the quarter ended December due to a massive increase in provisions to cover rising bad loans.
Allahabad Bank on Wednesday reported a net loss of Rs 1,263.79 crore for the quarter ended December due to a massive increase in provisions to cover rising bad loans. The Kolkata-headquartered public sector bank had posted a net profit of Rs 75.26 crore during the corresponding quarter a year ago.
During the December quarter this fiscal, the bank’s provisions for non-performing assets rose over 150% year-on-year to Rs 2,044.23 crore against Rs 795.82 crore for the same period last fiscal, according to a stock exchange filing.
Asset quality of the lender worsened further in the December quarter. Gross NPAs in absolute term rose 21.84% y-o-y at `23,260.81 crore during the period under review. And, on quarter-on-quarter basis, gross NPAs were up 8.4% from Rs 21,454.27 crore in the September quarter this fiscal.
Gross NPAs as a percentage of total loans rose to 14.38% in the December quarter this fiscal from 12.51% during the same period last fiscal. In September quarter this fiscal gross NPA ratio was at 14.10%. The lender informed that it has provided Rs 575.91 crore up to December 31, 2017, in respect of nine accounts covered under provisions of the Insolvency and Bankruptcy Code. During the September-December period last year, the bank’s operating profit saw a 6.81% y-o-y rise at Rs 922.17 crore compared with `863.34 crore in the same period previous year on the back of close to 11% fall in operating expenses due to a fall in employee cost.
During the period, the bank’s net interest income (NII) rose 13.82% y-o-y to `1,346.91 crore. In the December quarter, net NPA ratio rose to 8.97% from 8.65% in the same period last fiscal.