Allahabad Bank net loss widens to Rs 3,834 crore in Q4

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Kolkata | Published: May 11, 2019 1:46:32 AM

Allahabad Bank on Friday reported widening of its net loss to Rs 3,834.07 crore for the quarter ended March 31, 2019 against a net loss of Rs 3,509.63 crore for the same period a year ago, due to a rise in provisions to cover bad loans.

Allahabad Bank’s MD and CEO SS Mallikarjuna Rao said the lender was hopeful of registering a net profit in the first quarter of the current fiscal.

Allahabad Bank on Friday reported widening of its net loss to Rs 3,834.07 crore for the quarter ended March 31, 2019 against a net loss of Rs 3,509.63 crore for the same period a year ago, due to a rise in provisions to cover bad loans.

The Kolkata-headquartered lender, which came out of the prompt corrective action (PCA) framework of the Reserve Bank of India in February, had reported a net loss of Rs 732.81 crore for the third quarter of the last fiscal.

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The bank’s operating profit during the March quarter last fiscal witnessed over five-fold year-on-year jump to Rs 634.26 crore from Rs 122.90 crore in the corresponding quarter of the previous fiscal as total income rose more than 8% y-o-y at Rs 4,602.86 crore compared with Rs 4,259.37 crore in the year-ago period. Its net interest income (NII) also grew 41.61% y-o-y at Rs 1,257.98 crore for the period under review, according to a stock exchange filing by the bank. Net interest margin (NIM) as on March 31, 2019 stood at 2.58%.

During the January-March period this year, gross non-performing assets (NPAs) in absolute terms rose 1.72% quarter-on-quarter to Rs 2,8704.78 crore from Rs 2,8218.79 crore in the October-December period last year, according to the stock exchange filing.

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Gross NPA as a percentage of total loans fell 26 basis points (bps) to 17.55% from 17.81% during the previous quarter. During the period under review, net NPA ratio also decreased 248 bps sequentially at 5.22%.

Provisions and contingencies rose 10.56% y-o-y to Rs 5,283.70 crore for the March quarter of FY19 from Rs 4,783.42 crore in the corresponding period of FY18.

Talking to the media, Allahabad Bank’s MD and CEO SS Mallikarjuna Rao said the lender was hopeful of registering a net profit in the first quarter of the current fiscal. “We are planning to raise close to Rs 1,200 crore through Qualified Institutional Placement (QIP) this fiscal,” Rao said.

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