Public sector lender Allahabad Bank on Friday reported a Rs 581.13-crore net loss for the quarter ended March 31, 2016, compared with a net profit of Rs 202.63 crore during the year-ago period, as the bank’s provision towards bad assets rose sharply.
During the March quarter, non-performing assets (NPAs) in absolute term surged by over 80% Y-o-Y to Rs 15,384.57 crore from Rs 8,357.97 crore in same period a year ago, the bank said in a BSE filing.
The lender’s operating profit decreased to Rs 873.25 crore from Rs 1,008.79 crore as its net interest income (NII) saw more than 12% Y-o-Y decline at Rs 1,273.70 crore during the period under review. Due to the sharp increase in NPAs, provisioning grew by a whopping 294% to Rs 2,487.15 crore, against Rs 631.11 crore for the corresponding period of FY15.
Gross NPA as a percentage of total loans rose to 9.76% in the fourth quarter last fiscal from 5.46% during the same period previous fiscal. Its net NPA ratio also rose to 6.76% from 4.23%.