INSUBCONTINENT EXCLUSIVE:
Kolkata: State-run Allahabad Bank reported Rs 1944 crore net loss for the first quarter against Rs 29 crore net profit for the year ago
period, owing to doubling of provisions to cover sticky loans and mark-to-market investment losses
A steep fall in other income also added to the woes.
The bank said the loss was due to higher provisions on account referred to bankruptcy
courts by the National Company Law Tribunal as well as the aging non-performing assets accounts
The withdrawal of debt restructuring scheme contributed to the loss.
The lender made Rs 1190 crore fresh provision for initiating bankruptcy
proceedings following Reserve Bank of India’s direction
It has made another Rs 91 crore provision against mark-market investment losses while the treasury operation suffered Rs 161 crore loss as
compared with Rs 698 crore profit in the year ago period.
The investment loss led to 76% drop in the bank’s other income at Rs 195 crore
Operating profit shrunk 29% at Rs 830 crore for the June quarter as against Rs 1170 crore in the year ago period, according to data
furnished by the lender to stock exchanges.
The Kolkata-based bank’s stock plummeted 6.32% to Rs 40 on BSE reacting to the poor financial
results while the BSE Sensex gained 0.55% to 37852 points ending its two-day losing streak.
The oasis in Allahabad Bank’s financial
performance could be its asset management which did not deteriorate further unlike many of its peers
Gross non-performing assets ratio remained flat sequentially at 15.97% as on June
But it was 13.85% a year back.
Its capital adequacy ratio as per Basel III stood at 6.88% as on June 30, 2018, below the regulatory
The government would inject Rs 1790 crore this fiscal to lift the capital position
The bank has convene an extraordinary general meeting on September 18 to seek other shareholders’ approval for the preferential issue to
the government.
Its total business grew to Rs 3.65 lakh crore from Rs 3.54 lakh crore a year back
Total deposit stood at Rs 2.08 lakh crore while advances stood at Rs 1.57 lakh crore at the end of June.
