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Kolkata: Allahabad Bank reported a net loss of Rs 3,510 crore in the fourth quarter owing to higher loan risk coverage as well as taking cover against frauds involving Punjab National Bank and diamond trader Nirav Modi.
The bank posted net profit of Rs 111 crore in the year-ago period.
In a regulkatory filling to stock exchanges, the bank said it had fully provided for the entire funded exposure in respect of two gems and jewellery borrower group, where fraud was declared by some banks.
It did not mention what was its exposure to these specific fraud case but said 43 fraud cases were reported in FY18 involving a total amount of Rs 1525 crore which were fully covered by provisions.
This is the second quarterly loss in a row for the Kolkata-based state-owned bank taking the annual loss at Rs 4674 crore.
Higher provisions against sticky loans referred to bankruptcy courts contributed to the loss.
The bank's operating profit fell 89 per cent at Rs 123 crore in the fourth quarter compared with Rs 1066 crore in year ago period, owing to dip in treasury income and higher loss in wholesale banking.
Its gross NPA ratio slipped to 15.96 per cent as on March 2018, from 14.38 per cent a quarter ago and from 13.09 per cent a year back.
The bank said Reserve Bank of India's revised rules on stressed assets resolution and scrapping of all past loan restructuring schemes also contributed to the rise in non-performing assets.
Provision against sticky loans and other contingencies rose to Rs 4783 crore in the fourth quarter from Rs 1430 crore in the year ago period.
The bank said provision coverage ratio improved to 62.91 per cent in FY18, up from 50.11 per cent in FY17.
The loss squeezed the capital of the bank with capital adequacy ratio shrinking to 8.69 per cent from 11.45 per cent a year ago.
