Allahabad Bank posts Rs 564.96 crore loss in Q1; provisions jump

Allahabad bank’s operating profit declined to Rs967.44 crore in the June quarter from Rs.1,241.50 a year ago, while provisions rose to Rs1,330.78 crore


Net interest income decreased to Rs1,393.2 crore for the June quarter compared with Rs1,587.11 crore a year ago. Photo: Ramesh Pathania/Mint
Net interest income decreased to Rs1,393.2 crore for the June quarter compared with Rs1,587.11 crore a year ago. Photo: Ramesh Pathania/Mint

Mumbai: Allahabad Bank Ltd on Friday reported a Rs.564.96 crore net loss for the quarter ended June against a Rs.146.86 crore net profit a year ago.

The bank made provisions of Rs.1,330.78 crore for the quarter compared with Rs.854.79 crore a year ago. Its operating profit declined to Rs.967.44 crore in the April-June period from Rs.1,241.50 a year ago. Loan provision coverage ratio stood at 46.03% as on 30 June.

According to a Bloomberg poll of four analysts, the bank was expected to post a net loss of Rs.15.27 crore for the June quarter.

Net interest income decreased to Rs.1,393.2 crore for the June quarter compared with Rs.1,587.11 crore a year ago.

Gross non-performing assets (NPAs) rose to Rs.19,208.62 crore from Rs.7,987.44 crore a year ago.

As a percentage of total loans, gross NPAs stood at 12.33% at the end of the quarter, compared with 9.76% in the previous quarter and 5.29% in the year-ago quarter. Net NPAs stood at 8.69% for fiscal first quarter compared with 3.67% last year.

Capital adequacy ratio stood at 10.58% according to Basel III norms as on 30 June.

On Friday, Allahabad Bank shares ended at Rs.75.60 on BSE, up 3.3% from their previous close, while the benchmark Sensex rose 1.05% to close at 28,152.40 points.

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