Allahabad Bank Q3 net profit at Rs75.26 crore
Allahabad Bank’s third-quarter profit rises on lower provisions against bad loans and higher other income
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Mumbai: Allahabad Bank on Monday reported a net profit in the December quarter as compared with a loss in the year-ago period, owing to lower provisions against bad loans and higher other income.
The state-owned lender reported a net profit of Rs75.26 crore in the third quarter as compared with a loss of Rs486.14 crore a year ago. Net interest income (NII), or the difference between interest earned on loans and that spent on deposits, fell 16.44% on a year-on-year basis to Rs1,183.31 crore. Other income, though, rose by 77% from a year-ago period to Rs729.87 crore.
The bank made provisions worth Rs795.82 crore against bad loans in the third quarter, down 50% from Rs1,593.57 crore made during the same quarter a year ago.
In October-December FY16, the Reserve Bank of India (RBI) had conducted a asset quality review (AQR), where the regulator asked banks to classify a large number of stressed accounts as non-performing and make higher provisions against them.
The bank’s asset quality condition stabilized as gross non-performing assets (NPA) came down slightly on a quarter-on-quarter basis. As on 31 December, Allahabad Bank reported gross NPA worth Rs19,091.89 crore, down marginally from Rs19,094.53 crore in the quarter ended 30 September.
As a ratio of gross advances, the bank’s gross NPAs were at 12.51% at the end of the third quarter, as compared with 12.28% in the second quarter. The lender reported a net NPA ratio of 8.65% in the October-December period as compared with 8.59% as on 30 September.
At 3:17pm, Allahabad Bank stock was trading at Rs73.05 on the BSE—down 1.15% from its previous close.