Allahabad Bank reports Q3 loss of Rs1,264 crore as bad loans rise
Allahabad Bank reports a net loss of Rs1,263.79 crore in the third quarter compared to a net profit of Rs75.26 crore a year ago as bad loans mounted, provisions soared
Mumbai: State-owned Allahabad Bank Ltd on Wednesday reported a net loss of Rs1,263.79 crore in the December 2017 quarter compared to a net profit of Rs75.26 crore a year ago as bad loans mounted and provisions soared.
However, the loss was limited due to a tax write-back of Rs227.50 crore during the quarter. In the year-ago quarter, it had a tax write-back of Rs108.05 crore.
Asset quality worsened further. Provisions and contingencies surged 169.32% to Rs2413.46 crore from Rs896.13 crore a year ago.
Gross non-performing assets (NPAs) rose 21.84% to Rs23,260.81 crore at the end of the December quarter from Rs19,091.89 crore in the same quarter last year.
As a percentage of total loans, gross NPAs stood at 14.38% as compared to 14.10% in the previous quarter and 12.51% in the year-ago quarter. Net NPAs were at 8.97% in the December quarter compared to 8.84% in the previous quarter and 8.65% in the same quarter last year.
Net interest income (NII) or the core income a bank earns by giving loans increased 13.83% to Rs1346.91 crore compared with Rs1183.31 crore last year. Other income was at Rs511.50 crore, down 29.92% from Rs729.87 crore a year ago.
Allahabad Bank shares closed at Rs56.25 on BSE, down 7.79% from their previous close, while India’s benchmark Sensex Index fell 0.42% to 34,155.95 points.