Q1 results: Allahabad Bank posts loss, shares tank
Q1 results showed Allahabad Bank made a loss of Rs 1,944 crore in the June quarter against a profit of Rs 28.8 crore a year ago
Mumbai: Allahabad Bank on Tuesday posted June-quarter loss of Rs 1,944 crore against a profit of Rs 28.8 crore a year ago. The interest earned by the bank during the first quarter stood at Rs 4,600 crore, compared with Rs 4,148 crore in the same period of the previous financial year.
Provisions and contingencies rose to Rs 2,763 crore during the April-June quarter, from Rs 1,335 crore in the year-ago period. Provisions for non-performing assets (NPAs) during the quarter came in at Rs 2,950 crore versus Rs 1,687 crore a year ago
Gross NPAs stood at 15.97% of the total advances against 15.96% in the previous quarter, while Net NPAs were at 7.32% against 8.04%.
The bank’s stock ended down 6.3% on the BSE on Tuesday.
On Friday, State Bank of India (SBI) posted a loss for the third consecutive quarter after setting aside funds to cover losses on its bond portfolio and increased gratuity. The country’s top lender by assets turned to a loss of Rs 4,875.85 crore in the June quarter, from a net profit of Rs 2,005.53 crore a year earlier. The bank’s gross NPAs rose to 10.69% of total advances in the June quarter, from 9.97% a year earlier, and 10.91% in the March quarter. Another public sector lender, Punjab National Bank (PNB), which reported a $2-billion fraud in February, also declared a June-quarter loss of Rs 940 crore, against a profit of Rs 343 crore a year ago. Recovery of non-performing assets, cost-cutting measures including shuttering international and domestic branches and better loan margins helped the bank improve on its March quarter performance, where it had reported a record loss of Rs 13,417 crore.
The central government on Monday gave the Central Bureau of Investigation (CBI) and the Reserve Bank of India (RBI) the go ahead to prosecute and initiate criminal charges against former Punjab National Bank (PNB) managing director and chief executive officer (CEO) Usha Ananthasubramanian.
Ananthasubramanian, who was the CEO of Allahabad Bank, was on Monday removed from service with immediate effect, according to people familiar with the development. Allahabad Bank board had earlier stripped Ananthasubramanian of all executive powers after the CBI had named her in the scam.
- IL&FS unit chief resigns amid default crisis at group
- Tata Steel to buy Usha Martin’s steel business for up to Rs 4,700 crore
- Jack Ma prefers to die on the beach than at a work table in Alibaba
- How Indian education technology startups are going global
Editor's Picks »
- India’s renewable energy sector hits a milestone but loses speed
- All eyes now on share swap ratio in this mega bank merger
- Jet Privilege can actually get higher valuation than Jet Airways
- Profitability of cement firms to take a hit due to weak prices, high costs
- Pidilite’s shares hold their ground despite weak rupee and rising crude