Allahabad Bank Q4 net loss widens to Rs 3,834 crhttps://indianexpress.com/article/business/banking-and-finance/allahabad-bank-net-loss-widens-5722181/

Allahabad Bank Q4 net loss widens to Rs 3,834 cr

The Kolkata-headquartered lender, which came out of the prompt corrective action (PCA) framework of the Reserve Bank of India in February, had reported a net loss of Rs 732.81 crore for the third quarter of the last fiscal.

Vikram Kothari, the promoter of Rotomac Pen, has allegedly gone abroad after swindling Rs 800 crore from various public sector banks, including Allahabad Bank. (Representational)
Provisions and contingencies rose 10.56 per cent y-o-y to Rs 5,283.70 crore for the March quarter of FY19 from Rs 4,783.42 crore in the corresponding period of FY18. (Representational)

Allahabad Bank on Friday reported widening of its net loss to Rs 3,834.07 crore for the quarter ended March 31, 2019, against a net loss of Rs 3,509.63 crore for the same period a year ago, due to a rise in provisions to cover bad loans.

The Kolkata-headquartered lender, which came out of the prompt corrective action (PCA) framework of the Reserve Bank of India in February, had reported a net loss of Rs 732.81 crore for the third quarter of the last fiscal.

The state-owned bank’s operating profit during the March quarter last fiscal witnessed over five-fold year-on-year jump to Rs 634.26 crore from Rs 122.90 crore in the corresponding quarter of the 2017-18 fiscal, as total income rose more than 8 per cent y-o-y at Rs 4,602.86 crore compared with Rs 4,259.37 crore in the year-ago period.

Its net interest income (NII) also grew 41.61 per cent y-o-y at Rs 1,257.98 crore for the period under review, according to a stock exchange filing by the bank. Net interest margin (NIM) as on March 31, 2019 stood at 2.58 per cent.

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During the January-March period this year, gross non-performing assets (NPAs) in absolute terms increased 1.72 per cent quarter-on-quarter to Rs 28,704.78 crore from Rs 28,218.79 crore in the October-December period last year, according to the filing.

Gross NPA as a percentage of total loans fell 26 basis points (bps) to 17.55 per cent from 17.81 per cent during the previous quarter. During the period under review, net NPA ratio also decreased 248 bps sequentially at 5.22 per cent.

Provisions and contingencies rose 10.56 per cent y-o-y to Rs 5,283.70 crore for the March quarter of FY19 from Rs 4,783.42 crore in the corresponding period of FY18.

Talking to the media on Friday, S S Mallikarjuna Rao, Allahabad Bank MD and CEO, said the bank was hopeful of registering a net profit in the first quarter of this fiscal. “We are planning to raise close to Rs 1,200 crore through Qualified Institutional Placement (QIP) this fiscal,” he said. FE