Allahabad Bank posts net loss of Rs 3,509.63 crore in Q4

Kolkata: State-run Allahabad Bank on Friday posted a net loss of Rs 3,509.63 crore in the quarter ended March 31 due to increase in provisioning for non-performing assets and reduction in total income.

The bank had posted a net profit of Rs 111.16 crore in the corresponding quarter of previous year.

The lender also said its board on Friday approved the raising of equity capital of the bank aggregating up to Rs 1,900 crore including premium through various modes.

The bank’s total income, in the quarter under review, fell by about 17 per cent to Rs 4,259.37 crore from Rs 5,105.07 crore in the year-ago period.

The lender said its provisions for bad assets were at Rs 5,126 crore at the end of March 31, 2018 as against Rs 1,489.88 crore year-ago.

Its capital adequacy ratio was at 8.69 per cent at the end of fourth quarter of 2017-18, down from 11.45 per cent in the corresponding period previous year.

It also reported that its gross non-performing assets went up to Rs 26,562.79 crore as on March 31, 2018, up by 28 per cent from Rs 20,687.83 crore in the year-ago.

Gross non-performing assets as a percentage of total advances stood at 15.96 per cent at the end of March quarter from 13.09 per cent in same period last year.

Its net non-performing assets were at Rs 12,229.13 crore at the end of this quarter under review, as against Rs 13,433.51 crore as on March 31, 2017.

Net non-performing assets, as percentage, came down to 8.04 per cent at the end of FY18 (2017-18).

The lender said its provision coverage ratio (PCR) improved to 62.91 per cent in FY 2017-18 up from 50.11 per cent in FY 2016-17.

Its return on assets became negative at (-) 5.77 per cent at the end of March quarter as against 0.19 per cent year-ago.

“Bank posted a net loss of Rs. 4674 crore in 2017-18 due to higher Provisions on account of NCLT referred accounts and latest RBI guidelines regarding restructured accounts and aging non-performing assets,” the lender added.

IANS