Allahabad Bank posts Q3 loss Rs 1,264 cr, provisions spike 169%; asset quality weakens

Public sector lender Allahabad Bank has posted net loss of Rs 1,263.79 crore for December quarter 2017, dented by higher provisions and lower other income.

Profit reported by the bank for year-ago quarter was at Rs 75.26 crore.

Net interest income, the difference between interest earned and interest expended, grew by 13.83 percent to Rs 1,346.91 crore compared to Rs 1,183.31 crore in same quarter last year.

Asset quality weakened further in Q3, with the gross non-performing assets in absolute terms rising 8.4 percent sequentially to Rs 23,260.81 crore and net NPAs up 7.77 percent at Rs 13,646.52 crore for quarter ended December 2017.

Gross NPAs as a percentage of gross advances were higher at 14.38 percent in Q3 from 14.10 percent in Q2FY18 and net NPAs as a percentage of net advances were higher at 8.97 percent against Rs 8.84 percent QoQ.

Provisions and contingencies increased sharply by 61.21 percent quarter-on-quarter and 169.32 percent year-on-year to Rs 2,413.46 crore in Q3FY18.

Other income (non-interest income) dropped 30 percent to Rs 511.5 crore compared to year-ago and operating profit rose 6.81 percent to Rs 922.17 crore YoY.

At 14:53 hours IST, the stock price was quoting at Rs 56.85, down Rs 4.15, or 6.80 percent on the BSE.

Source