Our Bureau

Dragged down by higher provisioning, Allahabad Bank saw its losses widening to ₹2,114 crore for the quarter ended September 30, 2019, when compared to ₹1,823 crore in the same period last year. Provisions and contingencies during the quarter under review grew 16 per cent to ₹2,741 crore, against ₹2,356 crore in the same period last year. Provisioning for NPA spiked to ₹2,722 crore, when compared to ₹1,992 crore.

The bank, which had come out of the prompt corrective action (PCA) framework of the Reserve Bank of India in February this year, had reported a net profit of ₹128 crore for the first quarter of this fiscal. Net interest income grew by 11 per cent to ₹1,276 crore (₹1,150 crore). Other income increased by 24 per cent to ₹511 crore (₹411 crore). Operating profit increased by around 19 per cent to ₹633 crore. The bank’s net interest margin stood at 2.61 per cent as on September 2019. The bank’s asset quality saw some deterioration during the quarter under review.

Gross non-performing assets (NPA), as a percentage of total assets, increased to 19.05 per cent (17.53 per cent), while net NPAs increased to 5.98 per cent (7.96 per cent).

Published on November 08, 2019