State-run Allahabad Bank on Tuesday reported a net loss of Rs 1,944.37 crore for the first quarter ended June against a net profit of Rs 28.84 crore in the corresponding quarter a year ago as the lender saw 29% fall in operating profit and 53.6% rise in provisions to cover sticky loans.
The Kolkata-headquartered bank, however, has pruned the losses substantially on a quarter-on-quarter basis. Its net loss for the fourth quarter last fiscal had stood at Rs 3,509.63 crore.
Gross non-performing assets (NPAs), in absolute term, came down to Rs 25,067.55 crore as on June, 2018, from Rs 26,562.79 crore as on March 2018. However, on year-on-year basis, it was up by over 19% from `21,032.42 crore as on June, 2017, the bank said in a stock exchange filing. Gross NPAs as a percentage of total loans stood at 15.97% in the quarter under review against 15.96% in the previous quarter, while net NPAs were at 7.32% against 8.04%. On Tuesday, Allahabad Bank’s scrip fell 6.32% to end at `40 on BSE. The lender announced its first quarter results during trading hours.
During the June quarter this fiscal, the bank’s operating profit fell to `829.81 crore from `1,170.32 crore during the corresponding period last fiscal, with non-interest income witnessing a decline of 76.3% y-o-y at `194.54 crore, owing to losses from treasury operation. Net interest income (NII), however, rose 37% y-o-y to `1,703.65 crore compared with `1,242.69 crore. Net interest margin (NIM) improved to 3.18% from 2.35% y-o-y, the bank said.
Total income of the bank during the April-June period fell 3.5% y-o-y to `4,794.04 crore from `4,968.57 crore in the corresponding period a year ago. Provisions and contingencies rose to `2,762.82 crore during the April-June quarter from `1,335.36 crore in the year-ago period.
