Allahabad Bank posts Q3 loss of Rs 1986 cr over higher agri provisions

Higher provisions on account of agriculture loans dragged Allahabad Bank's loss of Rs 1986 crore for Q3 of FY20, against Rs 733 crore in the same period last financial year.  

The bank was asked by RBI to revisit restructured agriculture accounts, which led to higher recognition of NPA in the sector. The bank has been doing this exercise for the last two quarters, K Ramachandram, executive director of the Allahabad Bank told Business Standard.

“We studied all the agriculture accounts in branches. Wherever we found aberrations, we recognized it as NPA,” he said. In Q3, the quantum of agriculture NPA was close to Rs 2500 crore.

The bank’s provision for non-performing assets increased to nearly Rs 3002 crore in Q3 of FY20, against Rs 1900 crore in the same period last financial year.

The bank posted an operating profit of Rs 897.66  crore in Q-3 FY 2019-20, as against Rs 768.96 crore in Q-3 FY 2018-19

The bank’s gross NPA as a percentage of total advances stood at 18.93 per cent, while the net NPA stood at 5.13 per cent in the last quarter. The same period last financial year, the Gross NPA stood at 17.81 per cent, while the net NPA stood at7.70 per cent.