Allahabad Bank tumbles 15% on weak Q2 results

The stock tanked 15 per cent to Rs 35.40, trading close to its 52-week low of Rs 33.25 touched on October 9, 2018, in the intra-day trade on the BSE.

Shares of Allahabad Bank tanked 15 per cent to Rs 35.40 on BSE after reporting a net loss of Rs 18.23 billion in September quarter (Q2FY19), due to higher provisioning for bad loans and lower interest income. The state-owned bank posted net profit of Rs 702 million in the year-ago quarter. It reported a net loss of Rs 19.44 billion in June quarter.

Net interest income (NII) declined 8 per cent to Rs 11.51 billion in Q2FY19 from Rs 12.54 billion in the corresponding quarter of previous fiscal. Provisioning for bad loans increased 36 per cent at Rs 19.92 billion from Rs 14.70 billion the in previous year quarter.

The asset quality of the bank was further worsened with gross non-performing assets (NPAs) touching 17.53 per cent of gross advances in Q2FY19 against 15.97 per cent in Q1FY19 and 14.10 per cent in Q2FY18. Net NPAs jumped to 7.96 per cent from 7.32 per cent the in previous quarter, while down from 8.84 per cent in year-ago quarter.

At 02:43 pm, the stock was trading 13 per cent lower at Rs 36.15 on the BSE, close to its 52-week low of Rs 33.25 touched on October 9, 201,8 in intra-day trade. In comparison, the S&P BSE Sensex was up 0.62 per cent at 35,030 points. The trading volumes on the counter was more than four-fold with a combined 27.93 million equity shares changed hands on the BSE and NSE so far.