Allahabad Bank's March quarter net loss at Rs 35.09 bn; revenue down 17%

State-run Allahabad Bank on Friday posted a net loss of Rs 35.09 billion in the quarter ended March 31 due to increase in provisioning for non-performing assets and reduction in total income.

The bank had posted a net profit of Rs 1.11 billion in the corresponding quarter of previous year.

The lender also said its board on Friday approved the raising of equity capital of the bank aggregating up to Rs 19 billion including premium through various modes.

The bank's total income, in the quarter under review, fell by about 17 per cent to Rs 42.59 billion from Rs 51.05 billion in the year-ago period.

The lender said its provisions for bad assets were at Rs 51.26 billion at the end of March 31, 2018 as against Rs 14.89 billion year-ago.

Its capital adequacy ratio was at 8.69 per cent at the end of fourth quarter of 2017-18, down from 11.45 per cent in the corresponding period previous year.

It also reported that its gross non-performing assets went up to Rs 265.62 billion as on March 31, 2018, up by 28 per cent from Rs 206.87 billion in the year-ago.

Gross non-performing assets as a percentage of total advances stood at 15.96 per cent at the end of March quarter from 13.09 per cent in same period last year.

Its net non-performing assets were at Rs 122.29 billion at the end of this quarter under review, as against Rs 134.33 billion as on March 31, 2017.

Net non-performing assets, as percentage, came down to 8.04 per cent at the end of FY18 (2017-18).

The lender said its provision coverage ratio (PCR) improved to 62.91 per cent in FY 2017-18 up from 50.11 per cent in FY 2016-17.

Its return on assets became negative at (-) 5.77 per cent at the end of March quarter as against 0.19 per cent year-ago.

"Bank posted a net loss of Rs. 4674 crore (46.74 billion) in 2017-18 due to higher Provisions on account of NCLT referred accounts and latest RBI guidelines regarding restructured accounts and aging non-performing assets," the lender added.