Allahabad Bank posts Rs 564.96 cr loss in Q1

Public sector lender Allahabad Bank on Friday reported a net loss of Rs 564.96 crore for the quarter ended June 30 as compared to a net profit of Rs 146.86 crore in the year-ago period.

The lender also said it is planning to raise up to Rs 500 crore through a preferential issue to Life Insurance Corporation of India (LICI) and another Rs 500 crore through a qualified institutional placement.

The bank's gross NPA in absolute term rose by a 140.5 per cent year-on-year to Rs 19,208.62 crore from Rs 7987.44 crore in the same period last year. Its gross NPA as a percentage of total loans rose to 12.33 per cent in the quarter from 5.29 percent a year-ago period, according to a filing to BSE.

Its operating profit during the June quarter dipped over 22 per cent year-on-year (y-o-y) at Rs 967.44 crore compared with Rs 1241.50 crore for the corresponding period last fiscal. Its total income during the period under review fell by 5 per cent y-o-y at Rs 5122.91 crore.

Provisions and contingencies grew 55.7 percent y-o-y to Rs 1330.78 crore for the first quarter this fiscal from Rs 854.79 crore for the same period last fiscal, mainly to cover a sharp rise in bad loans. Provision coverage ratio was 46.03 per cent as on June 30, 2016.

In a BSE filing, the lender said its board of directors in a meeting approved raising equity capital aggregating up to Rs 500 crore by way of preferential issue to LICI and/or other Indian financial institutions/companies. In addition to this, the board has also approved raising further equity capital of the bank by way of qualified institutional placement, aggregating up to Rs 500 crore.

--IANS

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