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Allahabad Bank reports Q1 net profit of Rs 128 cr on good credit growth

The gross NPA of the bank, as a percentage of its total lending, stood at 17.43 per cent in the last quarter

Namrata Acharya  |  Kolkata 

Allahabad Bank picks 20 more firms for referring to NCLT
Allahabad Bank

has reported a net profit of Rs 128 crore in Q1FY20, against a loss of Rs 1,944 crore in the same period of the last financial year.

According to SS Mallikarjuna Rao, MD and CEO of Allahabad Bank, good credit growth and lower provisioning helped the bank book profit. In February this year, the bank came out of RBI's (PCA) framework, which had imposed restrictions on certain categories of lending.

The bank registered a year-on-year credit growth of 8.75 per cent in the last quarter. The total provisions of the bank in the last quarter stood at about Rs 732 crore, against Rs 2,774 crore in the same period last year. According to Rao, the bank has already provided for around 95 per cent for all accounts referred to NCLT, with a total exposure of about Rs 18,000 crore.

The gross non-performing assets (NPA) of the bank, as a percentage of its total lending, stood at 17.43 per cent in the last quarter, against 15.97 per cent in the same period last year. The net stood at 5.71 per cent in the last quarter, against 7.32 per cent in the same period last year.

In the last financial year, the bank recorded fresh slippages worth Rs 2,986 crore, with agriculture and MSME sectors accounting for a large share. Rao said the bank owes about Rs 1,500-1,600 crore repayment from states on account of debt waiver schemes. A major share is from the government of Madhya Pradesh, which so far has released only about 10 per cent of funds. The bank is expecting repayment of about Rs 1,170 crore by the Madhya Pradesh government alone in the second quarter.

In view of the higher slippages in the agriculture sector, the bank is reassessing the portfolio, said Rao.

First Published: Wed, July 31 2019. 17:59 IST
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