Abu Dhabi Bank posts Rs 50.20cr loss in FY05

Abu Dhabi Commercial Bank's Indian operations have reported a loss of Rs 50.20 crore in 2004-05 against a net profit of Rs 9.63 crore recorded in 2003-04.

A sharp rise in provisioning at Rs 55.21 crore in 2004-05 (Rs 4.05 crore a year ago) has resulted in the loss. The provisioning for bad loans rose to Rs 31.66 crore in 2004-05 (Rs 5.85 crore).

Its net non-performing assets (NPA) are still high at 12.73 per cent, though it is down from 27.39 per cent in 2003-04. Its gross NPAs dropped to Rs 41.16 crore at March-end (Rs 77.07 crore) after writing off NPAs aggregating Rs 33.11 crore and recoveries of Rs 5.70 crore.

Its net NPAs amounted to Rs 11.43 crore as on March 31, 2005, down from Rs 45.89 crore as on March 31, 2004. The bank's income from Indian operations was also down by 9.63 per cent to Rs 149.80 crore (Rs 165.76 crore).

The total outstanding advances of the bank's Indian operations came down to Rs 89.85 crore in 2004-05 (Rs 167.57 crore).

Its deposits too decreased to Rs 1,662.54 crore in 2004-05 from Rs 1,815.98 crore a year ago. The bank has a CAR of 14.38 per cent, up marginally from 14.22 per cent at the end of 2003-04.

The bank has exceeded prudential exposure limit for individual borrowers in the cases of Lloyds Steel, Larsen and Toubro, Jet Airways, Sun Earth Ceramics, Bhagwandas Bherumal & Co, Shree Precoated Steels and Tata Projects Ltd.