Allahabad Bank posts loss of Rs. 1,823 crore

Cites higher provisioning, ageing NPAs

Allahabad Bank’s net loss narrowed to Rs. 1,822.71 crore from the Rs. 1,944.4 crore loss in the immediately previous quarter. The bank said in a regulatory filing that its losses were due to higher provisioning on account of NCLT-referred accounts and latest RBI guidelines regarding restructured accounts and ageing NPAs.

The bank had posted a net profit of Rs. 70.2 crore in the July-September quarter of 2017-18. Gross non-performing assets rose to 17.5% from 15.9% in the previous quarter. The bank received Rs. 3,054 crore capital infusion from the Centre on November 12. On November 8, the lender had, in an exchange filing, said the Centre will infuse Rs. 3,054 crore as capital in the current fiscal.

The bank will also raise an additional Rs. 1,800-1,900 crore to shore up capital adequacy, its MD and CEO S.S. Mallikarjuna Rao said on Tuesday. Towards this, the bank was “exploring all options — government help, QIP and hiving off non-core assets and stake in JVs,” he said.

United Bank of India

Separately, United Bank said its loss had increased to Rs. 883.17 crore in the second quarter of this fiscal, against a loss of Rs. 388.7 crore in the immediately previous quarter due to higher provisioning and contingencies.

Source:https://www.thehindu.com/todays-paper/tp-business/allahabad-bank-posts-loss-of-rs-1823-crore/article25489415.ece

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