Allahabad Bank Q1 net fall 20% on surge of bad loans

Moneycontrol Bureau

State-owned Allahabad Bank's first quarter (April-June) net profit dropped nearly 20 percent year-on-year to Rs 413 crore, dented by a spike in bad loans. Net interest income (NII) or the difference between interest earned and paid out, was little changed at Rs 1,312 crore compared with Rs 1,306 crore a year ago.
However, other income, which is not considered as the part of the core banking business, shot up 62 percent y-o-y to Rs 501 crore arresting further erosion of the net profit during the three-month period. Also read: Is RBI June quarter policy a non-event?
In absolute terms, the gross non-performing assets (NPAs) nearly trebled to Rs 6,164 crore as against Rs 2,162 crore in the corresponding quarter of the previous year. The net NPAs surged more than 310 percent to Rs 4,922 crore.
Provisions and contingencies increased  more than 42 percent y-o-y to Rs 445 crore. Gross NPA ratio stood at 4.78 percent as against 1.96 percent while net NPA ratio was at 3.87 percent compared with 1.09 percent.
At 15:20 hrs, Allahabad Bank shares were trading at Rs 72.20, down nearly 5 percent after hitting 52-week low at Rs 70.55 on NSE.
saikat.das@network18online.com