Gross non-performing assets (NPA) as a percentage of the gross advances rose significantly by 162bps sequentially to 19.05 percent.
Public sector lender Allahabad Bank's net loss widened to Rs 2,114 crore during the July-September quarter, dented by higher provisions and worsening asset quality.
The loss in the corresponding quarter of the last fiscal stood at Rs 1,823 crore.
The net interest income (NII), the difference between interest earned and interest expended, in Q2FY20 grew by 10.9 percent year-on-year to Rs 1,275.7 crore, with a muted credit growth of 2 percent.
"Advances during the quarter increased to Rs 1.42 lakh crore from Rs 1.39 lakh crore YoY, while deposits rose 3 percent YoY to Rs 2.17 lakh crore," the bank said in a BSE filing.
On the asset-quality front, gross non-performing assets (NPA) as a percentage of gross advances rose significantly by 162bps sequentially to 19.05 percent and net NPA climbed 27bps QoO to 5.98 percent in the quarter.
Provisions and contingencies stood at Rs 2,740.6 crore, higher by 171.6 percent QoQ and 16.3 percent YoY, but the provision coverage ratio improved to 79.3 percent from 78.6 percent on sequential basis.
The bank’s non-interest income (other income) grew by 24.3 percent year-on-year to Rs 511.14 crore and pre-provision operating profit increased 18.5 percent to Rs 632.87 crore in Q2FY20.The share price was quoting at Rs 26.50, down Rs 0.50, or 1.85 percent, on the BSE at 1521 hours.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.