Riding on the back of higher growth in advances and lower provisioning, Allahabad Bank registered a net profit of ₹128 crore for the quarter ended June 30, 2019, against a loss of ₹1,944 crore in the same period last year.

According to SS Mallikarjuna Rao, MD and CEO, Allahabad Bank, credit grew by around 9 per cent on a year-on-year basis during the quarter under review. The total provisions of the bank in the last quarter stood at about ₹732 crore, against ₹2,774 crore in the same period last year.

“Our provision coverage ratio improved to 78.58 per cent at the end of June 2019, against 67.81 per cent in the same period last year. We have already provided around 95 per cent for all accounts referred to NCLT, with a total exposure of about ₹18,000 crore,” he told newspersons here on Wednesday.

The gross non-performing assets of the bank, as a percentage of total advances, stood at 17.43 per cent (15.97 per cent) during the period under review, while net NPA came down to 5.71 per cent (7.32 per cent) in Q1.

Allahabad Bank, however, recorded fresh slippages to the tune of ₹2,986 crore during the quarter under review. Agricultural NPAs, at around ₹1,135 crore, accounted for nearly 38 per cent of the total slippages, while MSME accounted for another 26 per cent.

“We are seeing some stress in the agriculture and MSME portfolio. The strain is likely to continue in Q2,” he said.

The bank is looking to raise around ₹1,000-1,500 crore through QIP route during the current quarter to fund its growth needs this fiscal, he said.

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