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Mounting bad loans and higher provisioning dragged down the performance of Allahabad Bank, which posted a net loss of ₹1,264 crore for the quarter ended December 31, 2017. The bank had recorded a net profit of ₹75 crore in the same period last year.
Provisions and contingencies surged 169 per cent to ₹2,413 crore (₹896 crore) during the period under review.
“The net loss is on account of higher provisions made for ageing NPAs and NCLT-referred accounts and losses incurred in treasury operations during the quarter,” said a press statement issued by the bank.
Gross non-performing assets as a percentage of advances increased to 14.38 per cent (12.51 per cent), while net NPAs rose marginally to 8.97 per cent (8.65 per cent).
The bank’s scrip closed at ₹56.25, down 7.79 per cent on the BSE on Wednesday.
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