State-owned Allahabad Bank today reported a net loss of Rs 1,944.37 crore in the first quarter ended June due to higher provisioning for bad loans. The bank had registered a net profit of Rs 28.84 crore in the corresponding April-June period of 2017-18.

Total income also fell to Rs 4,794.04 crore as against Rs 4,968.57 crore, mainly owing to a fall in income from other sources. Interest income, however, rose to Rs 4,599.50 crore during April-June, as against Rs 4,147.85 crore in the same period a year ago, the bank said in a regulatory filing.

The bank’s gross bad loans worsened by the end of the June quarter, with gross non-performing assets (NPAs) hitting a high of 15.97 per cent of gross advances as against 13.85 per cent as on June 30, 2017.

In value terms, gross NPAs stood at Rs 25,067.55 crore by end-June 2018, up from Rs 21,032.42 crore in the year-ago period. The net NPA ratio, however, improved to 7.32 per cent (Rs 10,410.30 crore) as against 8.96 per cent (Rs 12,868.66 crore). Thus, the provisioning for bad loans was to be raised to Rs 2,590.37 crore for the June quarter from an allocation of Rs 1,686.70 crore for April-June 2017.

According to RBI directions of June last year, in respect of nine accounts for initiating the insolvency process, the bank said it made fresh provisions of Rs 532.42 crore in the June quarter of this fiscal.

On further regulatory directions of August 2017, the bank made additional provisions of Rs 657.54 crore in respect of accounts under the Insolvency and Bankruptcy Code, it said in the filing. The non-performing loan provision coverage ratio of the bank stood at 67.81 per cent by end-June, Allahabad Bank said.

The stock of the bank fell 5.62 per cent to trade at Rs 40.30 on the BSE.

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