Money & Banking

Allahabad Bank seeks ₹800 cr from divestment

Our Bureau Hyderabad | Updated on December 26, 2018 Published on December 26, 2018

Lender aiming to bring down NPAs to ₹24,000 crore by the end of FY19

Allahabad Bank is expecting ₹600-800 crore from divestment before March 31, 2019. The bank is also expecting the government to infuse additional capital into it.

“We have already received a capital investment of ₹3,054 crore from the government last month,” said Ch SS Mallikarjuna Rao, Managing Director and Chief Executive Officer of Allahabad Bank.

He was here to inaugurate the bank’s contact centre, which will work round-the-clock to attend to customer queries. The bank has referred as many as 131 accounts of stressed assets aggregating ₹16,600 crore to the National Company Law Tribunal (NCLT) for resolution. “Of these, 81 accounts were admitted. We are hoping that 18 cases aggregating ₹4,000 crore would be resolved by the end of the financial year,” he said.

The bank is targeting to bring down its gross non-performing assets to ₹23,000-24,000 crore by the end of the financial year from ₹27,236 crore at the end of the second quarter this financial year.

“As part of the turnaround plan, the bank is looking to bring down the net NPA ratio to below 6 per cent by the first quarter of next financial year,” he said.

The net NPA ratio as of September 2018 quarter stood at 7.96 per cent, while gross NPA ratio was at 17.53 per cent.

“We don’t want to take any capital from the government in the next financial year as its stake in the bank already stands at 83 per cent. We, however, may go for a QIP (qualified institutional placement), a follow-on public offer or rights issue for capital requirements,” he said.

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Published on December 26, 2018
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