Money & Banking

Allahabad Bank slumps 73%

Our Bureau Kolkata | Updated on March 12, 2018

Kolkata-based lender Allahabad Bank on Friday reported a 73 per cent dip in net profit to approximately ₹113 crore for the quarter ending June 30, compared with the ₹413 crore it reported in the corresponding period last fiscal.

Despite an 11 per cent increase in interest income to ₹5,049 crore (₹4,564 crore), a decline in other income and near doubling of provisioning during the quarter dragged down the net profit.

Provisioning stood at ₹852 crore for the quarter — a 91 per cent increase over the previous April-June quarter. Other income saw a slight dip by ₹32 crore to ₹501 crore.

Total business of the bank grew by 4.24 per cent. Despite attempts to reach him, Rakesh Sethi, CMD, Allahabad Bank was not available for comments.

The bank, however, saw a slight improvement in asset quality with both gross and net non performing assets (NPAs) coming down on a sequential basis (between January-March and April-June period). Gross non performing assets stood at ₹7619 crore for the April-June period, a decline of ₹449 crore, from the ₹8,068 crore it reported three months back. The gross NPAs too improved to 5.48 per cent (5.73).

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Published on July 25, 2014
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