Allahabad Bank reports Rs 1,986 crore Q3 loss

KOLKATA: State-owned Allahabad Bank has reported Rs 1986 crore net loss in December quarter compared with Rs 733 crore net loss in the year ago period, owing to higher provisioning against bad loans as the lender were on trip to cleanse the balance sheet before its merger with Indian Bank. Net loss for the September quarter was Rs 2114 crore.

It's operating profit however grew 17% at Rs 898 crore from Rs 769 crore in the same period.

The bank's gross non-performing assets (NPA) deteriorated to 18.93% of total advances compared with 17.81% a year back, compelling the lender raise provisioning to Rs 3003 crore from Rs 1900 crore to cover bad loans.

Provision coverage ratio rose to 82.42% as against 69.64% a year ago.

The GNPA ratio however improved marginally from 19.05% three months back. The net NPA ratio improved to 5.13% from 5.98% as on September last year and from 7.70% a year back.