Allahabad Bank Q2 profit down 63% Rs 65 cr

Allahabad Bank ‘s net profit fell over 63 per cent to Rs 65.03 crore for the September quarter as the lender parked aside a significant amount to meet bad loans and contingencies, while income decreased. The Kolkata-headquartered bank had registered a net profit of Rs 177.10 crore in the July-September quarter of the previous financial year, 2015-16. Its total income decreased to Rs 5,051.61 crore during the second quarter of 2016-17 as against Rs 5,317.06 crore in the same period a year ago, the state-owned bank said in a regulatory filing. As per RBI’s guidelines on cleaning-up bad assets, lenders have been keeping aside higher amounts towards non-performing assets (NPAs) or bad loans, which is mainly responsible for majority of the public sector banks reporting lower profits or losses. “In compliance with RBI directives on asset quality review (AQR), Bank has made incremental quarterly provision of Rs 41.46 crore (Rs 87.80 crore in the half year at 5 per cent of the outstanding amount) in CDR restructured standard accounts for the quarter ended September 30, 2016,” it said. For quarter under review, Allahabad Bank’s provision for bad loans and contingencies was up at Rs 814.40 crore, as against Rs 703.10 crore a year ago. Gross NPAs rose to 12.28 per cent of gross advances as on September 30, 2016, up from 5.26 per cent a year earlier. Net NPAs soared to 8.59 per cent of net loans, from 3.61 per cent year ago. In absolute terms, gross NPAs were at Rs 19,094.53 crore against Rs 7,985.75 crore. While, net NPAs were at Rs 12,800.45 crore, up from Rs 5,359.90 crore. Allahabad Bank scrip closed 2.30 per cent down at Rs 72.20 on BSE.