In its regulatory filing, the bank attributed its losses to higher provisioning on account of NCLT-referred accounts and ageing NPAsNew Delhi: Even as Allahabad Bank’s net loss came down to Rs 1,822.71 crore from the Rs 1,944.4 crore, its gross non-performing assets rose to 17.5 percent as compared to 15.9 percent in the previous quarter.
In its regulatory filing, the bank attributed its losses to higher provisioning on account of NCLT-referred accounts and latest RBI guidelines regarding restructured accounts and ageing NPAs. Allahabad Bank had registered a profit of Rs 70.2 crore in the July-September quarter of 2017-18 and had received Rs 3,054 crore capital infusion from the Centre on November 12.
Recently, the bank’s Chief Executive Officer (CEO) SS Mallikarjuna Rao has said that the lender will raise an additional Rs 1,800-1,900 crore to shore up capital adequacy. And he added that in order to achieve it, the bank was “exploring all options,” including government help, QIP and hiving off non-core assets and stake in JVs.
United Bank of India losses rise further
Separately, United Bank said that its loss had widened to Rs 883.17 crore in the second quarter of the current fiscal, against the previous quarter’s Rs 388.7 crore due to higher provisioning and contingencies.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.