Q3 Results: Allahabad Bank’s net loss drops down to Rs 733 Cr

There were fresh slippages of Rs 2,450 crore during the last quarter, compared to the expectation of less than Rs 2,000 crore

Kolkata: Allahabad Bank reported a net loss of Rs 733 crore for the December ending quarter, down from Rs 1,264 crore in the same period of the previous year. The net loss was Rs 1,822 crore for the second quarter of FY19. There were fresh slippages of Rs 2,450 crore during the last quarter, compared to the expectation of less than Rs 2,000 crore, SS Mallikarjuna Rao, MD, and CEO, Allahabad Bank said.

Of this, Rs 300-crore exposure in three accounts to IL&FS turned non-performing assets, Rao said. He also said that the bank has a total exposure of about Rs 1,245 crore to IL&FS covering 12 to 13 accounts, while the rest of the accounts, amounting to nearly Rs 900 crore, are in the standard category.

Bank hopes to settle 10 accounts by March

The bank is expected to break even by June and put forward its plan to come out of PCA (prompt corrective action) to the RBI, said Rao. The bank also hopes to resolve 10 major accounts in NCLT by March, with a total exposure of around Rs 2,749 crore. The bank expects a write back of about Rs 350 crore from these accounts.

Will bring down govt shareholding

The bank will look for further capital infusion from the government by March. The government shareholding presently in the bank stands at around 83 percent. According to regulations, as the bank is required to reduce government shareholding to 75 percent by October next year, it will go to market in tranches to bring down the government stake after March, said Rao.