Allahabad Bank picks 20 more firms for referring to NCLT

Kolkata-based Allahabad Bank has identified close to 20 accounts, with a total exposure of around Rs 908 crore, for referring to  the National Company Law Tribunal (NCLT).

About 14 other accounts, in which Allahabad Bank is among other lenders, have also been identified, an official of Allahabad Bank said.  The bank’s exposure in these 14 accounts is about Rs 1,652 crore.

In the Reserve Bank of India’s first list of 12 companies that were identified for referring to NCLT, Allahabad Bank had an exposure in 10 companies, amounting to Rs 4,429 crore.

The bank had lent to nine of the 12 firms, and was an investor in one of the accounts. In the second list of 29 companies issued by the RBI, Allahabad Bank had an exposure in 13 accounts, amounting to Rs 4,049 crore.

Out of the 20 firms identified by the bank, one firm has already been referred. “In most of the companies which we have referred to NCLT on our own,  100 per cent provisioning has already been made. Most of the companies are unlisted ones,” said Usha Ananthasubramanian, managing director and chief executive officer, Allahabad Bank.

Key numbers

* The bank posted a net profit of Rs 65.03 crore in the July-September quarter of the previous financial year

* Total income remained flat at Rs 5,067.78 crore during the quarter, as against Rs 5,051.61 crore in the same period a year ago

* The bank had made higher provisioning during the quarter as the provision coverage ratio increased to 54.33% in the second quarter