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Allahabad Bank slips after RBI announces further restrictions

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Capital Market
Last Updated : May 15 2018 | 12:31 PM IST

Allahabad Bank fell 3.51% to Rs 42.65 at 12:04 IST on BSE after the Reserve Bank of India imposed restrictions on the bank's lending to risky assets and raising high-cost deposits in view of deteriorating financial health.

The announcement was made after market hours yesterday, 14 May 2018.

Meanwhile, the S&P BSE Sensex was up 262.55 points, or 0.74% to 35,819.26.

On the BSE, 2.08 lakh shares were traded in the counter so far compared with average daily volumes of 1.85 lakh shares in the past two weeks. The stock had hit a high of Rs 43.50 and a low of Rs 42.05 so far during the day. The stock hit a 52-week high of Rs 90.70 on 17 May 2017. The stock hit a 52-week low of Rs 42.05 on 15 May 2018.

The Reserve Bank of India (RBI) has asked Allahabad Bank to restrict expansion of RWA (risk-weighted assets); to reduce exposure to unrated and high-risk advances; to restrict creation of non-banking assets; (and) to restrict accessing/renewing wholesale/costly deposits. The Kolkata-based bank said its board meeting on 11 May took note of the restrictions.

Allahabad Bank reported net loss of Rs 3509.63 crore in Q4 March 2018 as against net profit of Rs 111.16 crore in Q4 March 2017. Total income declined 16.57% to Rs 4259.37 crore in Q4 March 2018 over Q4 March 2017.

Government of India holds 64.77% stake in Allahabad Bank (as on 5 April 2018).

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First Published: May 15 2018 | 12:09 PM IST

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