Allahabad Bank posts net loss of Rs 18.2 billion for September quarter

The bank has assessed a capital requirement of about Rs 18 bn to maintain capital adequacy according to Basel-III norms

Allahabad Bank posted a net loss of Rs 18.22 billion for the quarter ended September, against a net profit of Rs 702 million in the year-ago period. The bank expects to come out of Prompt Corrective Action (PCA) by June 2019, said S S Mallikarjuna Rao, managing director and chief executive officer.

The bank has assessed a capital requirement of about Rs 18 billion to maintain capital adequacy according to Basel-III norms. It expects to raise this through options such as QIP, LIC subscription and government capital infusion, said Rao.

The bank’s provisions shot up to Rs 23.56 billion in the quarter,