State-owned Allahabad Bank on Wednesday registered a net profit of Rs 128 crore for the June quarter of the ongoing financial year as provisioning for bad loans fell substantially.
The bank had posted a net loss of Rs 1,944.37 crore in the year-ago period.
It reported a loss of Rs 3,834.07 crore in the preceding March quarter.
Total income was down at Rs 4,747.49 crore in June quarter of 2019-20, as against Rs 4,794.04 crore in the same quarter of the last fiscal, the bank said in regulatory filing.
The bank's provisions for bad loans fell to Rs 1,102.30 crore for the quarter under review from Rs 2,590.37 crore parked aside for the year-ago period.
Gross non-performing assets (NPAs) jumped to 17.43 per cent of gross advances as on June 30, 2019, compared with 15.97 per cent at the end of June last year. Gross NPAs stood at 17.55 per cent at March-end 2019.
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But, net NPAs or bad loans fell to 5.71 per cent at June end 2019 from 7.32 per cent as on June 30, 2018. Compared sequentially, net NPAs rose from 5.22 per cent as on March 31, 2019.
Regarding accounts covered under provisions of Insolvency and Bankruptcy Code (IBC), the bank has made additional provision of Rs 749.51 crore as at March 31, 2018, it said.
Hence, for 2018-19 and quarter ended June 2019 no additional provisioning was required as per the RBI norms.
"However, an amount of Rs 874.62 crore was additionally provided on account of declaration of fraud in loan account in power and steel sector during second quarter of current financial year," Allahabad Bank said.
Besides, the bank has reported one loan account in the power and steel sector under borrowal fraud category to RBI during the second quarter of the current fiscal involving an amount of Rs 1,774.82 crore outstanding as on June 30, 2019.
"The account was already under NPA category since 2016-17 and provision amount to Rs 1,774.82 crore was held in the account as at June-end. This is a consortium advance of 33 lenders which is near resolution stage under NCLT," the bank said.
Also, up to quarter ended June 30, 2019, 353 operational fraud cases were reported involving a total amount of Rs 73 crore.
Out of these accounts, the bank has recovered a total of Rs 13.69 crore and has written back provision of Rs 9.42 crore during the quarter, it added.
The bank's non-performing loan provision coverage ratio stood at 78.58 per cent as on June 30, 2019.
Stock of Allahabad Bank closed at Rs 36.85, down 5.63 per cent on BSE.
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