Allahabad Bank Reports Net Loss of Rs 3509 Cr, Bad Loans Remained the Prime Cause

Public sector lender Allahabad Bank reported a standalone net loss of Rs 3,509.63 crore for the last quarter ended March of 2017-18 due to more than three-time rise in its provisions for bad loans.

The bank had registered a net profit of Rs 111.16 crore in the same quarter of preceding fiscal 2016-17. The bank had reported a loss of Rs 1,263.79 crore in the previous December quarter.

The provisioning for bad loans spurted to Rs 5,126 crore during the March quarter against Rs 1,489.88 crore in the year-ago quarter, according to the regulatory filing by the bank.

Income during the quarter also fell to Rs 4,259.37 crore from Rs 5,105.07 crore as also interest income declined to Rs 3,776.81 crore from Rs 4,372.18 crore in January-March 2017.