Allahabad Bank reported a net loss for the fourth quarter of 2018 of Rs 3509.63 crore, as against a profit of Rs 111.16 crore during the fourth quarter of 2017. The reason behind the decline in profit is attributed to increase in the bank's provisions for bad loans.
During the previous year, the bank had recorded a net profit of Rs 111.16 crore for the fourth quarter of 2017.
For the third quarter of 2018, which ended on December 31, 2017, the bank reported the net loss to the tune of Rs 1263.79 crore.
Provision for bad loans of Allahabad Bank rose to Rs 5,126 crore during the fourth quarter of 2018 as compared to Rs 1,489.88 crore in the previous years quarter (Q4 2017), the bank stated in its regulatory filing.
Income of the bank also declined sharply and stood at Rs 4,259.37 crore for the fourth quarter of 2018 as against Rs 5,105.07 crore for the fourth quarter of 2017.
Interest on the income of the bank dwindled to Rs 3,776.81 crore in the fourth quarter of 2018 as compared to Rs 4,372.18 crore in the fourth quarter of 2017.
Net loss for the financial year 2017-18 broadened to Rs 4,674.37 crore from Rs 313.51 crore during 2016-17. Total income shrunk to Rs 19,051.05 crore in the financial year 2017-18 from Rs 20,304.72 crore in the 2016-17.
Provision for Non Performing Assets (NPA) for 2017-18, increased to Rs 10,326.45 crore from Rs 4,552.37 crore during 2016-17.
The Board of Directors of Allahabad Bank has approved to raise equity capital of up to Rs 1,900 crore through various ways.
The Bank has recognized Deferred Tax Assets of Rs 1118.19 Crore on business loss and unabsorbed depreciation as per Income Tax Act for the fiscal 2017-18 based on thorough review and according to Accounting Standard (AS) 22-Accounting for Taxes on Income.
During the financial year 2017-18, 43 number of fraud cases were reported involving a total amount of Rs 1525.35 crore. Out of these accounts, the Bank has recovered a total amount of Rs 2. 76 crores and made a total provision for balance amount of Rs 1522.59 crore during the year.
The shares of Allahabad Bank declined by 0.98% and stood at Rs 45.65 in BSE at 3:44 PM (IST) on May 11, 2018.