State-owned Allahabad Bank on Tuesday reported a net loss of Rs 19.44 billion in the first quarter ended June due to higher provisioning for bad loans.
The bank had registered a net profit of Rs 288.4 million in the corresponding April-June period of 2017-18.
Total income of the bank also fell to Rs 47.94 billion as against Rs 49.68 billion mainly owing to fall in income from other sources.
Interest income, however, rose to Rs 45.99 billion during April-June as against Rs 41.47 billion in the same period a year ago, the bank said in a regulatory filing.
Bank's gross bad loans worsened by the end of June quarter with gross non-performing assets (NPAs) hitting a high of 15.97 per cent of the gross advances as against 13.85 per cent as on June 30, 2017.
In value terms, the gross NPAs stood at Rs 250.67 billion by end-June 2018, up from Rs 210.32 billion in the year-ago period.
Net NPA ratio, however, improved to 7.32 per cent (Rs 104.1 billion) as against 8.96 per cent (Rs 128.68 billion).
Thus the provisioning for bad loans was to be raised to Rs 25.9 billion for June quarter from an allocation of Rs 16.86 billion for April-June 2017.
As per RBI directions of June last year in respect of nine accounts for initiating insolvency process, the bank said it made fresh provisions of Rs 5.32 billion in June quarter of this fiscal.
On further regulatory directions of August 2017, the bank made additional provisions of Rs 6.57 billion in respect of accounts under the Insolvency and Bankruptcy Code, it said in the filing.
The non-performing loan provision coverage ratio of the bank is 67.81 per cent by end-June, Allahabad Bank said.
Stock of the bank fell 5.62 per cent to trade at Rs 40.30 on BSE.