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Allahabad Bank reports one of highest domestic CASA deposit

KOLKATA: State-owned Allahabad Bank reported a total business of Rs. 3,65,577 crore with a total deposit of the Bank at Rs. 2,10,199 crore for the second quarter of current fiscal. Moreover, the Bank reported total gross credit of Rs.1,55,378 crore.

Domestic CASA deposit (Current Account & Savings Account) stood at Rs. 98,400 crore i.e. 47.02%, one of the highest in the industry.

Bank's Retail Credit grew by 22.63% year-on-year basis to Rs 21539 crore in September 2018 from Rs 17564 crore as on September 2017.

However, the bank reported a net loss of Rs 1,822.71 crore in the September quarter of 2018-19 financial year, on higher provisioning for bad loans.

The bank had posted a net profit of Rs 70.20 crore in the July-September quarter of 2017-18.

However, as compared to the June quarter this fiscal, the bank narrowed the losses from Rs 1,944.37 crore.

Total income also fell to Rs 4,410.72 crore during the reported quarter as against Rs 5,067.78 crore in the same period of 2017-18, Allahabad Bank said in a BSE filing.

Gross non-performing assets (NPAs) jumped to 17.53 per cent of the gross advances as on September 30, 2018 as against 14.10 per cent by the same period a year ago.

Net NPAs or bad loans fell to 7.96 per cent of the net loans as against 8.84 per cent in the year-ago period.

In absolute value, gross bad loans stood at Rs 27,236.19 crore by the end of September quarter 2018-19, as against Rs 21,454.27 crore in the year-ago period. Net NPAs were Rs 11,082.74 crore as against Rs 12,662.18 crore.

Due to rise in bad loans, provisioning for NPAs were raised to Rs 1,991.88 crore for the reported quarter from Rs 1,469.52 crore in the same period of 2017-18.

The overall provisioning and contingencies rose to Rs 2,356.04 crore for the quarter as against Rs 1,497.11 crore in the year-ago period.

Non-performing loan provision coverage ratio of the bank is 67.81 per cent, it said.

Citing RBI circular permitting banks to continue the exposures to MSME borrowers to be classified as standard assets, Allahabad Bank said it has retained advances of Rs 576.43 crore as standard asset as on September 30, 2018.

"In accordance with the provisions of the circular, the bank has not recognised interest income of Rs 18.84 crore and is maintaining a standard asset provision of Rs 27.88 crore as on September 30, 2018 in respect of such borrowers," it said.

The bank also informed that it has spread the provision for fraud/red flagged accounts of Rs 802.70 crore in 27 accounts as on September 30, 2018.

Further, a provision of Rs 161.30 crore (cumulative Rs 390.58 crore up to September 30, 2018) has been reversed out of Rs 390.58 crore, Allahabad Bank said.

Bank has launched a massive customer outreach programme namely, Village and Mohalla Contact programme with the objective to reach out to the existing as well as potential clientele in regard to promotion of Digital Channels for Banking needs and spread financial literacy through awareness about products and services of the Bank

Bank was conferred the "Best Performing PSB" award in campaign "Incredible Leadership" for mobilising maximum number of APY accounts by PFRDA.

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