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Allahabad Bank confident of coming out of PCA by June 2019, says SS MD Mallikarjuna Rao

Updated : February 06, 2019 05:16 PM IST

State lender Allahabad Bank on Wednesday it is confident of coming out of prompt corrective action (PCA) framework of the Reserve Bank of India by June 2019.

"In all probability by June, we will be satisfying all the parameters related to PCA and we would be in a position to request RBI to review our status," said SS Mallikarjuna Rao, MD and CEO, Allahabad Bank

Last week, RBI has lifted lending curbs on three out of 11 weak public sector banks (PSBs). Eight public sector banks including Allahabad Bank still remain under PCA framework, which imposes lending restrictions and prevents them from expanding, among other curbs.

Allahabad Bank on Wednesday reported narrowed net loss at Rs 732.81 crore for third quarter ended December of the current financial year due to reduction in bad loan provisions. The bank had posted a net loss of Rs 1,263.79 crore in the same period of the previous fiscal.

Total income was nearly flat at Rs 4,756.88 crore for December quarter of 2018-19, as against Rs 4,755.33 crore in the same period of 2017-18,

On slippages in Q3, Rao said, "In Q4, we are projecting around Rs 1,500 crore as the slippage and in that also the large corporate if any residual amount is there, it could be around Rs 300-400 crore."
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