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Allahabad Bank expects slippage run-rate to be at Rs 800-1000 crore for FY20

Updated : February 21, 2019 01:56 PM IST

Allahabad Bank is expecting the slippage run-rate to be around Rs 800-1000 crore per quarter for the financial year 2020, said SS Mallikarjuna Rao, managing director and CEO of the bank.

Allahabad Bank is one of the banks that will exit the prompt corrective action (PCA) list after PSU banks received capital from the government.

Discussing the same, Rao said that the capital allocated would sufficient to take care of the requirement of the regulatory needs as well as to ensure that the net NPA goes below 6 percent.

Talking about slippages, he said in the first three quarters, the number was high but in the fourth quarter, the bank is expecting both recoveries and upgrades of more than Rs 2,000 crore. For FY20, the bank expects slippage run-rate to be around Rs 800-1000 crore per quarter, said Rao.

The capital allocated to the bank is Rs 6,896 crore. The net NPAs stand at 7.7 percent as of December 31, 2018, said Rao.

With regards to the bank coming out of PCA, he said, "It is the prerogative of the RBI and we will hear from them." "The bank would be subscribing to government bonds and the inflow amount would be treated as capital."

With regards to IL&FS, he said the bank has exposure to 18 accounts amounting to Rs 1,225 crore. Out of the total exposure, Rs 380 crore has been recognised as NPAs. Going forward the bank expects 10 accounts to be upgraded in NCLT list, he added.
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