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| Allahabad Bank net profit jumps 56% to Rs 264 crore |
| BS Reporter / Kolkata May 05, 2009, 00:58 IST |
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 Allahabad Bank On Monday said its net profit rose 55.80 per cent to Rs 264.09 during the fourth quarter of 2008-09, as against Rs 169.51 crore during the corresponding period in the previous year.
The operating profit for the quarter was Rs 614.15 crore, up 66 per cent, against Rs 369.97crore a year earlier.
However, for the year-ended March 2009, the bank reported a 21.15 per cent fall in net profit to Rs 768.60 crore, as against Rs 974.74 crore in the previous year.
The bank’s Chairman and Managing Director K R Kamath said, the rise in net profit in the fourth quarter was on account of around 42 per cent increase in net interest income (NII) and about 45 per cent growth in non-fund interest income. The bank has also recorded an investment trading profit of Rs 244.58 crore in the quarter against Rs 124.36 crore in the corresponding previous quarter.
"We have concentrated on core operations. Our letter of credit and bank guarantee commission went up by 25 per cent. Processing fee also increased by about 65 per cent," said Kamath.
Its net interest income in the quarter was 42.54 per cent higher at Rs 592.50 crore as against Rs 415.69 crore in the corresponding period last year.
During the quarter, provisioning went up 74 per cent to Rs 350.06 crore.
The bank made provisions of Rs 188 crore (Rs 70.86 crore) for non-performing assets (NPA) in the quarter. Depreciation on investment was Rs 23.03 crore (Rs 85.55 crore). Net interest margin (NIM) improved to 2.97 per cent (2.32 per cent) in the quarter.
Deposits grew by 18.65 per cent per cent to Rs 84,971 crore in the quarter. Gross advances grew by 18.15 per cent to Rs 59,433 crore.
Net non-performing assets (NPA) of the bank was 0.72 per cent (0.80 per cent) at Rs 419.11 crore in the quarter. Gross NPA was 1.81 per cent (2 per cent) at 1,078.25 crore. Its capital adequacy ratio stood at 13.11 per cent (11.99 per cent).
The bank has also been shedding high-cost deposits, which at present is 8.16 per cent of the total deposits. May raise Rs 2,900 cr
The bank has a headroom to raise up to Rs 2,900 crore, with Rs 600 crore in Tier-I capital, Rs 2,300 crore in Tier-II in FY10, said Kamath.
In FY10, the bank expects to have a total business of Rs 1,75,000 crore, a 20 per cent growth over FY09. Of this, the share of deposits would be Rs 1,03,000 crore, and advances would be Rs 72,000 crore, added Kamath.
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