Lower cost of funds and higher income gave a boost to both Allahabad Bank as well as UCO Bank in the quarter ended June.

In Allahabad Bank’s case, its standalone net profit rose to Rs 347.14 crore for the quarter ended June, against Rs 302.86 crore in the same period last year — a rise of 14.6 per cent. The fee-based income from commission and exchange business also increased 16 per cent to Rs 170 crore in the June quarter from Rs 146.51 crore in the same period last year.

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Net non-performing assets (NPAs) stood at 0.41 per cent last quarter, against 0.37 per cent in June 2009 quarter. In the quarter under review, the bank made a provision of Rs 357 crore (against Rs 287 crore in the quarter ended June 2009), taking the provision coverage ratio of the bank to 85.36 per cent.

UCO Bank net up 45.5%
Government-owned UCO Bank also reported a 45.5 per cent rise in net profit to Rs 260 crore for the quarter ended June, on the back of higher interest income and lower cost of funds. The rise in net profit was in spite of a fresh addition of Rs 416 crore in fresh NPAs in the last quarter, against Rs 125 crore in the same period last year.

Also, while profits from treasury fell to Rs 32 crore in the last quarter against Rs 86 crore in the same period last year, this was offset by a robust rise in interest on investments to Rs 638 crore in the quarter under consideration, against Rs 495 crore in the Q1 of 2009-10.

The yield on investments for the bank increased to 7.36 per cent in the last quarter, against 6.99 per cent in the same period last year.

The net interest income of the bank increased to Rs 937 crore in the last quarter, against 427 crore in the same period last year, a rise of about 119 per cent. The net NPA ratio of the bank in the last quarter was 1.14 per cent last quarter, against 1.15 per cent in June 2009.
 

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