Allahabad Bank Net Up 101%

Allahabad Bank has registered a 101 per cent growth in net profit at Rs 80.21 crore on a business volume of Rs 34,481 crore in 2001-02.

Bank chairman and managing director B Samal said: "We have targeted a business of Rs 41,500 crore and a profit of at least Rs 150 crore for the current fiscal." The bank will also lower its prime lending rate (PLR) by 25 basis points in two tranches to 11.5 per cent in the next six months, he informed.

The operating profit at the bank stood at Rs 407.98 crore of which around Rs 190 crore was from treasury operations and the rest came from its core banking operations and fee based income. The bank has also paid a dividend of Rs 16 crore to the Government of India.

The bank reduced its non-performing assets by Rs 350 crore, but new NPAs to the tune of Rs 530 crore has increased the total exposure from Rs 1,821 crore to Rs 2,000 crore in 2001-02. Although net NPA to net advances ratio declined from 11.23 per cent to 10.57 per cent, the bank has put on hold its decision of going for a public issue. "We will try to bring down net NPA levels to 9 per cent first, only then will we approach the capital markets," he explained.

The bank managed to increase its deposits by 12.7 per cent to Rs 22,666 crore, while advances rose 14.5 per cent to Rs 11,815 crore. The bank earned a total income of Rs 2,272 crore, including interest earned on advances at Rs 1,117 crore and interest on investment at Rs 1,054 crore. The bank registered a total income of Rs 2,657 crore against Rs 2,310 crore.

Priority sector credit at the bank grew 13.7 per cent to Rs 4,855 crore forming 44.37 per cent of net bank credit. Total agricultural advances at the bank was Rs 1,994 crore, forming 18.11 per cent of the net bank credit.

Credit-deposit ratio increased to 52.1 per cent from 51.3 per cent, while its business per employee stood at Rs 1.55 crore against Rs 1.26 crore in the previous year.

Meanwhile, Allahabad Bank has targeted a Rs 53,000 crore total business by 2005. "This is expected to translate into a Rs 750 crore gross profit," said Samal.