The Kolkata-based Allahabad Bank is targeting a business of Rs two lakh crore by 2010 at a compounded annual growth rate of 20-25 per cent. | |
| As on March 2007, the bank recorded business of Rs 1,01,458 crore, growing at 29.15 per cent. |
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| Total deposits went up by 22.8 per cent to Rs 59,544 crore compared with an industry growth of 23.10 per cent. The share of current and savings account in total deposits stood at 37.97 per cent. |
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| A C Mahajan, chairman and managing director, Allahabad Bank, said the bank was continuing its focus on improving current and savings account further to bring down its cost of deposits, which increased to 5.67 per cent in 2006-07 compared with 4.97 per cent last year due to hardening of interest rates. |
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| It reported a gross credit growth of 39.4 per cent as on March 2007 at Rs 41,914 crore compared with the industry average of 27.6 per cent. |
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| Priority sector and farm lending formed 39.1 per cent and 18.1 per cent of the net bank credit, respectively. |
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| Speaking after the fifth annual general meeting of the bank, Mahajan said as part of its non-performing asset (NPA) management mechanism, the bank had set up NPA recovery cells in each of the 44 zones. |
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| Though the gross NPA declined to Rs 1,093.59 crore, forming 2.61 per cent of the gross bank credit as on March 2007, compared with 3.94 per cent in the same period previous year, net NPAs increased to 1.07 per cent from 0.84 per cent. |
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| Mahajan said, the capital adequacy ratio of the bank stood at 12.52 per cent as on March 2007, comprising tier I headroom of 8.10 per cent and tier II headroom of 4.42 per cent. |
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| "The bank has enough cushion for maintaining capital adequacy ratio by resorting to various debt instruments such as innovative perpetual debt instruments, upper tier instruments and sub-ordinated debts," Mahajan said. |
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| Total headroom in the tier II segment stood at around Rs 1,600 crore, Mahajan said. However, he said the bank had no immediate plans to raise tier II bonds. |
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| He said, the bank was looking at acquisition opportunities in the small-sized banking segment. |
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| "We have already talked to some players in the market. But the plans are at a conceptual stage," he said. |
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