Allahabad Bank reports Rs 111 cr net profit in FY17 Q4

Allahabad Bank, which had posted a loss of Rs 581 crore in the March ending of 2015-16, today reported a net profit of Rs 111 crore in the corresponding period of the last fiscal.
MD and CEO of Allahabad Bank Usha Ananthasubramiam said that income from treasury operations contributed to the net profit during the quarter.
She said that the bank was focussing on reduction in the dependence on bulk deposits and laying stress on CASA which was now 46 per cent of total deposits.
"Bulk deposits will be reduced to a minimal level and more focus will on increasing the CASA percentage to reduce the cost of funds and thereby increase profitability", she told reporters here.

On deployment of credit by the bank, she said the loan book was highly skewed towards corporate loans which would now shift to small retail lending.
The bank was also focussing on aggressive NPA recovery, she said adding that addition to slippages had declined in the FY17 Q4 while cash recovery increased in the same period.

She said the bank was facing stress in sectors like steel, textiles, chemicals, power and infrastructure.
The bank today held an EGM to get shareholders' approval for the government's allotment of Rs 418 crore as capital infusion following which the shareholding would rise to 68 per cent.

Net interest margin of the bank was at 2.54 per cent during the quarter.