Allahabad Bank said on Wednesday its net profit for the quarter ended March increased 25 per cent from a year earlier to Rs 157.8 crore, aided by higher interest income. However, a sharp rise in non-performing assets kept investors worried, with the bank's share losing almost nine per cent in Wednesday's trade.
Gross bad loans increased to Rs 8,068 crore at the end of March, 2014, from Rs 7,512 crore a quarter earlier. The gross NPA ratio deteriorated by 26 basis points sequentially to 5.73 per cent, while the net bad loan ratio improved by four basis points to 4.15 per cent. Provision coverage ratio was at 46 per cent.
Allahabad Bank reported 7.6 per cent year-on-year increase in gross credit, which stood at Rs 140,905 crore at the end of March, 2014. Deposits were up 6.8 per cent from a year earlier to Rs 190,843 crore at the end of 2013-14. The share of low-cost current account savings account (Casa) deposits was at 31.5 per cent of the bank's total deposits.
Net interest margin during the quarter was at 2.67 per cent.
The bank closed last financial year with a capital adequacy ratio of 9.96 per cent according to Basel-III rules. The state-run lender has set a target of achieving Rs 380,000 crore of total business by March 31, 2015, from Rs 331,748 crore at the end of the last financial year.