Allbank Q1 net jumps over 3-fold

Kolkata-based Allahabad Bank has posted a 224 per cent increase in net profit for the quarter ended June 2009 to Rs 302.86 crore from Rs 93.36 crore in the corresponding period last year.

The operating profit for the quarter was Rs 590.63 crore, up 92.56 per cent compared with Rs 306.73 crore a year ago. In the same period, the public sector bank reported a total income of Rs 2,377.70 crore, up 28.55 per cent from Rs 1,849.63 crore in the previous corresponding period.

The growth in net profit was mainly on account of higher investment trading profit and growth in treasury income.

 

Investment trading profit for the April-June quarter stood at Rs 214.04 crore as against Rs 32.17 crore in the corresponding period last year.

“Volatility in the market offers us good opportunity to make money and treasury profits,” said K R Kamath, chairman and managing director of the bank, after announcing the results.

The public sector bank had a treasury income of Rs 575 crore last financial year.

“We would like to maintain FY09’s treasury income level of Rs 575 crore during FY10,” said Kamath.

Other income during April-June zoomed up 156 per cent at Rs 369.51 crore. The bank has also achieved a growth in net interest margin (NIM) to three per cent for the quarter from 2.60 per cent a year ago.

‘We expect to maintain NIM at 2.88 per cent during the current year,’ Kamath said.

The bank’s deposits grew by 22.12 per cent to Rs 89,401.23 crore from Rs 73,206.52 crore in the year-ago period, while advances increased by 21.02 per cent to Rs 60,137.77 crore from Rs 49,691.51 crore last year.

Total business of the bank stood at Rs 150,403 crore as on June 30 as against Rs 1,23,451 crore in the previous year, showing a year-on-year growth of 21.83 per cent. The total income of the bank rose to Rs 2,377.70 crore during April-June this year from Rs 1,849.63 crore in the year-ago period.

The bank’s net interest income has gone up by 34.27 per cent during April-June to Rs 629.06 crore.