Allahabad Bank net rises 8%

State-owned Allahabad Bank on Friday posted a 7.9 per cent rise in net profit at ~70.20 crore for the September quarter despite rise in non-performing assets (NPAs).

The Kolkata-headquartered bank had registered a net profit of ~65.03 crore in the July-September quarter of the previous financial year. Total income remained flat at ~5,067.78 crore during the quarter as against ~5,051.61 crore in the same period a year ago, the bank said in a statement.

Usha Ananthasubramanian, managing director and chief executive officer of Allahabad Bank, said that the bank had made higher provisioning during the quarter as the provision coverage ratio increased to 54.33 per cent in the second quarter as against ~47.60 crore in the previous second quarter. She said that bank was shedding bulk deposits and its share had decreased from 14 per cent to 2.37 per cent. The bank would fovus on small and micro industries, agriculture and retail. During the quarter, gross NPAs rose to 14.10 per cent of gross advances, up from 12.28 per cent a year earlier. Similarly, net NPAs rose to 8.84 per cent of net loans, from 8.59 per cent. As a result, provisions for bad loans doubled to ~1,469.52 crore from ~692.08 crore a year ago.

Capital adequacy ratio of the bank improved to 54.33 per cent in the quarter from 47.60 per cent in the same quarter a year ago, it said.