Allahabad Bank Q2 net tanks 52 percent
Allahabad Bank Monday announced a 52.01 percent slide in net profit to Rs.234.20 crore for the quarter ended Sep 30, 2012, from Rs.488.02 crore in the like period last year.
The Kolkata-headquartered bank's profit before tax for the second quarter under review stood at Rs.802.29 crore against Rs.949.30 crore for the corresponding period a year ago.
Total income of the public sector bank, however, increased to Rs.4,582.64 crore from Rs.4,202.54 crore.
Deposits of the bank increased to Rs.161,957 crore during the quarter from Rs.142,043 crore for the corresponding period a year ago, registering a year-on-year growth of 14.02 percent.
Gross credit stood at Rs.1,12,159 crore during the period against Rs.96,854 crore for the corresponding period last year, a hike of 15.80 percent.
"Year-on-year, the cost of deposit has gone up and there has been reduction in cost of deposits as we have off loaded bulk deposits to the tune of Rs 12,150 crore. Secondly, due to market scenario, we have reduced our base rate."
"Both have impacted NII (net interest income). Our credit portfolio has seen an increase of 14 percent, so there is a deep decline in NIM (net interest margin) with both combined efforts," chairman and managing director (CMD) Shubhalakshmi Panse told reporters after announcing the results here.
"Our Annual Financial Inspection (AFI) was completed in the September quarter, where we made some observations and took it on board, as a result of which there was a substantial jump in a fresh NPA accretion," said Panse.
The bank's net interest margin (NIM) stood at 2.80 percent for the quarter ended Sep 30, 2012. Its gross NPA to gross advances was 2.95 percent, while its net NPA to net advances was 2.10 percent.
The CMD said the bank was aiming to bring down the gross NPA to 2 percent by the fiscal-end.
Total capital adequacy ratio of the bank stood at 12.16 percent as on Sep 30 this year.
Panse informed that the bank had applied to the Central government to infuse Rs.1,500 crore to raise its tier-I capital.
The bank is also planning to open 250 branches during the current financial year.