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Allahabad Bank net profit at Rs 166 crore

Calcutta, May 17: The city-based Allahabad Bank has notched up a net profit of Rs 165.99 crore and declared a dividend of 10 per cent for the financial year ended March 31, 2003.

The bank has also been able to reduce its non-performing assets (NPAs) by 4.01 per cent —the highest ever reduction in a single year since the introduction of prudential norms.

Addressing a press conference here today, K.K. Rai, executive director of the bank, said, “The bank has witnessed a 106.94 per cent growth in its net profit from Rs 80.21 crore in 2001-02 to Rs 165.99 crore in 2002-03. Treasury profit of Rs 336 crore has mainly contributed to this growth.”

The operating profit of the bank during the year rose to Rs 515.83 crore from Rs 407.98 crore in the previous year, a rise of 26.24 per cent.

The other factors that contributed to the growth in profit are: higher interest income, reduction in operating expenses and cost of deposits.

The interest income of the bank has increased to Rs 2570.33 crore in 2002-03 from Rs 2272.84 crore in the previous year, reflecting a growth of 13.09 per cent.

For the first time, reduction in NPAs surpassed the addition to fresh NPAs during the year. Cash recovery, compromises as well as upgradation and write-offs contributed towards the reduction of NPAs to the tune of Rs 570.95 crore. The fresh addition to NPAs was to the tune of Rs 411 crore.

“Our gross NPAs on April 1, 2002 stood at Rs 2002 crore. We have been able to bring it down to Rs 1842 crore in 2002-03,” Rai said.

The provisions made for NPAs has increased to 51.23 per cent from 41.09 per cent in the previous year. The capital adequacy ratio as on March 31, 2003 stood at 11.5 per cent mainly on account of the IPO of Rs 100 crore floated in the last fiscal.

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