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AllBank profit grows 25%

Calcutta, May 7: City-based Allahabad Bank has reported a 25 per cent rise in net profit for the fourth quarter ended March at Rs 157.75 crore against Rs 126.15 crore in the corresponding period a year ago.

However, the net profit was sequentially lower than Rs 325.36 crore posted in the previous quarter owing to a rise in non-performing assets (NPAs), which resulted in higher provisions and contingencies.

Gross NPAs of the public sector lender increased to Rs 8,068.04 crore from Rs 5,136.99 crore in the fourth quarter of 2012-13. Gross NPA as a percentage of advances increased to 5.73 per cent from 5.47 per cent in the third quarter and 3.92 per cent a year ago.

The bank’s provisions and contingencies stood at Rs 639.31 crore against Rs 556.91 crore in the previous quarter and Rs 622.49 crore in the year-ago period.

The bank’s capital adequacy ratio under the Basel II norms has fallen to 10.26 per cent during the quarter against 11.03 per cent a year ago. It is looking to infuse Rs 320 crore through qualified institutional placement and is awaiting clearance from the government.

For the financial year 2013-14, net profit stood at Rs 1,172.02 crore against Rs 1,185.21 crore in the previous fiscal.

Total business increased 7.13 per cent to Rs 3,31,748 crore. Gross credit grew just 7.61 per cent.

Newly appointed chairman and managing director Rakesh Sethi attributed the lower growth in credit to the lack of appetite from the corporate segment. He had said that the bank would focus on lending to agriculture, small and medium enterprises and retail customers.

The bank is targeting a growth of 14.54 per cent in total business at Rs 3,80,000 crore by March 2015.

The board of directors, which met today, has not recommended any final dividend for 2013-14, the bank said in a statement to the Bombay Stock Exchange.

The Allahabad Bank scrip was down 8.31 per cent to Rs 95.45 today from the previous close of Rs 104.10 on the BSE.

 
 
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