Calcutta, July 25: Public sector Allahabad Bank has reported a 72.71 per cent dip in net profit at Rs 112.7 crore in the first quarter ended June.
Net profit stood at Rs 413.09 crore in the same period a year ago.
The city-based lender’s bottomline was dragged down by a sharp rise in provisioning to offset an increase in bad loans.
Profit from treasury operations was also lower at Rs 203.31 crore against Rs 206.54 crore in the same period a year ago.
The bank’s total provisioning during the quarter stood at Rs 851.94 crore against Rs 445.50 crore in the year-ago quarter.
Gross non-performing assets (NPA) increased to Rs 7,619.06 crore from Rs 6,164.47 crore a year ago. Gross NPA, as percentage of advances, was 5.48 per cent against 4.78 per cent a year ago.
Net NPA stood at Rs 5,271.74 crore against Rs 4,921.74 crore. Tax expenses increased to Rs 254.87 crore from Rs 163.33 crore in year ago period.
Net interest income — the difference between interest earned and interest spent — increased 22.7 per cent to Rs 1,609.7 crore from Rs 1,312 crore in the corresponding year-go quarter.
As a result, the capital adequacy ratio under Basel II norms declined to 10.25 per cent from 11.07 per cent a year ago. According to Basel III norms, the ratio fell to 9.99 per cent from 10.60 per cent.
At the end of the quarter, the bank’s total business grew 4.24 per cent to Rs 3,22,231.19 crore.
There was a rise in credit to both agriculture as well small scale industries. Credit to the agriculture sector grew 30.54 per cent to Rs 23,243 crore from Rs 17,805 crore a year ago. Loans to the retail sector stood at Rs 19,635.72 crore against Rs 17,757.87 crore .
Chairman and managing director Rakesh Sethi had identified these sectors as the focus areas in the absence of lack of appetite for loans from the corporate sector.
The bank is planning to achieve a total business of Rs 3,80,000 crore by March 2015, a growth of 14.54 per cent.
The Allahabad Bank scrip today ended at Rs 118.75, an increase of 1.28 per cent over the previous close on the BSE.