Financial Daily from THE HINDU group of publications
Tuesday, May 10, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 10, 2005 |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks Allahabad Bank mulls foray into insurance, realty fund — Annual profit Rs 542 cr; to pay 30 pc total Our Bureau
Mr O.N. Singh, CMD, Allahabad Bank
Kolkata , May 9 ALLAHABAD Bank is mulling entry into insurance and realty fund businesses through its subsidiary AllBank Finance Ltd. According to the Chairman & Managing Director of the bank, Mr Onkar Nath Singh, the details of the insurance foray - - whether to go for life or non-life insurance or whether to tie up with others already in insurance business or not, were being worked out by consultants. The realty business, he pointed out, was offering exciting opportunities and the bank had already been able to develop database for high net worth individuals from the recent public issue. The CMD said that Allahabad Bank had drawn up a revamp plan for AllBank Finance, now having a paid-up capital of Rs 60 crore. The emerging opportunities identified included investment banking covering structured finance and debt advisory, insurance broking, stock broking, wealth management and portfolio advisory and underwriting. Mr Singh conceded that the future expansion programme would require the bank to generate huge resources. This would be achieved through internal growth as well as strategic tie-ups with other banks and institutions having operational synergies.He, however, declined to give the details of such tie-ups.
Earlier, briefing newspersons about the bank's performance in 2004-05, Mr Singh said the net profit at Rs 541.80 crore as compared to Rs 463.38 crore in 2003-04 showed a growth of 16.92 per cent and operating profit at Rs 1,072.62 crore (Rs 876.25 crore), a growth of 22.41 per cent. Total business at Rs 62,914 crore (Rs 47,865 crore) posted a growth of 31.44 per cent. The board of directors recommended a final dividend of 15 per cent, which together with an interim of 15 per cent, made a total of 30 per cent for the year under review. In 2003-04, the bank declared 20 per cent dividend. The bank's net NPA ratio declined to 1.28 per cent (2.37 per cent) and gross NPA ratio to 5.8 per cent (8.66 per cent). The NPA provision coverage ratio increased to 77.92 per cent (73.75 per cent).
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