The Hindu Business Line : Allahabad Bank Q2 net rises 14%

Kolkata, Oct. 17 Allahabad Bank has recorded a net profit of Rs 239.78 crore for the quarter ended September 30, as compared to Rs 210.03 crore for the corresponding quarter last year, registering an increase of 14 per cent.

The bank’s gross profit for the period was Rs 299.55 crore (Rs 243.23 crore), an increase of 23 per cent.

Gross NPA declined from 2.46 per cent in end-June to 2.4 per cent as on September 30. Net NPA came down marginally to 0.75 per cent, from 0.76 per cent during this period.

Mr A.C. Mahajan, Chairman and Managing Director, said the bank will focus on providing more credit to critical groups, including agri and retail sectors. It will also step up plans to open new accounts as part of its financial inclusion programme. In the last three months, it opened 7 lakh new accounts. The bank recorded a business of Rs 1,08,458 crore as on September 30 as against Rs 90,477 crore last year. On a year-on-year basis, its business posted a 19.8 per cent increase.

Total deposits stood at Rs 65,896 crore and total credit at Rs 42,561 crore. On a year-on-year basis, gross deposits and gross credit grew by 22 per cent and 16 per cent respectively.

Armed with a capital adequacy ratio of about 13 per cent, the bank has no immediate plans to raise resources from the market, the CMD said. It is exploring the possibility of opening new offices overseas, especially Kenya and Bangladesh. Between September last year and September 2007, more than 100 branches were opened.

The non-life insurance venture between Sompo of Japan, Allahabad Bank and a few other domestic banks will shortly offer its first product.

The company named Universal Sompo will tap all business segments, Mr Mahajan said. It will be the first roll-out of an insurance company after the setting in of the de-tariffed regime.

The products will be offered from over 4,000 branches of Allahabad Bank, Indian Overseas Bank and Karnataka Bank. The last two are partners in the venture.

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