Dragged down by higher provisioning for non-performing assets and lower income from core operations, Allahabad Bank posted a 20 per cent drop in net profit to Rs 413 crore for the quarter ended June 30, 2013, against Rs 514 crore in the corresponding quarter last year.

According to Chairperson and Managing Director Shubhalakshmi Panse, the bank reported fresh slippages of Rs 1,694 crore during the quarter against Rs 590 crore in the same period last year.

Of this, nearly Rs 675 crore worth loans given to eight large companies slipped into the non-performing asset category during the quarter.

On a sequential basis, however, profits jumped by 227 per cent from Rs 126 crore in the January-March quarter.

“On a sequential basis, slippages have come down from Rs 2,586 crore during the January-March 2013 quarter. The entire banking industry is going through a tough phase because of the challenges in the economy. We are continuously monitoring our credit portfolio,” Panse said.

Nearly 15.8 per cent of its restructured assets worth Rs 13,595 crore have turned NPAs. The bank proposes to restructure Rs 1,300 crore worth loans during the July-September 2013 quarter.

Gross NPAs as a percentage to advances increased to 4.78 per cent (1.96 per cent), while net NPAs increased to 3.87 per cent (1.09 per cent). NPA provisions rose to Rs 441 crore (Rs 270 crore).

Net interest margin stood at 2.83 per cent (3.17 per cent). The bank aims to achieve NIM of 3 per cent by the end of this fiscal. The bank expects 15-16 per cent growth in business to Rs 3, 60,000 crore this fiscal.

The bank’s capital adequacy ratio stood at 11.07 per cent (12.94 per cent). It hopes to get Rs 1,500 crore from the Union Government by the end of this fiscal.

The Allahabad Bank scrip closed at Rs 71.90, down by 5.15 per cent on the BSE on Monday.

>shobha.roy@thehindu.co.in

Related Topics
comment COMMENT NOW