Allahabad Bank net profit up 4.6% at `325.37 crore
During the Dec quarter, loans worth `1,461 crore turned sticky, said bank's chairman and managing director
Kolkata: Allahabad Bank’s net profit grew a modest 4.6% in the December quarter despite a 17.44% gain in operating profit because of a sharp jump in provisions towards bad loans.
The bank’s shares plunged 8.5% to close at ₹ 79.50 each on BSE, while the Sensex lost 2%.
The Kolkata-based lender earned ₹ 325.37 crore in net profit in the three months to 31 December, compared with ₹ 310.83 crore in the same period last year. During the quarter, loans worth ₹ 1,461 crore turned sticky, said Subhalakshmi Panse, the bank’s chairman and managing director.
Total provisions rose 24.6% year-on-year to ₹ 684 crore, as net non-performing assets increased from 2.06% a year ago and 3.83% in the September quarter to 4.19%.
The bank’s total income jumped 10.9% over last year to ₹ 5,307 crore, but net interest margin contracted from 3.02% a year ago to 2.75% in the December quarter.
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