Allahabad Bank’s net rises 8% in September quarter
Mumbai: Allahabad Bank on Friday reported an 8% increase in net profit for the September quarter because of lower provisions and a tax write-back.
The bank reported a profit of Rs70.20 crore in the quarter compared with Rs65.03 crore a year ago.
Provisions and contingencies fell 5.8% to Rs3,844.85 crore from Rs4,081.28 crore a year ago. On a quarter-on-quarter basis, the figure was up marginally by 1.23% from Rs3,798.25 crore. Allahabad Bank also benefited from a tax write-back of Rs344.38 crore in the quarter.
Net interest income (NII), or the core income a bank earns by giving loans, declined 7% to Rs1,254.46 crore from Rs1,349.43 crore a year ago. Non-interest income increased 39.52% to Rs877.78 crore from Rs629.15 crore.
Asset quality worsened in the quarter. As a percentage of total loans, gross non-performing assets (NPA) stood at 14.10%, compared with 13.85% in the previous quarter and 12.28% in the year-ago period.
Gross NPAs stood at Rs21,454.27 crore, up 12.36% from Rs19,094.53 crore a year ago and Rs21,032.42 a quarter ago.
Advances in the quarter totalled Rs1.43 trillion, down 3.8% from the same quarter last year. Deposits rose 3.53% to Rs2.07 trillion.
Allahabad Bank shares rose 1.6% to Rs79.85 on the BSE on a day the benchmark Sensex rose 0.19% to 33,314.56 points.