Allahabad Bank net profit rises 21%

Allahabad Bank net profit rises 21%

Mumbai: Allahabad Bank has posted 402.57 crore net profit during the second quarter ended September 30, 2010, growing at 20.68 per cent over the same period last year. The bank’s executive director D Sarkar attributed the growth to a lower cost of borrowing, rise in yields and the bank’s focus on core operations.

Allahabad Bank witnessed year-on-year growth of 36.83% in advances and 30.15% in deposits during the period. As on September 30, 2010, the bank’s gross advances increased to 83182.67 crore and deposits to 113633.16 crore. The gross credit during the period was 83,183 crore. It posted a credit growth of 36.7% year-on-year.

The bank had set itself a deposit and credit growth target of 25% for the current year, Sarkar said.

The net interest margin of the bank was 3.34% for the second quarter as against 2.84% in the year ago period. The capital adequacy ratio stood at 13.49%.