Allahabad Bank Q1 net falls 19.6 per cent

KOLKATA: Allahabad Bank today reported a 19.6 per cent fall in net profit at Rs 413 crore in the first quarter ended June 30, 2013, due to higher provisioning.


The state-owned bank's net profit stood at Rs 514 crore in the corresponding period of the previous fiscal.

However, operating profit of the bank during the reported quarter increased seven per cent at Rs 1,022 crore as against Rs 956 crore in the previous corresponding period.

The dip in net profit in the first quarter had been due to higher provisioning, bank's Chairman and Managing Director Shubhalakshmi Panse told reporters here while announcing the results.

Net interest margin (NIM) of the bank during the first quarter stood at 2.83 per cent (3.17 per cent in the previous similar quarter).

The guidance for NIM during 2013-14 was three per cent, she said.

Regarding NPAs, she said Gross NPA (non-performing assets) was 4.78 per cent at the end of June 2013 and net NPA at 3.87 per cent.

She said that the bank was Basel III compliant and the capital adequacy ratio was 10.60 per cent.

During the first quarter, the bank's market share in deposits was 2.53 per cent and 2.38 per cent in advances.

The bank's target business volume during 2013-14 had been fixed at Rs 3.60 lakh crore, she said.