Allahabad Bank Q4 net dips, overall PAT rises 57 p.c.

KOLKATA: Allahabad Bank said its net profit declined by 14.98 per cent to Rs 224.50 crore in January-March quarter due to fall in treasury income.

The treasury income fell to Rs 61 crore in the last quarter of 2009-10 from Rs 245 crore in the same quarter last year, Allahabad Bank Chairman & Managing Director J P Dua told reporters here.

The bank expects treasury income to remain flat due to lack of volatility, he added.

"We want to focus on core operations and we are also looking at volume growth," he said.

Total net profit of the bank during 2009-10 stood at Rs 1,206 crore, registering a rise of 57 per cent over 2008-09.

He said that the bank's target was to achieve a CASA of 36 per cent of total deposits.

Net interest margin of the bank increased to three per cent from 2.97 per cent during the last quarter.

On capital requirement, he said that the bank had approached the government for Rs 1,000 crore. The bank's capital adequacy ratio was at 13.62 per cent.

Dua said that the bank had also approached the RBI for opening a representative office in Dhaka. Allahabad Bank was already having an overseas branch in Hong Kong.

For 2010-11, the bank was looking at a business growth of 25 per cent. During 2009-10, business of the bank stood at Rs 1,78,493 crore.