Allahabad Bank's Q4 net profit rises 55% to Rs 400.22 crore

KOLKATA: State-run Allahabad Bank has reported a 55% rise in net profit for the quarter to March 31, 2012, backed by strong interest earnings while it made less provisioning towards bad loans.

The bank has proposed a 60% dividend for 2011-12 which means Rs 6 per share of face value Rs 10.

The bank's net profit for the quarter stood at Rs 400.22 crore as against Rs 257.61 crore in the corresponding period last year while it earned 34% more interest at Rs 4,168 crore (Rs 3,119 crore).

Its net interest margin or NIM improves to 3.48% for 2011-12 compared with 3.38% in 2010-11. NIM for the fourth quarter was 3.23% as the deposit cost had risen during the fourth quarter.

It provided Rs 454 crore to cover bad loans during the quarter, a tad less than Rs 466 crore in the comparable quarter last year.

Its operating profit rose 16% at Rs 901 crore (Rs 780 crore) while total income rose 26% at Rs 4,523 crore (3,589 crore). The bank has cut provisioning by 2.6% even as its gross non performing ratio marginally deteriorated to 1.83% at the end of the fiscal from 1.74% a year back. Net NPA ratio was 0.98% compared to 0.79% earlier.

The bank has a healthy capital with adequacy ratio standing at 12.83%. Its has crossed a business mix of Rs 2.71 lakh crore and business per employee jumped to Rs 12.17 crore from 10.63 crore last year.

The bank's book value per share increased to Rs 192.93 as on March 31, 2012 from Rs 178.64 a year back. Shareholders e arnings per share surged to Rs 39.18 for the last fiscal from Rs 31.85 in the preceding one.