Allahabad Bank rallies on better-than-expected Q2 results

MUMBAI: Shares of Allahabad Bank picked momentum after it reported better-than-expected results for the quarter ended September 2013. According to analyst tracking the sector, the bank’s profit & loss performance was strong. It reported a strong fee income growth as well.

Allahabad Bank’s net profit for the quarter ended September 2013 surged to Rs 276 crore, up 17.8 per cent, as against a net profit of Rs 234.2 crore in the corresponding quarter last fiscal.

Net interest income for the quarter rose to Rs 1,309 crore, up 11.5 per cent, as compared to Rs 1,174 crore, in year-ago period.

The bank’s gross NPAs stood at 4.94 per cent vs 4.78 per cent, Q-o-Q and net NPAs at 3.83 per cent vs 3.87 per cent, Q-o-Q.

Allahabad Bank provisions in the second quarter stood at Rs 742 crore.

According to banking sector analyst, the results are above estimates. Asset quality has slightly deteriorated, Q-o-Q but the bank’s provison cover has improved. It was carrying excess provisions, hence treasury hit got offset by that much amount.

At 01:05 p.m.; the stock was at Rs 88.10, up 8.83 per cent, on the BSE. It touched a high of Rs 88.45 and a low of Rs 80.05 in trade today.