Allahabad Bank Q3 net up 35% on robust loan growth

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Allahabad Bank Q3 net up 35% on robust loan growth

Allahabad Bank has reported a net profit of Rs 560 crore in the third quarter of FY12, a massive jump of 34.6% as compared to Rs 416 crore in a year ago quarter.

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Moneycontrol Bureau

Supported by robust growth both in other income and loans state-owned  Allahabad Bank 's thrid quarter (Oct-Dec) net profit shot up nearly 35% year-on-year to Rs 560 crore. The net interest income or the difference between interests earned and paid out increased 31.3% to Rs 1,381 crore.

The total other income climbed more than 35% to Rs 348 crore. The loan book expanded 17% y-o-y to Rs 1.02 lakh crore. The retail credit stood at Rs 14,400 crore out of the total book.

The gross non-performing asset (NPA) ratio increased from 1.77% to 1.86% quarter-on-quarter. Gross NPAs stood at Rs 1,887 crore in the October-December quarter of FY12 as against Rs 1,715 crore in previous quarter. The net NPA ratio too crawled up from 0.69% to 0.79% sequentially.

The rise in bad loans led to higher provisioning for the Kolkata-based lender. NPA provisions stood at Rs 306 crore compared with Rs 175 crore a year back, a surge of 74% y-o-y.

Meanwhile, deposits grew at 20% to Rs 1.45 lakh crore in rising interest rate regime. Consequently, the cost of deposits moved up nearly 100 basis points to 6.80%.  At the same time, the yield on advances too upped by 163 basis points to 12.21%. This suggests, the bank has successfully passed on the high cost deposits to its lenders.

saikat.das@network18online.com