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Allahabad Bank dips on disappointing Q4 earnings

Q4 profit down 69% yoy at Rs 126 crore due to higher provisioning for bad loans and lower net interest income.

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SI Reporter Mumbai
Last Updated : May 07 2013 | 1:59 PM IST
Allahabad Bank has dipped over 5% to Rs 126 on reporting 69% year-on-year (yoy) fall in its net profit at Rs 126 crore for the quarter ended March 31, 2013 (Q4), due to higher provisioning for bad loans and lower net interest income. The state-owned bank had profit of Rs 400 crore in a year ago quarter.

Net interest income (interest earned minus interest expended) too, declined 18% at Rs 1,056 crore on y-o-y basis.

Analysts on an average had estimated net interest income of Rs 1,599 crore and profit of Rs 410 crore.

“Total provisioning, including bad loans provision increased by 37% to Rs 622 crore from Rs 454 crore," Allahabad Bank said in a statement.

The bank’s gross non performing assets (NPA) have been more than double to 3.92% from 1.83%, while Net NPA to 3.19% from 0.98% on yoy basis.

The stock opened at Rs 133 and hit a high of Rs 134 on NSE before the announcement of Q4 results. A combined 7.32 million shares have changed hands on the counter so far on NSE and BSE.
 

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First Published: May 07 2013 | 1:57 PM IST

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