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Allahabad Bank today said its net profit for the quarter ended June 30, 2013 fell by 19.6% from a year earlier to Rs 413 crore as it had to make more provisions against non-performing assets.
The state-run lender made Rs 609 crore provisions during April-June period compared to Rs 442 crore a year earlier. Provisions against bad loans increased to Rs 441 crore in the first three months of this financial year from Rs 270 crore a year ago.
Fresh slippages during the quarter amounted to Rs 1,694 crore. This was primarily because loans worth Rs 675 crore offered to eight companies turned non-performing during this period. The companies include Sonthalia Group, Surya Pharmaceutical, SPS Steel Rolling Mills, Durgapur Chemicals, Vardhman Chemicals, Varun Industries, Associated Pigments and Maithan Ispat.
Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, however, remained optimistic that the bank will be able to improve its asset quality in coming quarters. "These are difficult times and there are challenges. We are continuously monitoring our loan portfolio. We have stepped up our recovery efforts and total recovery amounted to Rs 837 crore in the first quarter," Panse said.
The bank closed the quarter with a gross non-performing asset ratio of 4.78% and net bad loan ratio of 3.87%. It had a restructured loan portfolio of Rs 13,595 crore at the end of June, 2013. Panse said the lender currently has a restructured loan pipeline of Rs 1,300 crore.
Allahabad Bank's provision coverage ratio was 48.18% at the end of the first quarter.
Net interest income, or the difference between interest income and interest expense, was almost flat at Rs 1,312 crore in April-June period. The bank's net interest income was Rs 1,306 crore in the corresponding period of previous year.
Net interest margin improved to 2.83% and the bank aims to expand it further to 3% by the end of this financial year. Other income increased by 62% as trading profit more than trebled to Rs 177 crore.
Advances increased by 16.7% to Rs 128,941 crore, while deposits expanded by 14.9% to Rs 1,80,177 crore. The bank aims to increase its advances to Rs 1,55,000 crore and deposits to Rs 2,05,000 crore by the end of March, 2014.
Allahabad Bank closed the quarter with a capital adequacy ratio of 11.07%.
The state-run lender made Rs 609 crore provisions during April-June period compared to Rs 442 crore a year earlier. Provisions against bad loans increased to Rs 441 crore in the first three months of this financial year from Rs 270 crore a year ago.
Fresh slippages during the quarter amounted to Rs 1,694 crore. This was primarily because loans worth Rs 675 crore offered to eight companies turned non-performing during this period. The companies include Sonthalia Group, Surya Pharmaceutical, SPS Steel Rolling Mills, Durgapur Chemicals, Vardhman Chemicals, Varun Industries, Associated Pigments and Maithan Ispat.
Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, however, remained optimistic that the bank will be able to improve its asset quality in coming quarters. "These are difficult times and there are challenges. We are continuously monitoring our loan portfolio. We have stepped up our recovery efforts and total recovery amounted to Rs 837 crore in the first quarter," Panse said.
The bank closed the quarter with a gross non-performing asset ratio of 4.78% and net bad loan ratio of 3.87%. It had a restructured loan portfolio of Rs 13,595 crore at the end of June, 2013. Panse said the lender currently has a restructured loan pipeline of Rs 1,300 crore.
Allahabad Bank's provision coverage ratio was 48.18% at the end of the first quarter.
Net interest income, or the difference between interest income and interest expense, was almost flat at Rs 1,312 crore in April-June period. The bank's net interest income was Rs 1,306 crore in the corresponding period of previous year.
Net interest margin improved to 2.83% and the bank aims to expand it further to 3% by the end of this financial year. Other income increased by 62% as trading profit more than trebled to Rs 177 crore.
Advances increased by 16.7% to Rs 128,941 crore, while deposits expanded by 14.9% to Rs 1,80,177 crore. The bank aims to increase its advances to Rs 1,55,000 crore and deposits to Rs 2,05,000 crore by the end of March, 2014.
Allahabad Bank closed the quarter with a capital adequacy ratio of 11.07%.
