Allahabad Bank today posted 53.01% dip in net profit at Rs 234.20 crore for the second quarter of the current fiscal, because of increase in provisioning for non-performing assets and diminishing fair value of restructured accounts.
The Bank had net profit of Rs 488.01 crore in the July- September quarter of the 2011-12 fiscal.
"The dip in the net profit in September quarter was mainly on account higher provisioning for NPAs, diminishing fair value of restructured accounts.
"Also, we have written off some accounts," Allahabad Bank's new CMD Subhalakshmi Panse told reporters here.
She said that by January-March quarter and the target is to bring down gross NPA to 2%, from the existing 2.95% of gross advances.
When asked why the bank's NPA increased during the quarter from 1.77% in the corresponding quarter of the last fiscal, Panse, who took charge of the bank on October 1, said she was "yet to go and see deeply what the reasons for the increased NPA are".
The Kolkata-based lender would increase focus on mid- corporate and retail segments, she said adding, "We are looking to grow very aggresively in these two segments. In housing and vehicle financing, we target to increase exposure to 20%."
Housing sector in Bangalore, Pune and Gujarat looked interesting, she added.
Panse said the bank has also applied to the government for fresh capital of Rs 1,500 crore.
During the quarter, the bank's total business increased to Rs 2,74,116 crore, a 14.74% rise from Rs 2,38,897 crore in the corresponding period of 2011-12. While deposits rose to Rs 1,61,957 crore, gross credit was more at Rs 1,12,159 crore.
Capital adequacy ratio during the quarter was 12.16%. Net Interest Margin was 2.80% against 3.68%.
During the half-year ended September 2012, the bank's net profit showed 17.43% dip to Rs 748.23 crore, against the year-ago period.
