Allahabad Bank eyes Rs 400 crore net in FY04

Allahabad Bank expects to clock a Rs 400 crore net profit, and a Rs 750 crore operating profit in 2003-04. The bank's business is expected to touch Rs 50,000 this year.

O N Singh, chairman, said, "We had fixed a target of Rs 400 crore net profit for 2003-04, which we are confident of achieving. We also hope to achieve the operating profit and business target figures."

Meanwhile, the bank has also firmed up plans of charting overseas territories through two new overseas branches one each in China and Abu Dhabi.

Singh said," We would like to maintain the current CAR of 11 per cent, and bring down our non-performing asset level to less than 1 per cent by 2005."

"A liberal provisioning would allow us to bring the NPA levels to one per cent," he explained. Meanwhile, the chairman has also firmed up plans to increase its asset base to Rs 60,000 crore by 2005.

The bank is also planning to introduce some sort of segmentation at its branches. "While some branches will be retail focused some would specialise in corporate accounts, credit and deposit."

It is also planning to increase retail credit by Rs 1,000 crore next year through its retail boutiques through 100 new retail boutiques.

The chairman also said that majority of its branches were situated in the Indo-gangetic belt which had a huge potential for mobilisng low cost deposit and retail finance because the belt was witnessing increased consumer spending.

On IT, the bank hopes to achieve 100 per cent mechanisation by March 2005 and implement CBS at 400 branches covering almost 75 per cent of its business.

All-Bank has also firmed up plans of taking a 10 per cent stake in ASREC India Ltd "" the asset reconstruction company floated by UTI.