State-owned Allahabad Bank today posted a 7.9 per cent rise in net profit at Rs 70.20 crore for the September quarter despite rise in non-performing assets (NPAs).
The Kolkata-headquartered bank had registered a net profit of Rs 65.03 crore in the July-September quarter of the previous financial year.
Total income remained flat at Rs 5,067.78 crore during the quarter as against Rs 5,051.61 crore in the same period a year ago, the bank said in a statement.
MD and CEO of Allahabad Bank Usha Ananthasubramanian said that the bank had made higher provisioning during the quarter as the provision coverage ratio increased to 54.33 per cent in the second quarter as against Rs 47.60 crore in the previous second quarter.
She said that bank was shedding bulk deposits and its share had decreased from 14 per cent to 2.37 per cent. The bank would fovus on small and micro industries, agriculture and retail.
During the quarter, gross NPAs rose to 14.10 per cent of gross advances, up from 12.28 per cent a year earlier.
Similarly, net NPAs rose to 8.84 per cent of net loans, from 8.59 per cent.
As a result, provisions for bad loans doubled to Rs 1,469.52 crore from Rs 692.08 crore a year ago.
Capital adequacy ratio of the bank improved to 54.33 per cent in the quarter from 47.60 per cent in the same quarter a year ago, it said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
