Allahabad Bank net up 55.8 percent in fourth quarter

May 4th, 2009 - 8:28 pm ICT by IANS  

Kolkata, May 4 (IANS) State-run lender Allahabad Bank Monday reported a net profit of Rs.264.09 crore in the fourth quarter of 2008-09 as against Rs.169.51 crore in the like period last fiscal, a rise of 55.8 percent.
However, the bank’s yearly profit fell 21 percent last fiscal.

“Net profit of the financial year 2008-09 stood at Rs.768.6 crore as against Rs.974.74 crore a year before on account of higher provisioning for investment depreciation and income tax,” K.R. Kamath, chairman and managing director of the bank, told reporters.

The net interest margin (NIM) for 2008-09 increased to 2.88 percent from 2.61 percent. NIM for the fourth quarter was at 2.97 percent, up from 2.32 percent a year ago.

Net non-performing asset (NPA) of the bank in March 2009 was at 0.72 percent, comparing to 0.8 percent in March 2008.

“We are looking at a 20 percent growth in total business in the current year. We are targeting Rs.175,000 crore business by March 2010,” Kamath said.

Of the Rs.175,000 crore, the bank is targeting Rs.100,003 crore from deposits and Rs.72,000 crore from advances, he said.

The city-based bank has a headroom to raise Rs.2,900 crore this fiscal, said Kamath, adding: “We don’t need funds urgently but may raise some if it’s available at a cheaper rate than what it is possible now.”

He ruled out possibilities of slashing interest or deposit rates shortly.

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