Allahabad Bank net profit fell 44.5% to R310.83 crore for the quarter ended December 31, 2012, against R560 crore last year. Higher provisioning for bad assets, additional provisioning for standard restructuring and provisioning for wage revision have affected the bank?s profitability for the third quarter.
Total income of the bank increased 11% to R4,785.34 crore against R4,620.28 crore a year ago. Net interest income fell 3.7% to R1,330 crore from R1,381 crore in the same period last year.
?There are a couple of reasons? higher provision as far as NPA provisioning is concerned… RBI has mandated higher provisioning for standard restructuring for which we had to set aside an additional R93 crore in the third quarter,? bank?s CMD Subhalakshmi Panse said. The bank has made a total provisioning of R549 crore for the third quarter of the current fiscal. It has made a provision of R343 crore towards bad and doubtful assets. Gross credit of the bank rose 19.59% to R1,21,555 crore in the third quarter against R1,01,640 crore a year ago. Deposits rose 17.45% to R1,70,649 crore from R1,45,300 crore last year.
Net NPA of the bank as on December 31, 2012, stood at 2.06% against 0.79% in the similar period last year. On quarterly basis, net NPA rose 4 basis points to 2.1% in the second quarter. Net interest margin of the bank as on December 2012 stood at 3.02% against 2.8% as on September, 2012.
