Allahabad Bank's H1 net profit dips 69%

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Kolkata, Oct 18 (UNI) Allahabad Bank's net profit growth has dipped 69.32 per cent at Rs 135.04 crore in the first half of the current fiscal against Rs 440.18 crore in the corresponding period pervious year.

Informing this to newspersons here today, Bank Chairman and Managing Director (CMD) K R Kamath said the decrease in profit was mainly attributed to the increased depreciation on investment by Rs 448.90 crore due to general market scenario as well as interest and other charges reversal on agriculture debt relief and debt waiver by Rs 71.23 crore.

The bank's operating profit was raised at Rs 620.94 crore between April and September during the current financial year against Rs 588.42 crore in the same period last year, showing a growth of 5.53 per cent.

When asked whether there would be cut in the interest rate, Mr Kamath said the bank would adopt a wait and watch strategy regarding the market conditions.

Meanwhile, the Bank has notched up 15.59 per cent growth in its business at Rs 1,25,363 crore between April and September during the current fiscal from Rs 1,08,458 crore in the same period last year.

Mr Kamath said the deposits of the bank was assessed at Rs 73,648 crore from April to September this year, from Rs 65,896 crore in the same period previous year, registering a growth of 11.76 per cent.

Such amount was recorded at Rs 71,616 crore at the previous fiscal-end, he added.

The bank's gross credit stood at Rs 51,715 crore from April to September during the current fiscal against Rs 42,561 crore in the same period last year. Such figure stood at Rs 50,312 crore at the end of the pervious fiscal.

The year-on-year basis growth in the bank's gross credit was 21.51 per cent.

The gross credit to total deposit ratio stood at 70.22 per cent at the end of the previous month, while such figure was 64.59 per cent on September 30, 2007.

Furthermore, the gross non performing assets (NPA) to gross advances further declined to 1.93 per cent as at September-end of the present financial year against 2.4 per cent as at September 30, 2007 and two per cent at March-end.

'' The net NPA to net advances ratio was recorded at 0.85 per cent in the previous month, while the capital adequacy ratio(CAR) was registered at 11.46 per cent, which is above the stipulated norm of nine per cent,'' the CMD informed.

During the past one year, the bank had opened 53 more branches nationwide raising its total number of branches to 2,187.

UNI SB ADG DB1757

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