Allahabad Bank's Q1 net dips by 53 per cent

Kolkata, Jul 18 (UNI) The net profit of Allahabad Bank has dipped by 53 per cent at Rs. 93. 36 crore during the first quarter of this fiscal from Rs 200 crore in the corresponding period last year.

Announcing the financial results, Executive Director K K Agarwal told reporters today that the fall in profit was due to higher depreciation on Government securities, lagging forecasts.

He said the Bank provided market-to-market depreciation of Rs 264 crore for the June quarter as yields in government securities rose.

In the same quarter a year ago, the Bank had written back a depreciation of Rs 34.06 crore on Government securities, he said.

Mr Agarwal said the Bank's loans during the quarter increased by 23.88 per cent at Rs 50,244 crore, while deposits surged by 16.54 per cent to Rs 73,207 crore.

The net interest margin in the quarter was maintained at 2.75 per cent. '' We hope to maintain current growth levels in FY09, '' he said.

The Bank had written off farm loans worth Rs 1041 crore in accordance with the waiver scheme of the Centre, Mr Agarwal said.

To a question, Mr Agarwal said Allahabad Bank had headroom to raise Rs 2,076 crore in tier II segment and Rs 606.02 crore hrough perpetual bonds.

'' However, there is no immediate need to raise capital, '' he said.

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