Allahabad Bank reported a 4.6 per cent increase in net profit to ₹325 crore for the quarter ending December 2013, compared to the same period last year.
While net interest margin (NIM) remained flat at 2.75 per cent, a 59 per cent jump in ‘other income’ at ₹542 crore, due to “recoveries in written-off accounts”, contributed to profit growth.
According to the bank’s Chairperson and Managing Director Shubhalakshmi Panse, profits were subdued on account of higher provisioning for NPAs, possible wage revision and mark-to-market losses.
Provisions and contingencies rose 29 per cent to ₹557 crore. The provision coverage ratio was 42.93 per cent.
During the period, gross NPAs rose 256 basis points to 5.47 per cent (from 2.91 per cent) of total advances. Net NPAs stood at 4.19 per cent.
In absolute terms, gross NPAs jumped 113 per cent on a yearly basis to ₹7,512 crore, while net NPAs rose 128 per cent to ₹5,651 crore.
Credit growth “Despite better recoveries, gross and net NPA ratios are higher because of the muted credit growth during the quarter,” Panse added.
The restructured assets portfolio of the bank stood at ₹12,624 crore as on December 31 as against ₹13,007 crore, a year ago.
Its net interest income, or the difference between interest income and interest expense, remained almost flat at ₹1,338 crore compared to ₹1,331 crore, a year ago.
The Allahabad Bank stock closed at ₹79.50, down 8.52 per cent, on the BSE, on Monday.