Net profit of public sector lender Allahabad Bank halved to nearly 164 crore for the third quarter (October-December) of this fiscal. It had reported a net profit of 325 crore during the corresponding quarter last year.
A slow growth in total income, operating profit along with increase in provisioning and tax expenses impacted the bottomline.
Operating profit saw a mere six per cent growth, while total income during the period grew 1.5 per cent to Rs 5,387 crore.
Provisions for bad loans increased by nearly 15.6 percent year-on-year to Rs 644 crore in the quarter ended December 2014. It stood at Rs 557 crore during the year-ago period.
Interest earned during the quarter under review stood at Rs 4,941 crore, a near 4 per cent rise, compared with Rs 4,764 crore earned during the year-ago-period.
However, other income (non-interest income) declined by nearly 17.7 per cent to Rs 446 crore from Rs 542 crore.
Asset quality
Asset quality of the Kolkata-headquartered bank remained stable.
However, gross non-performing assets (NPA) stood at 5.46 per cent (Rs 8,012.42 crore) in Q3 of FY15. In the year-ago-period, it remained flat at 5.47 per cent.
Net NPAs, however, declined by 30 basis points year-on-year to 3.89 per cent in the third quarter of the current financial year 2014-15.
Capital adequacy ratio (as per Basel-III norms) of the bank was 10.02 per cent in Q3FY15 against 10.46 percent in the year-ago period.