Riding on the back of higher interest earnings, Allahabad Bank registered 55 per cent growth in net profit. Profits increased to Rs 400 crore for the quarter ended March 31 compared with Rs 258 crore during the corresponding period last year.
Net interest income grew by 12 per cent to Rs 1,288 crore.
On a sequential basis, however, net profit dropped by 29 per cent from Rs 560 crore during the third quarter ended December 31, 2011.
The bank has proposed a dividend of 60 per cent for 2011-12, which means Rs 6 a share of face value Rs 10.
Even while the slippages were higher at Rs 963 crore (Rs 812 crore) during the quarter under review, the provisions towards bad loans came down to Rs 454 crore (Rs 466 crore).
According to Mr J.P. Dua, Chairman and Managing Director, major slippages came from the agriculture and small and medium enterprises sector. “The slippages from SME were close to Rs 400 crore and that from agriculture was Rs 276 crore during the last quarter,” he said.
Percentage of gross non-performing assets to advances went up to 1.83 per cent (1.74 per cent), while net NPAs increased to 0.98 per cent (0.79 per cent).
Net profit for the year ended March 31, 2012, grew by 31 per cent to Rs 1,867crore.
Advances grew by 19 per cent to Rs 1, 12,250 crore, while deposits increased by 21 per cent to Rs 1, 59,593 crore.
The bank would aim to achieve a total business of Rs 3,20,000 crore by next year. The bank would also recruit 1,600 probationary officers and 350 specialist officers during this fiscal, he said.