Public sector lender Allahabad Bank on Wednesday reported over 30% y-o-y jump in net profit to Rs 146.86 crore in the June quarter against Rs 112.72 crore in the same period last year on the back of lower employee cost and tax expenses.
The operating profit rose 1.8% y-o-y to Rs 1,241.50 crore and the total income was down 2% to Rs 5,396.44 crore. Net interest income (NII) de-grew 1.4% to Rs 1,587.11 crore, while other income registered 2% y-o-y growth at Rs 478.45 crore, the bank said in a BSE filing. In the April-June period, the bank’s employee cost and tax expenses fell y-o-y. While employee cost fell 13% y-o-y to Rs 472.29 crore, tax expenses decreased 6% to Rs 239.85 crore in the quarter.
Allahabad Bank made no fresh provisions for wage revision in the June quarter, which led to a fall in employee cost. During the corresponding quarter previous year provision towards wage revision was Rs 96 crore. The provisions towards bad loans and contingencies rose to Rs 854.79 crore against Rs 851.94 crore in the year-ago period. The gross non-performing assets (NPA) in absolute terms rose from Rs 7,619.06 crore to Rs 7,987.44 crore.
Gross NPA as a percentage of total loans fell to 5.29% in the June quarter from 5.48% a year ago, while net NPA ratio also fell to 3.67% from 3.88%. Net interest margin stood at 2.91% as of June 30. The shares of Allahabad Bank ended 4.68% higher at Rs. 87.25 on BSE.