Allahabad Bank Rides Treasury Profit, Net Soars To Rs 166 Crore

Kolkata, May 17: | Updated: May 18 2003, 05:30am hrs
Allahabad Bank on Saturday reported a net profit of Rs 166 crore for the year to March 31, 2003, its highest-ever and an increase of 107 per cent on the previous years figure of Rs 80 crore.

Announcing the annual results, Allahabad Banks executive director, Mr KK Rai, said operating profit increased by 26 per cent to around Rs 516 crore from Rs 408 crore.

The Kolkata-based bank said interest income increased by 13 per cent to Rs 2,570 crore from Rs 2,273 crore, while other income soared by 36 per cent to Rs 524 crore with treasury operations accounting for a big chunk.

The treasury profit increased by 71 per cent to Rs 336 crore from Rs 196 crore, Mr Rai said. The profit from investment was Rs 337 crore as against Rs 140 crore during the previous fiscal.

Mr Rai said that the remarkable growth in treasury profit was one of the main reasons behind the doubling of the net profit.

The other major reasons were the reduction in operating expenses and cost of deposits, Mr Rai said. Allahabad Bank was able to bring down its cost of deposits to 6.7 per cent from the previous fiscals figure of 7.20 per cent.

Allahabad Bank, which made an maiden public issue during the year, has proposed a dividend of 10 per cent for its shareholders. The aggregate non-promoter shareholding is 28.84 per cent on a base of 10 crore shares.

On an annualised basis, the proposed dividend works out to 28 per cent as the shares were allotted in November 2002, but the dividend is being paid for the whole year and not on pro-rata basis, Mr Rai said.

The bank has also reported a sharp decline in its non-performing assets during the year. The net NPA as a percentage of net advances went down to 7.08 cent from 11.09 per cent in the previous year.