Allahabad Bank has reported a 53.5% fall in its net profit to Rs 93.96 crore for the quarter ended June 30, 2008, compared with Rs 200.40 crore during the corresponding period of the previous fiscal.
The bank has provided mark-to-market depreciation of Rs 264.08 crore for the quarter as yields on government securities have crossed 9.5%, bank officials said.
?The current scenario in the equity market, mark-to-market provisions the bank has to make and yields on government securities crossing 9.5% have contributed to the decrease in net profit,? the bank?s executive director KK Agarwal said.
?We enjoyed a write-back of depreciation amounting to Rs 34.60 crore during the corresponding quarter last year,? he said. According to him, the total impact on the profit of the bank is to the tune of Rs 298.68 crore.
The net interest margin during the quarter to June 30, 2008, was maintained at 2.75%. ?We hope to maintain current growth levels in the current fiscal,? bank?s executive director JP Dua said. Allahabad Bank?s capital adequacy ratio stood at 11.68% for the quarter. With the government having a 55% share in the bank, it is left with 4% room to go for another public issue, Agarwal said.
The bank?s gross credit during the quarter touched Rs 50,244 crore, an increase of 23.88% over the same period of the previous year. Deposits rose by 16.54% to Rs 73,207 crore.
The bank, which is awaiting the Centre?s approval for the rights issue, has a headroom of raising Rs 2076 crore as tier II capital. ?By perpetual bond we can go up to around Rs 662 crore,? Agarwal said. ?However, there is no immediate need to raise capital.?
Allahabad Bank has waived Rs 1041.30 crore of farmers? loan under the Centre?s debt waiver scheme.
