Allahabad Bank today reported over 30 per cent rise in net profit at Rs 146.86 crore during the first quarter ended June 30, against 112.72 crore in the same quarter of the previous fiscal.
The bank’s profit witnessed significant increase as the ratio of bad loans improved , and also because it did not make any provision towards wage revision during the quarter.
However, total income during the first quarter of the current fiscal fell to Rs 5,396.44 crore from Rs 5,518 crore in the corresponding quarter of the previous fiscal, it said in a filing on BSE.
On asset quality, the gross non-performing assets (NPAs) were trimmed to 5.29 per cent of gross advances in the first quarter this fiscal as against 5.48 per cent in the same quarter of 2014-15 fiscal.
Net NPAs were also cut to 3.67 per cent, from 3.88 per cent of net advances in the year-ago period.
The provision towards bad loans and contingencies, however rose to Rs 854.79 crore from Rs 851.94 crore in the year-ago period.
Also, the bank was able to cut its tax expenses to Rs 239.85 crore during June quarter of this fiscal from Rs 254.87 crore during the same period of the previous fiscal.
It had made a total provision of Rs 743.98 crore up to March 31, 2015 towards arrears for wage revision, which is effective from November 1, 2012.
“…the total amount provided up to March 31, 2015 is sufficient to meet the arrear requirement. As such, no fresh provision has been made during the current quarter,” it said.
Allahabad Bank scrips shot up 4.74 per cent at Rs 87.30 per piece on BSE post the earnings announcement.