allahabad bank Allahabad Bank has reported decent results for the quarter ended June 11 with 38% increase in NII at Rs 1175.55 crore and 20% increase in Net Profit at Rs 418.13 crore. Despite increase in the cost of funds, the bank has managed to improve NIM to 3.40% in quarter under review against 3.38% a quarter ago and 3.10% a year ago. However, drastic fall in trading profits by 79% and sharp increase in provisions on investments and bad debts has curtailed the growth in PBT to meager 3% at Rs 569.95 crore. Thank to whooping 10.6% dip in the effective tax rate, Net Profit was up by modest 20% on y-o-y basis. Although the margins improved declining asset quality is a concern for the bank. Allahabad Bank has increased base rate and BPLR by 25 bps each to 10.25% and 14.50% respectively w.e.f 15 July 11.Asset Quality: The Gross NPA of the bank has inched up 41% y-o-y and slipped 3% q-o-q to Rs 1604.37 crore for the quarter ended June 11.
During the quarter, the bank has cash recovery of Rs 98.83 crore, up gradation of Rs 101.90 crore and slippages of Rs 118.24 crore. The % GNPA stood at 1.62% against 1.5% a year ago and 1.74% a quarter ago. Slippage ratio stood at 0.65% at end of June 11 against 0.66% in the corresponding previous year and 2.21% at end of March 11.Net NPA has surged up by 90% y-o-y and 20% q-o-q to Rs 588.59 crore at end of June 11. The % NNPA stood at 0.6% against 0.41% a year ago and 0.79% a quarter ago. Provision coverage ratio increased to 79.90% as on June 11 compared to 75.67% as at end of March 11.The outstanding restructured assets at end of June 11 stood at Rs 3059 crore, of which Rs 312 crore turned to NPA's.
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