Allahabad Bank net profit up 8% in Q2

Kolkata Nov 10 (IANS) State-run Allahabad Bank on Friday reported close to 8 per cent growth in its net profit to Rs 70.20 crore for the quarter ended September 30 as compared to Rs 65.03 crore for the year-ago period.

The bank said that in order to boost its capital adequacy the lender may raise around Rs 1 000 crore through QIP issue within the current fiscal. The growth in bank s net profit for the second quarter of the current fiscal was aided by a healthy growth in operating profit along with fall in the bank cost of deposits.

Operating profit for the lender surged by 26.03 per cent to Rs 1 223 crore in the second quarter of the current fiscal as compared to Rs 970 crore in the year-ago period.

Its cost of deposit reduced to 5.46 per cent in the quarter under review as against 6.02 per cent in the same quarter last year. The bank s asset quality however deteriorated as the amount of gross non-performing asset rose to Rs 21 454.27 crore during the period under review from Rs 19 094.53 crore in the same quarter last fiscal according to a regulatory filing.

"We are focusing on recovery of bad loans. During the quarter fresh slippage to NPA category was around Rs 2 000 crore " the lender s Managing Director and CEO Usha Ananthasubramanian told reporters here.

According to another bank official apart from the Reserve Bank of India s mentioned accounts the lender itself has identified 20 accounts for referring to the National Company Law Tribunal for corporate insolvency resolution.

In these 20 accounts it has a total exposure of around Rs 908 crore he added.

-- IANS
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