Allahabad Bank post 23% net growth with cash recovery

Allahabad Bank reported a more than expected 23% net profit growth due to a Rs 120-crore cash recovery.

This happened as the bank's net interest margin fell by 23 basis points and asset quality deteriorated.

Its NIM for the quarter was 3.17% amid intense pressure on cost of deposits while the NIM was 3.40% for the June quarter in 2011.

The bank wants to maintain the margin above 3% with a focus on retail and SME loans that yield more than large corporate loans.

"We don't want to lend at higher rates and create bad loans," bank chairman and managing director JP Dua said although asset quality dipped despite restructuring of Rs 4,770-crore worth of loans. A banking analyst said the stress on Allahabad Bank's asset quality may re-emerge as the different sectors are facing strain.

The bank grew its loan book by a modest 12% during the first quarter as the slowing economy has shrunk lending opportunity. Dua said expects things to improve hereon and the bank targets to grow advances by 20-21% for the fiscal.

For more.

Also Read

VPBank’s asset quality at risk amidst housing slowdown

Thailand’s Kiatnakin Phatra Bank’s loan portfolio to benefit from rising car prices

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit