Calcutta, June 23: Allahabad Bank has recorded a 101 per cent increase in its net profit at Rs 129.21 crore in 1997-98, compared with Rs 64.30 crore in the previous fiscal. The operating profit for the period stood at Rs 227.49 crore, compared with Rs 184.26 crore in the previous fiscal. Taking a cue from the State Bank of India, Allahabad Bank has made 0.25 per cent provision for its standard assets. Allahabad Bank has marked to market 72.23 per cent of its investments in government and other approved securities, against 50 per cent in 1996-97 and the 60 per cent required by the Reserve Bank of India.Its net non-performing assets (NPAs) rose to 15.09 per cent (Rs 859 crore) from 14.80 per cent (Rs 722 crore) in the previous year, while the gross NPAs, at 23.18 per cent, increased from the previous year's 23.90 per cent.
Allahabad Bank chairman Harbhajan Singh told The Financial Express that the bank is awaiting the details of finance minister Yashwant Sinha's budget announcement that weaker bankswill be encouraged to set up asset-reconstruction companies.
Total income rose to Rs 1,624.83 crore in 1997-98 from Rs 1,459.18 crore in the previous year, with interest income accounting for Rs 1,404.53 crore (Rs 1,278.21 crore) and other income Rs 220.30 crore (Rs 180.96 crore). Total expenditure rose to Rs 1,397 crore from Rs 1,275 crore in 1996-97, showing a slower growth of nine per cent against the 12 per cent in 1996-97 over 1995-96. During 1997-98, the bank's yield on investments improved to 10.99 per cent from 10.79 per cent. The average cost of deposits fell to 7.95 per cent from 8.11 per cent, and cost of funds to 7.97 per cent from 8.15 per cent.
According to Singh, income from treasury operations had jumped to Rs 20 crore against Rs 3 crore in the previous year, contributing substantially to the Rs 39-crore increase in other income.
Singh said the bank's focus areas this year will be gold trading.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
