Allahabad Bank net profit doubles at Rs 70 crore in Q2

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Gross NPAs' ratio fell to 9.83 per cent from 9.97 per cent in the last quarter, while the net bad loan ratio decreased relative to the previous quarter to 5.43 per cent from 5.97 per cent. The bank's asset quality, however, improved during the July-September quarter as fresh slippages declined by more than half.

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. Also, the bank said that it has made use of exceptional earnings from sale of shares of its subsidiary SBI Life Insurance through an IPO to make accelerated provisions for bad loans.

At 2.10 pm local time, the shares were up 6.45 per cent at Rs 334 on the BSE.

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The Rajnish Kumar led State Bank of India (SBI) on Friday reported a 38 per cent drop in net profit for the second quarter ending September at Rs 1,581 crore due to higher provisions for bad loans. The country's largest lender's consolidated net profit, however, saw a mutli-fold increase at Rs 1,840.43 crore from Rs 20.70 crore over the previous year, thanks to stake dilution in its insurance arm.

Income from non core business helped the bank making higher profits despite higher provisions and call fall in net interest margin to 2.37 per cent from 2.67 per cent a year back. GNPA stood at Rs 1,05,782 crore at the end of Q2 FY17. As a percentage of total advances, net NPAs declined 54 basis points sequentially to 5.43 per cent. Retail advances grew by just over 13 per cent from Rs 4.47 lakh crore to Rs 5.05 lakh crore as of September 2017. Kumar said with global reporting norms on the anvil, the bank was making provisions closer to expected losses (on bad loans) than actual loans.

Net profit rose to 1.79 billion rupees ($27.53 million) in the quarter ended September 30, from 1.27 billion rupees a year earlier, the Mumbai-based bank said on Friday.

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