Allahabad Bank, on Thursday, reported a 17.8 per cent increase in its net profit at Rs.276 crore during the second quarter, aided mainly by a sharp rise in other income.
Bank CMD Subhalakhsmi Panse said the bank’s total business during the period under review increased by 14.7 per cent although net interest margin dipped slightly to 2.75 per cent from 2.80 per cent a year ago.
There were fresh additions to its non-performing assets, but for the first time additions were showing a decline. Total recovery stood at Rs.3410 crore. Fresh additions were Rs.1,199 crore at September-end compared to Rs.1,694 crore at June-end. The ratio of net NPAs to net advances at 3.83 per cent during the period under review was lower than the same quarter in the previous year.
She said that the bank expected Rs.400 crore capital infusion by the government besides Rs.330 crore from the QIB route. However, this might spill onto the next fiscal, she said.