Allahabad Bank net profit dips 45 percent

Last Updated: Thu, Jan 31, 2013 10:30 hrs

Kolkata, Jan 31 (IANS) State-run Allahabad Bank Thursday reported a 44.46 percent dip in net profit to Rs.311 crore for the quarter ended Dec 31, 2012.

The bank had made a net profit of Rs.560 crore in the corresponding period of the previous year.

The Kolkata-headquarted bank said higher provisioning for bad assets, additional provisioning for standard restructuring, and provisioning for wage revision have led to the skid in the third quarter net profit.

"There have been a couple of reasons for higher provision as far as NPA provisioning is concerned. Second has been RBI has recently mandated higher provisioning for standard restructuring for which we have to set aside an additional Rs.93 crore in the third quarter of this (2012-13) fiscal," bank's chairperson and managing director Subhalakshmi Panse told reporters.

Panse said the bank had made a total provisioning of Rs.549 crore for the third quarter of the ongoing fiscal.

She said for bad and doubtful debts, the lender had made a provision of Rs.343 crore.

According to her, the bank has restructured assets of Rs.5,600 crore in the power sector - which is the highest the lender restructured for the industry - followed by textile, steel and food processing.

Net NPA of the bank stood at 2.06 percent for the quarter ended Dec last year as against 0.79 percent in the year-ago period.

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