Allahabad Bank's Q3 net up by 34 percent

Public sector lender Allahabad Bank Monday reported a net profit of Rs.5.60 billion for the quarter ending Dec 31, 2011 against Rs.4.2 billion for the corresponding period of the previous fiscal, registering a hike of over 34 percent.

The net interest income of the bank during the period has registered a steep rise of 31 percent to Rs.13.8 billion for the period under review against Rs.10.52 billion for the corresponding period of the previous fiscal.

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Non-interest income of the Kolkata-headquartered bank has also increased to Rs.3.48 billion during the quarter against Rs.2.58 billion for the like period last fiscal.

"Our growth has come mainly from the core business and fee-based income which has increased by almost 22 percent," Allahabad Bank chairman and managing director J.P. Dua told reporters here after announcing the third-quarter results.

Gross non-performing assets (NPA) of the bank during the third quarter of the current fiscal rose at 1.86 percent against 1.77 percent, while its net NPA stood at 0.79 percent against 0.59 percent.

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Allahabad Bank executive director D.K. Sarkar said the bank's NPA was high in agriculture and SME sectors.

"NPA position of the bank will improve in the last quarter of the fiscal," Sarkar added.