Calcutta, Jan. 31: State-owned Allahabad Bank has posted a 44.5 per cent decline in net profit for the third quarter ended December because of higher provisioning for bad loans and an increase in operational expenses.
Net profit stood at Rs 310.83 crore against Rs 560.43 crore in the same period a year ago. Total income rose to Rs 4,785.34 crore from Rs 4,260.28 crore in the year-ago period.
However, operating expenses grew to Rs 810.86 crore from Rs 698.95 crore and provisioning increased to Rs 432.43 crore from Rs 421.24 crore, which dragged down the bottomline.
Net non-performing assets rose to 2.06 per cent from 0.79 per cent in October-December 2011. In value terms, net NPAs rose to Rs 2,477.50 crore from Rs 795.97 crore a year earlier.
According to chairman and managing director Subhalakshmi Panse, higher provisioning on account of NPAs, an increase in provisioning of restructured standard assets and employee wage revision have increased the total provisioning. "Total provisioning during the quarter was Rs 549 crore," she said.
Loans to sectors such as power, steel, textiles and food processing were restructured.
Net interest margin (NIM) during the quarter stood at 3.02 per cent. The bank gave a NIM guidance of nearly 3 per cent for March 31, 2013.
Shares of Allahabad Bank fell 2.15 per cent to Rs 163.50 on the BSE today.
Tata Group firm Tata Global Beverages today posted a 25.28 per cent rise in consolidated net profit at Rs 80.26 crore for the quarter ended December on account of robust sales in tea and coffee.
Net profit stood at Rs 64.06 crore in the same period of the previous fiscal.
Consolidated net sales stood at Rs 1,901.99 crore compared with Rs 1,793.20 crore in the year-ago period.