Kolkata:
Allahabad
Bank doubled its net profit to Rs 80.21 crore in 2001-02
from Rs 39.91 crore in 2000-01. During the same period,
the operating profit at Rs 407.98 crore (Rs 266 crore)
showed a growth of over 53 per cent.
Allahabad Bank
chairman and managing director Dr B Samal attributes the
improvement to jump in trading profits to Rs 190 crore
(Rs 55 crore). Given the market situation, perhaps we
could have earned more on this score, but we deliberately
decided to take a cautious approach.
The interest
earned on advances at Rs 1,117.87 crore (Rs 1,064.04 crore)
showed a growth of a little more than 5 per cent as compared
to 20.3 per cent in the year before that. But the interest
earned on investments at Rs 1,054.28 crore (Rs 934.67
crore) showed a jump of 12.8 per cent (3.7 per cent).
The fee-based income, however, remained stagnant at around
Rs 143 crore for the past two and half years, says Samal.
While the average yields
on advances and investments dropped to 10.63 per cent (11.31 per
cent) and 10.59 per cent (11.08 per cent), respectively, the
average cost of funds also dropped to 7.24 per cent (7.51 per
cent).
The
bank has proposed to bring down the average cost of deposits to 7
per cent or less in the current year from 7.20 per cent in the
year under review. The capital adequacy ratio improved to 10.62
per cent (10.5 per cent) and the ratio of net non-performing
assets to advances dropped to 10.57 per cent (11.23 per cent).
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