Allahabad Bank unveiled the financial results for first quarter of FY 12, net profit up 20.45 per cent

On 22nd July 2011, Allahabad Bank has announced its financial results for the first quarter of current financial year. The bank reported a 20.45% hike in its net profit from Rs. 347.14 crore of quarter ended June 30, 2010 to Rs. 418.13 crore of quarter ended June 30, 2011, The interest income of the bank has increased from Rs. 2,403.12 crore in Q1 FY11 to Rs. 3,549.84 crore in Q1 FY12, reflecting a growth of 47.72%, however other income of the company has decreased by 4.23% to Rs. 285.93 crore in quarter ended June 30, 2011 from Rs. 298.56 crore in quarter ended June 30, 2010.

On expenses front, Interest expenses of the bank stood at Rs. 2,374.29 crore increased by 52.91% from Rs. 1,552.78 crore year over year. Apart from it, operating expenses of the bank has also increased to Rs. 571.86 crore in quarter ended June 30, 2011 from Rs. 444.32 crore in quarter ended June 30, 2010. In spite of surge in expenses of the bank, bank still reported the 20.45% hike in net profit. It is due to because net interest income of the bank has increased by 38.24% year over year to Rs. 1,175.55 crore from Rs. 850.34 crore in Q1 FY11. The reduction in Tax expenses also led to increase in net profit. The tax expenses of the bank have decreased to Rs. 151.82 crore from Rs. 206.39 crore, year over year.

The bank has four main segments Treasury, Retail Banking and Corporate and wholesale banking and other banking operations. All four segments have 22.93%, 28.04%, 47.64% and 1.39% contribution in total revenue. Retail banking segment has highest contribution among three segments in profit before tax. The segment has contributed 49.93% to the net profit, while Corporate and wholesale banking segment has contribution of 37.19% in PBT.

The bank has increased its Provisions for contingencies from Rs. 151.05 crore in Q1 FY11 to Rs. 319.67 in Q1 FY12 crore, however the net NPAs of the bank has increased to Rs. 588.59 crore in quarter ended June 30, 2011 from Rs. 308.42 crore in quarter ended June 30 2010. The increment in provisions by the bank shows the bank's commitment for asset quality.