Allahabad Bank improves its performance under all parameters

Allahabad Bank has put up a substantially improved performance during the third quarter of the current financial year. For the third successive quarter the Bank has shown more than 100% growth over the corresponding quarter in the last year. The performance highlights for the nine-month period from April to December 2003 are presented below:

• Net profit increased by 115% during the quarter, thus showing a growth of 119.70% over the corresponding nine-month period last year.

• Operating Profit of the Bank increased by 41.88% over the same period previous year.

• Net NPA reduced to 4.17% as on 31.12.2003 from 8.28% as on 31.12.2002, which compares favourably with Industry average.

• Return on Assets (ROA) improved to 1.02% from 0.54%. this is also in line with industry.

• Return on Net Worth improved to 31.06% from 18.09% during the quarter

• Return on Equity increased to 93.16% during April-December 2003 from 56.37% during April-December 2002.

• EPS increased to Rs. 9.32 (annualised) from Rs. 5.64

• Spread as % to Average Working Funds improved to 3.39% from 3.08%

• Cost of Deposits reduced to 5.80% from 6.67% in the same period previous year

• Operating Cost to Average Working Funds declined to 2.39% from 2.66% during the corresponding period last year

OPERATING RESULTS

PROFITABILITY

• Operating Profit of the Bank during April-December 2003 increased to Rs.556.08 crores from Rs.391.94 crores during April-December 2002.

• Operating Profit of the Bank during the quarter ended December 2003 increased to Rs.235.42 crores from Rs.177.92 crores during the quarter ended December 2002.

• Net Profit of the Bank during April-December 2003 increased to Rs.242.24 crores from Rs.110.26 crores during the corresponding period last year, registering a growth of 119.70%.

• Net Profit of the Bank during the quarter ended December 2003 increased to Rs.98.36 crores from Rs.45.75 crores during the corresponding quarter last year, registering a growth of 115%.

• Spread (Interest Earned minus Interest Expended) increased to Rs.791.47 crores during nine-month period ended December 2003 from Rs.728.76 crores in the corresponding period last year.

• Spread as % to Average Working funds increased to 3.39% during April-December 2003 from 3.08% during April-December 2002, which is very favourable.

EFFICIENCY RATIOS

• Cost of Deposits declined to 5.80% during April-December 2003 from 6.67% in the corresponding period last year.

• Operating Cost to Average Working funds declined to 2.39% during April-December 2003 from 2.66% during April-December 2002.

• Return on Assets improved to 1.02% during April-December 2003 from 0.54% during April-December 2002.

• Return on Net Worth improved to 31.06% from 18.09% during this period.

• Return on Equity increased to 93.16% during April-December 2003 from 56.37% during April-December 2002.

SHAREHOLDERS VALUE ENHANCED

• Earning Per Share (EPS) (annualised) increased to Rs.9.32 at December-end 2003 from Rs.5.64 at December-end 2002.

• Book Value per share improves to Rs.39.59 from Rs.34.90 during this period.

BUSINESS GROWTH

(Amount in Rs. Crores)

• The Business of the Bank increased to Rs.42,782 crores as at December-end 2003 from Rs.37413 crores as at December-end 2002, registering a growth of Rs.3832 crores during April-December 2003 as compared to the growth of Rs.3432 crores during April-December 2002.

• Deposits of the Bank stood at Rs.28107 crores as on 31.12.2003 as against Rs.24753 crore as on 30.12.2002, registering a growth of Rs.2644 crores or 10.38% during April-December 2003 as compared to the growth of Rs.2087 crores or 9.21% during the corresponding period last year.

• Advances increased to Rs.14675 crore as on 31.12 2003 as against Rs.12660 crore as on 31.12.2002, recording a growth of Rs.1188 crores during April-December 2003.

• Non-food credit increased to Rs.13839 crores as on 31.12.2003 from Rs.11384 crores as on 31.12.2002, registering a growth of Rs.1302 crores during April-December 2003.

• Gross Investments of the Bank increased to Rs.14825 crores as on 31.12.2003 from Rs.11959 crores as on 31.12.2002, showing a growth of Rs.2349 crores or 18.83% during April-December 2003 as against the growth of Rs.1492 crores or 14.26% during April-December 2002.

• Priority Sector Advances increased to Rs.6472 crores as at December-end 2003, which is 44.52% of net adjusted credit from Rs.5312 crores as at December-end 2002, which was 42.5% of net adjusted credit.

• Agricultural Advances stood at Rs.2511 crores as at December-end 2003, forming 17.27% of net adjusted credit.

RETAIL CREDIT

• During the nine month period the Bank increased its retail lending portfolio under Housing, Personal, Car and Consumer loans by Rs. 1150 crores as compared to Rs. 966 crores in the corresponding period last year. The outstanding under retail lending schemes as above at over Rs. 2650 crore as on 31.12.2003 accounts for more than 19% of non-food credit of the Bank. The 257 Retail Banking Boutiques continued to spearhead the retail lending of the Bank.

NPA MANAGEMENT

• Net NPA ratio declined to 4.17% as at December-end 2003 from 8.28% as at December-end 2002. Gross NPA declined to 9.94% from 14.65% during this period.

• Provision coverage ratio went up to 60.34% as at December-end 2003 from 47.21% as at December-end 2002.

BRANCH NETWORK

• The Bank has 1931 branches as on 31.12.2003, of which 959 Rural, 322 Semi-Urban, 380 Urban and 270 Metropolitan areas. The Bank has also 140 Extension Counters spread all over India to cater the services to 1.4% of our country’s population.

TECHNOLOGY DRIVE

• The Bank has a comprehensive technology plan and is continuously implementing the technology initiatives to become a technology driven Bank in near future.

• As at December-end 2003, the Bank has computerised 934 branches and extension counters. These computerised branches covered 76.93% of the Business as on 31.12.2003. The Bank has also set up 79 ATMs across the country.

• To improve the customer service, the Bank has introduced tele-banking facility at 13 branches.

• The Bank has initiated the process for upgradation of MIS through centralised data warehousing and data mining through Centralised Banking Solution (CBS).