CONSISTENT GROWTH ALL THE WAY

ALLAHABAD BANK BUSINESS CROSSES Rs.184000 CRORE

• Allahabad Bank records 19.29 % growth in Q1 Operating Profit
• Net Profit in Q1 up by 14.62 %
• Net Interest Income up by 35.18 %
• Net Interest Margin up at 3.10 %
• Earnings per Share (EPS) increased to Rs. 7.77
  

• The Business of the Bank stood at Rs.184039 crore as on 30.06.2010 as against Rs.150403 crore in the previous year showing a Year-on-Year growth of 22.36 %.
• Deposit of the Bank went up to Rs.108320 crore as on 30.06.2010 from Rs.89401 crore as on 30.06.2009 and Rs.106056 crore as on 31.3.2010.
• Year-on-Year basis, Total Deposits grew by 21.16 %.
• Gross Credit was Rs.75718 crore as on 30.06.2010 as against Rs.61002 crore as on 30.06.2009 and Rs.72437 crore as on 31.3.2010.
• Year-on-Year basis, the Gross Credit increased by 24.12 %.
• Credit Deposit Ratio increased to 70.30 % as at June-end 2010 against 69% corresponding previous year.
• Operating Profit increased from Rs.591 crore during April-June’09 to Rs.705 crore during April-June’10, registering a growth of 19.29 % during the period.
• Net Profit of the Bank was Rs.347 crore during April-June’10 as against Rs.303 crore in the corresponding period last year showing a YoY growth 14.62%.
• Gross NPA to Gross Advances further declined to 1.50 % as at June-end 2010 from 1.79% as at June-end 2009 and 1.69 % as at March-end 2010.
• Net NPA to Net Advances ratio stood at 0.41 % as at June-end 2010.
• Net Interest Margin (NIM) improved to 3.10 % for the quarter ended 30.06.2010 as against 3.00 % corresponding previous quarter.
• Non-Fund Non-Interest Income during Q1 of 2010-11 stood at Rs.299 crore.
• Operating Expenses to Average Working Funds reduced to 1.49 % during the quarter from 1.65% corresponding last year.

Shareholders’ Value:

• Earning per Share increased from Rs. 6.78 as on 30.06.09 to Rs.7.77 as on 30.06.2010.
• Return on Asset stood at 1.16 % as on 30.06.2010.
• Book Value per Share increased to Rs.159.02 as on June’10 from Rs.137.75 as on 30.06.2009.
• Capital Adequacy Ratio increased from 12.54 % as on 30.06.2009 to 13.55 % as on 30.06.2010 as against the stipulated norm of 9%.

New Initiatives:

• Bank added 30 more branches during June’10 quarter into the system taking the total to 2316 (excluding one at Hong Kong) of which 25 Branches have been upgraded from existing Extension Counters.
• Bank had 67 fresh Authorizations in hand, of which two Branches (Udupi Branch under ZO-Bangalore and Kharar Branch under ZO-Ludhiana) have since been opened on 19.07.2010.
• Bank has launched new Scheme under Priority Sector Credit “ Scheme for financing Doctors/Medical Practitioners for Clinics/Nursing Homes etc.” to promote financing to Doctors/Medical Practitioners for setting up of their Clinics/Nursing Homes.
• Bank has taken steps for achieving greater Financial Inclusions through implementation of IT-enabled Financial Inclusion by adopting Biometric Smart Card Solution through Business Correspondents. Bank has launched Pilot Projects in 4 of its Lead Districts.
• Bank has formulated a Special One Time Settlement (OTS) Scheme to provide an additional relief of 25% over & above 25% relief from the Government of India on the eligible amount to Other Farmers under Agriculture Debt Waiver and Debt Relief Scheme 2008.
• On-Line Fees Collection facility is made available to students of Chaudhary Charan Singh University, Meerut , Infotech Education Society (Bhopal), Bihar School Examination Board (Higher Secondary), Bihar School Examination Board (Senior Secondary) and IIITDM, Jabalpur through CBS Branches.
• Central Processing Hub (CPH) inaugurated in Bangalore on 04.06.2010. At present, CPH is handling Inward and Outward Clearing transactions of Branches of Bangalore City.
• Cash Management Services (CMS) made live with 1 Hub and 32 Spokes. Fast Remittance facility provided to clients by bulk RTGS/NEFT facility.
• At all the Bank’s CBS Branches, Fund Transfer facility extended through NEFT from 9.00 AM to 7.00 PM on all weekdays and from 9.00 AM to 1.00 PM on Saturdays to Customers.
• Facility for On-line payment of Direct Taxes (CBDT) & Indirect Taxes (CBEC) has also been provided through Internet Banking Channel for the Customers of Bank’s CBS Branches on 24 X 7 basis.
• Bank has launched New Retail Finance Scheme titled as “Housing Finance Scheme for NRI/PIOs” for granting Housing Finance to Non-Resident Indians /Persons of Indian Origin.
• Bank has launched another new Scheme named as “Premium Housing Finance Scheme for High Net-worth Individuals (HNIs)”.
• Bank finalized Tie-up with M/S Rasandik Engineering Industries India Ltd for financing their vehicles under “ AllBank Commercial Vehicle Finance” Scheme during the quarter.
• Facility of online application of Retail Loans through INTERNET at 27 Centres introduced.
• Under Retail Selling of Gold Coin Scheme under “AllBank Gold”, Bank sold 7444 Gold Coins weighing 54.674 Kgs.
• Under Tie-Up with Life Insurance Corporation of India for selling of Life Policies, Bank has mobilized Premium amounting to Rs. 21.08 crore during the April-June, 2010 quarter registering a YoY growth of 76.88%.

Social Banking:

• Priority Sector Credit grew from Rs 20855 crore as on 30.06.2009 to Rs.24726 crore as on 30.06.2010 registering an absolute YoY growth of Rs.3871 crore (Growth-18.56%).
• The outstanding Agriculture Credit increased from Rs.9575 crore as on June-end 2009 to Rs.11598 crore as on June-end 2010 registering an absolute YoY growth of Rs. 2023 crore (Growth-21.13%).
• Credit to Micro and Small Enterprises (MSE) grew from Rs. 4885 crore as on June 2009 to Rs. 8532 crore as on June 2010 registering an absolute YoY growth of Rs. 3647 crore (74.66%).

Technology Initiatives:

• Bank has computerized all its 2316 Branches in India and 69 Extension Counters and 41 Currency Chests and Field/ Zonal Offices covering 100% of Bank’s business.
• Bank has geared up CBS implementation and 1116 Branches/Offices covering 84.02% of the Bank’s business have already been brought under CBS platform.
• Hassle-free Internet Banking, SMS Banking, e-Payment of Taxes (Direct & Indirect) are now at the disposal of the Customers through CBS Branches at any place of the country convenient to customers. More than 28000 Customers are using Internet Banking delivery channel.
• Instant ATM-cum-Debit Card facility launched for Customers of all our CBS Branches. Bank has issued more than 7.01 lac ATM-cum-Debit Cards including 1.17 lac Instant ATM Cards to the Customers.
• RTGS/NEFT Fund Transfer facility implemented in all CBS Branches.
• On-Line fund transfer through RTGS/NEFT provided to our Internet Banking Customers.
• On-Line Payment Gateway Services launched by the Bank for its Customers to make Real Time Payments to 490 Merchants at the billers’ site with instant debit from their accounts.
• The Bank has tied-up with M/S UAE Exchange & Financial Services Ltd for Inward Money Transfer System through Xpress Money and MoneyGram Channels.

Retail Credit:

• Total disbursement under Retail Credit upto June’10 stood at Rs.671.83 crore as against Rs. 470.35 crore during corresponding period last year registering a YoY growth 42.69%
• Total outstanding under Retail Credit as on 30th June, 2010 was Rs. 10517.77 crore as against Rs. 8348.96 crore as in the corresponding quarter last year showing a YoY rise of 25.98% .
• Bank has dedicated delivery Channel for Retail Lending through its 27 Centralized Retail Banking Boutiques (CRBB) and 75 Retail Banking Boutiques (RBB) across the country. All other Branches are also authorized to sanction and disburse Retail Loans.
• Bank has set disbursement target of Rs. 5000.00 crore under Retail Credit, which will be 58.78% higher than the achievement for FY, 2009 -10.
• Bank would strive to achieve an outstanding level of Rs. 14000.00 crore in Retail Credit Segment by March, 2011 targeting a growth of 39% during the current Financial Year.  

Human Resource Development:

• During the quarter ending June 2010, Bank has imparted training to 2326 personnel (Officers-1863, Award Staff-362 and 101 Non-employees) through Bank’s own Internal Training Establishments.
• Bank organized a Special Training Programme for the Officials of the Central Bureau of Investigation (CBI) on Banking Operations at Bank’s Staff College, Kolkata during 17-21 May, 2010 in which 20 CBI Officials and 3 Enforcement Personnel participated.
• Special NCDO Training Programme was conducted by NSDL at Bank’s Staff College, Kolkata in which 12 Officers participated.
• Processes for recruitment of 990 Officers (Scale-I) and 990 Single Window operator ‘A’ (Clerical Cadre) are nearing completion. Meantime, 107 Agriculture Field Officers have been given appointment as on 30.06.2010.

Risk Management:

• As per RBI directive , Basel-II norms have been implemented in the Bank, with the undernoted Risk Management approaches :
  Standardised Approach -- for Credit Risk
  Standardised Approach (Duration based) -- for Market Risk
  Basic Indicator Approach -- for Operational Risk
• Market Discipline is observed in the Bank by publishing all the requisite disclosures in the Annual Report as well as on its Website.
• Migration to Advanced Approaches is under process for which implementation of MIS based on technology is going on in full swing.                                            

Future Plans:

• Bank has set a realistic target to achieve Rs. 2,20,000 crore Business within March,2011 and to convert all its Branches/Offices into CBS platform within December,2010.
• Bank has planned to install 100 ATMs more this fiscal, of which 25 will have BIOMETRIC features, to attract younger generations.
• Bank has planned to open a Foreign Branch in Dhaka, Bangladesh and to upgrade its Representative Office, at Shenzhen, China into a full-fledged Branch shortly, for which ground work is in progress.
• Bank will soon enter into a Tie-Up arrangement with “M/S URAL INDIA Ltd”, an Indian vehicle manufacturing Company of repute, to promote Bank’s vehicle finance under its “Commercial Vehicle Loan Scheme”.

Publicity Department,
Head Office, Kolkata
23rd July, 2010.