Allahabad Bank opens
Depository Participant Services in Varanasi
Shri O.N. Singh, Chairman & Managing Director of Allahabad Bank inaugurated
full-fledged Depository Participant Services in Varanasi today on 29th January
2004. The Depository Participant will cater to the varied investment needs of the
Bank’s customers as well general public at large in the whole region. The Depository
Participant at Varanasi will function from the International Branch, Varanasi, which is a
totally computerised branch.
An investor, instead of physically holding his investment in shares, debentures, bonds
etc., will now be able to keep the same in electronic form in the Depository Participant
to make the investment transactions hassle free, more convenient and faster. The
Depository Participant opened by Allahabad Bank in Varanasi shall benefit the investors in
many ways.
- Instant transfer of shares – no delays / Instant liquidity
- No stamp cost at the time of transfer
- No loss of certificates / No soiled, mutilated or forged documents
- No problem of odd lots, even one share is tradable
- Direct credit of public/bonus/right issues
- Freeze/Defreeze/Locking Facilities
- Pledge/Hypothecation facilities available
Allahabad Bank was founded in the holy city of Allahabad in the year 1865 and thus the
Bank has its origin from this part of the country. It is significant to add here that
Allahabad Bank came out with its maiden IPO (Initial Public Offering) in the year 2002
when the equity market conditions were depressed. The public issue was oversubscribed 3.55
times due to overwhelming response received from the retail investors, a large number of
whom were from this region also. Still there are about 2100 investors in and around
Varanasi holding Allahabad Bank shares in physical form as compared to over 500 investors
who have since converted their shares into electronic form. Therefore, there was a
long-standing demand for Depository Participant services from the investors in Allahabad
Bank IPO in this area and Allahabad Bank has responded to the demand by opening Depository
services at Varanasi. The Depository Participant services shall be a boon to the investing
public of Varanasi and adjoining areas in view of the booming equity market conditions.
It is pertinent to add here that the Allahabad Bank opened its first Depository
Participant at Kolkata in 1999, which is doing a good job with over 7000 active investors.
The 2nd Depository Participant is now being opened at Varanasi, to be soon
followed by two more Depository Participants at Lucknow & Kanpur to give investors of
U.P service at their doorstep.
Allahabad Bank is marching ahead with all-round improvements under major business
parameters. For the nine-month period ended on December 2003, the Bank has shown
significantly improved performance as under: -
PROFITABILITY & BUSINESS GROWTH
- 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%.
- Operating Profit of the Bank during April-December 2003 increased to Rs.556.08 crores
from Rs.391.94 crores during April-December 2002, registering a growth of 41.87%.
- 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%.
- 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.
- 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.
- Retail Loan portfolio under Housing, Personal, Car and Consumer loans increased by more
than Rs. 1150 crores in the nine-month period. The outstanding under retail lending
schemes as above at over Rs. 2650 crore as on 31.12.2003 accounted 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.
- 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 improved to Rs.39.59 from Rs.34.90 during this period.
- 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.
In view of satisfactory performance as stated
above, Allahabad Bank has declared 10% Interim Dividend to the investors.
ANYWHERE-ANYTIME BANKING
- The Bank has initiated the process for upgradation of MIS through centralised data
warehousing and data mining through Centralised Banking Solution (CBS). This will enable
the customers to access their accounts from any place in the country at any point of time.
ONE-STOP FINANCIAL SOLUTION
- Allahabad Bank already has strong presence in Bancassurance in both life and non-life
(general) insurance sectors through strategic tie-ups with ICICI-Prudential Life Insurance
Co. Ltd. and National Insurance Co. Ltd., respectively. To provide its customers a
complete basket of financial products, the Bank has firmed up its plans for selling /
distribution of Mutual Fund products from the branches of the Bank in tie-up with UTI
Asset management Co. (P) Ltd.
REAFFIRMED COMMITMENT FOR UPLIFTMENT OF RURAL
ECONOMYAllahabad Bank is committed to give more thrust towards upliftment of rural
economy. The Bank will continue to leverage its strength in rural & semi-urban areas
and will come out with more innovative products to suit varied financial needs of
Agriculture, SSI, Small & Medium Enterprises (SME) and other drivers of rural economy.
Press Corner
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