Allahabad Bank - Press Corner








Feedback

Disclaimer

Sitemap

What's New

Allahabad Bank Declares Q3 (2008-09) Results

Allahabad Bank Net Interest Margin (NIM) surges to 3.24% from 2.59%.
Net Interest Income up by 45% in Allahabad Bank.
Allahabad Bank records 28% growth in Operating Profit.
Non Fund Non Interest Income registers 31% growth.
Allahabad Bank business reaches Rs.1,27,847 Crore.

Q3 - December’08 (3 months):

Operating Profit in Q3 increased to Rs.666.06 Crore from Rs.521.12 Crore in Q3 of 2007-08 recording a growth of 27.81%.
Net Interest Income showed a robust growth of 45% at Rs.604.13 Crore as against Rs.418.03 Crore of previous year.
Net Interest Margin in Q3 improved to 3.24% from 2.59% of Q3 in 2007-08 and 2.70% of Q2 in 2008-09.
Yield on Advances stood at 11.31% as against 10.87% of previous year [Q2-11.03%]
Cost of Deposits increased marginally to 6.69% from 6.55% as at December’07 [Q2–6.90%]
Net Profit stood at Rs.369.47 Crore [Previous Year- Rs.365.05 Crore] due to higher provisioning for tax amounting to Rs.193.61 Crore [Rs.31.06 Crore] and Rs.79 Crore for other provisions.
Yield on Investments improved to 7.63% from 7.48% of corresponding quarter of previous year.
Yield on funds crossed 10% mark [10.03% from 9.65%]
Cost of borrowings higher at 8.94% as against 7.19%
Rise in Cost of funds contained to 6.81% from 6.58%
Non Fund Non Interest Income during Q3 was Rs.117.82 Crore as against Rs.90.11 Crore previous year.

9 Months period ending 31.12.2008:

Operating Profit recorded a growth of 16% at Rs.1,287 Crore against Rs.1,109.54 Crore of previous year.
Net Interest Income improved by 24.64% at Rs.1566.16 Crore against Rs.1256.65 Crore of previous year.
Net Interest Margin increased to 2.85% from 2.72%.
Yield on Advances rose to 10.98% from 10.76%.
Cost of Deposits increased to 6.72% from 6.55%.
Net Profit stood at Rs.504.51 Crore as against Rs.805.23 Crore.
Yield on Investments stood at 7.64% from 7.86%.
Yield on funds improved to 9.82% from 9.71%.
Cost of borrowings up at 7.69% from 6.98%
Cost of funds up at 6.77% from 6.57%
Non Fund Non Interest Income increased to Rs.316.28 Crore from Rs.295.47 Crore.

Business:

The Business of the Bank stood at Rs.1,27,847 Crore as on 31.12.2008 as against Rs.1,13,835 Crore corresponding previous year registering a growth of 12.31% Year-on-Year.
Deposit of the Bank went up to Rs.75095 Crore as on 31.12.2008 from Rs.68,044 Crore as on 31.12.2007 and Rs.71,616 Crore as on 31.3.2008. Year-on-Year basis, Total Deposits grew by 10.36%.
Core Deposit of the Bank increased from Rs.48,704 Crore as on 31.12.07 to Rs.60,195 Crore as on 31.12.2008 thereby showing a growth of 23.59% Year-on-Year.
Deposits under High Cost/ Differential Rate have been reduced by Rs.4,440 Crore to Rs.14,900 Crore as on 31.12.08 from Rs.19,340 Crore as on 31.12.07.
Share of Deposits under Differential Rate to Total Deposits reduced to 19.84% as on 31.12.2008 from 28.42% for corresponding date last year.
Gross Credit was Rs.52,752 Crore as on 31.12.2008 as against Rs.45,791 Crore as on 31.12.2007 and Rs.50,312 Crore as on 31.3.2008.
Year-on-Year basis, the Gross Credit increased by 15.20 %.
Gross Credit to Total Deposit ratio stood at 70.25% as at December 2008 as against 67.29 % as on 31.12.2007.
Advances under Priority Sector increased from Rs.17,424 Crore as on 31.12.2007 to Rs.18,317 Crore as on 31.12.2008 registering a growth of Rs.893 Crore.
Agricultural Credit increased from Rs.7,846 Crore as on 31.12.2007 to Rs.8,636 Crore as on 31.12.2008 registering a growth of Rs.790 Crore (10.07%).
Credit to Micro and Small Enterprise increased from Rs.3,427 Crore as on 31.12.2007 to Rs.4,020 Crore as on 31.12.2008 registering a growth of Rs.593 Crore (17.30%).
Outstanding in Retail Credit was Rs.7,804 Crore as on 31.12.2008 as against Rs.7,233 Crore on 31.12.2007. Fresh disbursement of loan to the tune of Rs.1,019 Crore made during 9 months upto December’08 registering a growth of 25.35%.
Business per employee rose from Rs. 5.70 Crore as on 31.12.2007 to Rs.6.19 Crore as on 31.12.2008.
Business per branch improved from Rs.53.14 Crore as on 31.12.2007 to Rs.57.41 Crore during the period.

Asset Quality:

Gross NPA declined to 1.93% from 2.06% (Dec’07) and 2.00% at March’08.
Gross NPA stood at Rs.1,016 Crore.
Net NPA at 0.82% as against 0.67% in December’07 and 0.80% in March’08 [0.85% in Sept’08]. Ø Net NPA stood at Rs.429.20 Crore.

Shareholders’ Value:

Earning Per Share (EPS) improved to Rs.33.08 as at December’08 quarter against Rs.32.69 corresponding quarter previous year.
EPS stood at Rs.15.06 for the 9 months ended December’08 as against Rs.24.03 corresponding period previous year.
Return on Asset at 1.78% as at December’08 quarter against 1.93% corresponding quarter previous year.
Return on Asset stood at 0.81% for the 9 months ended December’08 against 1.50% corresponding period previous year.
Book Value per share rose to Rs.128.03 from Rs.117.71 as on 31.12.2007.
Capital Adequacy Ratio stood at 12.20% as at December end 2008 against the stipulated norm of 9%.

Technology:

CBS implementation in 601 Branches and 6 Zonal Offices covering 73 % of Bank’s business as on 31.12.2008. The Bank plans to reach 900 branches under CBS by March, 2009.
39 Network Aggregation Points (NAPs) for CBS have been set up across the country.
Cheque Truncation System successfully implemented in National Capital Region (New Delhi).
Other Bank ATM usage free for customers from 01.12.2008. The card holders of our Bank can now access ATMs of other Banks throughout the country without paying any service charge.

New Initiatives:

Online Payment Gateway Services launched for the customers of CBS branches.
The Bank has entered into the world of Net Banking and SMS banking.
Scheme for sale of Gold Coins and Bars will be launched in April, 2009.
Cash Management Services is being revamped with 25 spokes (distribution Channels) connected with a hub in Mumbai.
Bank has entered into a Corporate Agency Agreement with Universal Sompo General Insurance Company Limited for sale of General Insurance Products.
Business Process Re-engineering Cell has started functioning with a view to reap the benefits of Information Technology and streamline the System and Procedures to achieve the objectives of CBS platform.
Bank opened 72 branches during the year (April to December’08) taking total number of branches to 2227 (including one at Hong Kong).
Bank has 62 authorisations in hand for opening of Branches during the year.

Human Resources:

Total manpower strength of the Bank stood at 20,668 as on 31.12.2008 as against 19,979 corresponding date last year.
To meet the expansion requirement and need for specialized services, the Bank has already initiated process for recruitment of 1,000 Officers and 1,000 Clerical staff during the year 2009.
The Bank has changed the Organisational Structure with placement of 9 General Managers in the field to facilitate the Business growth at a faster pace.

Social Banking:

Multi pronged strategy put in place to accelerate flow of credit to Agriculture Sector specially to farmers whose debts have been waived under the Agriculture Debt Waiver and Debt Relief Scheme, 2008. Debts amounting to Rs.1,040.80 Crore have been waived in 3.98 lakh accounts of Small/ Marginal farmers under the Scheme upto December 2008.
Janashree Bima Yojana, a group insurance scheme to cover members of Women Self Help Groups (SHGs) Credit-linked to the Bank launched by the Bank. 15,813 members of Women SHGs have been enrolled upto December’08.
Bank has taken initiative for liberalized lending to Micro and Small Enterprise with flexible guidelines and Simplified Application Form, reduction in interest rates, concession to Women Entrepreneurs and collateral-free loans under CGTMSE.
Special package has also been offered on all new Housing Loans upto Rs.20 Lac with reduction in interest rates, reduced margin, waiver of processing fee with free insurance.

Risk Management:

The Bank has implemented Basel-II norms. Implementation of a technology based Management Information System (MIS) is in progress to prepare to move to Advanced Approach.

Customer Service:

A Customer Service Survey undertaken at select centres through an independent accredited agency with a clear objective of improving Customer Service and action initiated based on the findings.

Publicity Department
19th January, 2009

Press Corner