ALLAHABAD BANK CONTINUES ITS MARCH AHEAD

The highlights of the performance for the quarter-ended June 2006 are summarised as under:

Profit Parameters - consolidating the financials

• Operating Profit increased to Rs.207.43 crores during the April-June'06 from Rs.185.05 crores during April-June'05, registering a growth of 12.09%.

• In order to infuse greater strength in the financials, the Bank gradually reduced its Modified Duration of AFS portfolio from 3.55 as at March-end 2005 to 3.51 as at March-end 2006 and again to 2.65 as at June-end 2006, by churning its investment portfolio from AFS portfolio to HTM portfolio. This has substantially enhanced the Bank's capacity to absorb the future shock due to adverse movement in market interest rate in the remaining quarters of the current financial year. In this manner, the Bank immunized itself against the interest rate risk to a great extent. Considering this prudential measure, the Bank has chosen to absorb this one time shock in the form of substantially high depreciation in the current quarter. As a result, the Net Profit of the Bank was Rs.128.25 crores during April-June'06 as against Rs.162.98 crores in the corresponding period last year.

• The Bank has been able to increase its core banking income as evindenced from the increase in interest spread from Rs.359.70 crores for the quarter ended June'05 to Rs.390.96 crores for the quarter ended June'06.

• During April-June'06, the yield on advances increased to 8.77% from 8.61% during April-June'05. The Bank has hiked its BPLR recently by 25 bps, which is expected to contribute further rise in the yield in the remaining quarters.

Business Parameters - Growth continues

• The Business of the Bank has crossed Rs.80,000 crores mark as at June-end 2006. The Business of the Bank has more than doubled within a span of three years from Rs. 39,387 crores as on 30.06.2003 to Rs.82, 620 crores as on 30.06.2006.

• Year-on-Year basis i.e. from July'05 to June'06, the Business increased by 26.23%.

• Total Deposits grew by 17.98% during July'05 to June'06. (Year on Year basis).

• The amount of Low-Cost Deposit increased by Rs.3248 crores during the year ended June'06 as compared to the growth of Rs.2852 crores in the corresponding period last year. Savings Bank Deposits grew by Rs.2405 crores during the year ended June'06 as against Rs.2092 crores in corresponding previous year.

• Market Share in aggregate deposits increased to 2.26% as at June-end 2006 from 2.21% as at June-end 2005.

• Gross Credit grew by 41.17% during July'05 to June'06. (Year on Year basis). Non-Food Credit grew by 42.64% during this period.

• Market share in advances also increased to 2.13% as at June-end 2006 from 1.94% as at June-end 2005.

• Gross Credit to Total Deposit ratio increased to 66.6% as at June--end 2006 from 55.9% as at June-end 2005.

• Business per employee of the Bank increased to Rs.3.95 crores as at June-end 2006 from Rs.3.23 crores as at June-end 2005.

Asset Quality & CRAR - steady improvement

• Gross NPA to Gross Advances reduced to 3.67% as at June-end 2006 from 5.37% as at June-end 2005 and 3.94% as at March-end 2006.

• Net NPA to Net Advances ratio reduced to 0.81% as at June-end 2006 from 0.99% as at June-end 2005 and 0.84% as at March-end 2006.

• Capital Adequacy Ratio was comfortable at 12.24% as at June-end 2006. (well above the stipulated norm of 9%).

Social Banking - our national commitment

• The outstanding agriculture credit increased from Rs.4387 crore as on June-end 2005 to Rs.5975 crore as on June-end 2006 registering growth of 36.20% during July'05 to June'06. The agriculture credit constitutes 18.20% of Net Bank Credit as against the norm of 18%.

• The Bank has launched two novel schemes, "Mahila Shakti Yozana" and "General Credit Card" on the auspicious 142nd foundation day of the Bank. The former scheme is designed to encourage women entrepreneurship within the country and the latter is attributed on line of credit card, generally meant for meeting the credit requirement of farmers.

Fee Based Banking - broadening the income base

• Non-Fund/Non-Interest Income of the Bank increased from Rs.61.66 crores during April-June'05 to Rs.75.82 crores during April-June'06, recording a rise of 23% during this period.

• In order to widen scope of Bancassurance and mutual fund, the Bank has deployed 130 fully trained officers for mobilizing life insurance business besides discharging their normal responsibility.

• The Bank was rewarded by UTI Mutual Fund for outstanding performance for their New Fund Offer- Dividend Yield Fund.

• A Special Scheme has been launched to provide insurance cover to the loanee student under Bank's Education Loan to cover their loan liability.

TECHNOLOGY NETWORK - our priority and challenge

• More than 95% of the Bank Business has been brought under computerization.

• Number of ATMs was 197 as on 30.06.2006. More than 250 ATMs will be installed shortly.

• In order to improve operational effectiveness the Bank is all set to implement Core Banking Solution (CBS). Pilot Implementation of CBS will be on from October 2006

International Banking - going global

• Allahabad Bank, the oldest public sector bank has entered into international arena with the opening of representative office at Shenzhen, China and a proposed branch at Hong Kong, which is going to be opened shortly.

The Bank has already established its strong presence in the Banking Industry and we are sure to consolidate our position in the days to come.

Reviewed Financial Results for the quarter ended 30th June, 2006
 

Quarterly Results Archive