The Hindu : Allahabad Bank net doubles

Online edition of India's National Newspaper
Sunday, May 18, 2003

Business

Business

Allahabad Bank net doubles

By Our Staff Correspondent

KOLKATA MAY 17. Allahabad Bank has registered a sharp rise in its net profit to Rs. 166 crores in 2002-03 from Rs. 80 crores in the previous year. The bank has proposed a dividend of 10 per cent for the year.

Net non-performing assets have come down to 7.08 per cent from 11.9 per cent. Despite fresh addition of Rs. 411 crores last fiscal, total NPAs have come down to Rs. 1,842 crores from Rs. 2,002 crores. About Rs. 100 crore worth bad and doubtful assets, including working capital exposure to Essar Steel and JCT, were revived.

AllBank Finance, the wholly owned merchant banking subsidiary which went deep into the red, had suddenly got a fresh lease of life following the winning of a major litigation recently.

The court order would enable it to recover Rs. 42 crores which would exceed the current liabilities worth Rs. 32 crores.

The boards of Allahabad bank and AllBank Finance have already approved proposals favouring merger with the parent. The merger will be over this year.

Talking to The Hindu following a press conference the bank executive director K. K. Rai said that but for further stress on retail business which doubled in 2002-03, computerisation would be the main thrust of the bank during the current fiscal. Incidentally though planned in early 1990's the issue was sent to the back burner as the bank slipped into the red. While Rs. 50 crore is already set aside, Mr. Rai expects the expenditure could well surpass the projection.

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