Allahabad Bank

Though the bank for Q1FY15 posted a 73% (YoY) drop in its net profit at Rs.113 crore, it remains a thumbs up as asset quality has improved and so has NII. The drop in net profit was on account of fall in other income, increased tax outgo and higher provisioning.  

NII for the quarter rose 23% at Rs.1610 crore though other income, which is non-interest income fell 6%. In terms of asset quality, Gross NPA for the quarter fell a good 25 bps to 5.48% (QoQ) while net NPA too dropped 27 bps to 3.88%.

On the other hand, provisions rose 33% (QoQ) at Rs.852 crore but YoY, this jump is much higher at 91%. Provision coverage ratio was at 50% v.s 46% in Q4. Tax outgo was up 56% at Rs.255 crore. CAR as per Basel III norms was much better at 9.99%, slightly up from 9.96% in Q4.