Allahabad Bank reports almost 8% net profit growth

Kolkata: State-run Allahabad Bank reported close to 8 per cent growth in its net profit of Rs 70.20 crore for the quarter ended September 30, as compared to Rs 65.03 crore in the same quarter, a year back.

Operating profit for the lender surged by 26.03 per cent to Rs 1,223 crore in the second quarter of the current fiscal as compared to Rs 970 crore in the year-ago period. Its asset quality deteriorated to a little over 14 percent.

"A 40 percent rise in income from non-core business at Rs 878 crore helped the bank making higher profits despite 27 percent higher provisions at Rs 1153 crore," CEO Usha Ananthasubramanian said.

The bank has identified 20 accounts, where it is the sole lender, to refer to the National Company Law Tribunal (NCLT) for debt resolution, taking its involvement in bankruptcy cases to 56 accounts.

"These 20 accounts involve about Rs 900 crore," a senior official said adding that the bank is likely to refer these cases to NCLT this quarter.