Allahabad Bank net up 55.8 per cent in fourth quarter

State-run lender Allahabad Bank on Monday reported a net profit of Rs 264.09 crore in the fourth quarter of 2008-09 as against Rs 169.51 crore in the like period last fiscal, a rise of 55.8 per cent.

However, the bank's yearly profit fell 21 per cent last fiscal.

"Net profit of the financial year 2008-09 stood at Rs 768.6 crore as against Rs 974.74 crore a year before on account of higher provisioning for investment depreciation and income tax," KR Kamath, chairman and managing director of the bank, told reporters.

The net interest margin (NIM) for 2008-09 increased to 2.88 per cent from 2.61 per cent. NIM for the fourth quarter was at 2.97 per cent, up from 2.32 per cent a year ago.

Net non-performing asset (NPA) of the bank in March 2009 was at 0.72 per cent, comparing to 0.8 per cent in March 2008.

"We are looking at a 20 per cent growth in total business in the current year. We are targeting Rs 175,000 crore business by March 2010," Kamath said.

Of the Rs 175,000 crore, the bank is targeting Rs.100,003 crore from deposits and Rs 72,000 crore from advances, he said.

The city-based bank has a headroom to raise Rs 2,900 crore this fiscal, said Kamath, adding: "We don't need funds urgently but may raise some if it's available at a cheaper rate than what it is possible now."

He ruled out possibilities of slashing interest or deposit rates shortly.