OREANDA-NEWS. May 03, 2011. Allahabad Bank records 19.86 % growth in Operating Profit in FY-2010-11

Net Profit up by 17.97 % (YOY) at Rs. 1,423.11 crore

Net Interest Income up by 51.76 % (YOY)

Net Interest Margin (NIM) surges to 3.38 %

Earnings per Share mounts to Rs. 31.85

Highlights of Q4’ FY-2010-11 (3 months)

Operating Profit as at March, 2011 quarter end stood at Rs. 780 crore as against Rs. 658 crore last year showing a YoY growth of 18.56%.

Net Profit of the Bank increased to Rs. 258 crore for the quarter ended March, 2011 as against Rs. 225 crore in the corresponding quarter last year registering a YoY rise of 14.74%.

Net Interest Income during Q-4-FY2010-11 stood at Rs. 1,151 crore as against Rs. 743 crore last year showing a YoY growth of 55.04 %.

Non-Interest Income during the fourth quarter of 2010-11 stands at Rs. 300 crore as against Rs. 213 crore last year.

Net Interest Margin (NIM) surges to 3.49% at the end of the March, 2011 quarter as against 3.00 % last year.

Yield on Advances stands at 10.71 % as at the March, 2011 quarter end as against 10.11 % corresponding quarter last year.

Cost of Deposits increased to 6.01 % as at the March, 2011 quarter end from    5.58 % as at quarter ending March’10.

Yield on Investments stands at 7.20 % as at March, 2011 quarter end as against 6.76% of corresponding quarter last year.

Yield on funds rose to 9.46 % as at the end of March, 2011 as against 8.43% last year.

Cost of Funds increased to 6.00 % from 5.61 % last year.     

Highlights of 12 Months period ending 31.03.2011

Operating Profit surged to Rs. 3,055 crore as at March, 2011 as against Rs. 2,549 crore last year showing a YOY growth of 19.86 %.

Net Profit rose to Rs. 1,423 crore  during the Financial Year ending 31.03.2011 as against Rs. 1,206  crore last year showing a YOY Growth of 17.97 %

Net Interest Margin (NIM) increased to 3.38 % during the Financial Year ending March, 2011 as against 2.94% last year.

Net Interest Income during the Financial Year ending March, 2011 stood at Rs. 4,022 crore  as against  Rs. 2,650 crore last year recording a YOY Growth of 51.76 %

Non-Interest Income during the Financial Year ending March, 2011 stood at Rs. 857 crore as against Rs. 697 crore last year.

Total Business of the Bank increased to Rs. 2,26,458 crore as on 31.03.2011 as against Rs. 1,78,493 crore in previous year showing a YOY growth of 26.87 %.

Deposits of the Bank went up to Rs. 1,31,887 crore as on 31.03.2011 from Rs. 1,06,056 crore as on 31.03.2010. Year-on-Year basis, Total Deposits grew by 24.36 %.

Gross Credit surged to Rs. 94,571 crore as on 31.03.2011 as against Rs. 72,437 crore as on 31.03.2010. Year-on-Year basis, the Gross Credit increased by 30.56 %.

Credit Deposit Ratio rose to 72.18% as at March, 2011 end as against 68.93 % last year.

Yield on Advances stands at 10.50 %.

Yield on Investments increased to 7.04% as against 6.83% last year.

Cost of Deposits has come down to 5.83 % as against 5.97% last year.

Cost of Funds declined to 5.85 % as on 31.03.2011 as against 5.99% last year.

Yield on Funds improved to 9.19 % as against 8.68% previous year.

Gross NPA to Gross Advances stands at 1.74 % as at March, 2011-end.

Net NPA to Net Advances Ratio stands at 0.79% as at March, 2011.

Provision Coverage Ratio stands at 75.67 %.

Capital Adequacy Ratio was 12.96 % as on 31.03.2011 as against the stipulated norm of 9%.

Business per Employee surged to Rs. 10.63 crore as on March, 2011 as against  Rs. 8.45 crore last year.

Business per Branch improved to Rs. 93.38 crore as on 31.03.2011 as against Rs. 77.62 crore last year.

Shareholders’ Value:

Earnings per Share surged to Rs. 31.85 during the Financial Year ended March, 2011 from Rs. 27.01 corresponding last year.

Book Value per Share increased to Rs. 178.64 during the Financial Year ended March, 2011 from Rs. 151.17 as on 31.03.10.

Return on Asset as at the end of Financial Year ending March, 2011 stood at 1.11%.

New Initiatives:

Bank opened 129 Branches during last financial year of which 17 are Rural, 43 Semi-Urban, 36 Urban and 33 are in Metropolitan areas taking the total number of Branches to 2,415 (excluding one Overseas Branch at Hong Kong).

During the Financial Year 2010-11, Bank has recruited 1,851 employees (972 Officers and 879 Clerks) in the system.

1.30 million new customers were brought under bank’s hold during Savings Bank mobilization campaign.

Bank has launched New Retail Finance Schemes for the Customers as under:-

1)“Housing Finance Scheme for NRI/PIO” for granting Housing Finance to NRI/PIOs

2) Premium Housing Finance Scheme for High Net worth individuals (HNIs)

3) SARAL-2 for the employees of the Organizations/Institutions, where the salaries are disbursed through our Branches.

Bank has launched undernoted structured Loan products under Priority Sector Credit to promote agro-based Industries and support trading of farm produce during the last financial year:

a)Scheme for Financing to Rice Shelling Units

b)AllBank Liquid Scheme for Artiyas (Commission Agents)

c)Scheme for Construction of Godown under Lease Agreement with FCI/Central Govt. or State Govt. Corporation/Agencies.

d)Scheme for Seed Processing Units.

Bank has tied up with a number of Automobile Manufacturers of repute during the last year for financing vehicles.

Bank has tied up with insurance companies in providing credit insurance to the borrowers particularly to MSME borrowers.

The Bank has established seven more Rural Self Employment Training Institutes (RSETI) during the FY’10-11 for imparting training to farmers, unemployed youths, NGOs, SHGs for improvement of skills and entrepreneurship ability, taking the total number to 13.

Under Financial Inclusion Plan, Bank has fulfilled the commitments made to the Govt. of India.

Bank has organized 21 Meets with the Exporters at various centers of the country.

Bank has organized 43 Meets with the MSME Borrowers countrywide last year.

Technology

Bank’s Internet Website is now available in 3 languages i.e. Hindi, English and Bengali.

Online Retail Processing and sanction facility to our internet customers through the lead generating branches of 27 Centralised Retail Banking Boutiques (CRBB) across the country is made available.

Retail Credit:

Total Disbursement under Retail Credit of the Bank upto March, 2011 surged to Rs. 3,869 crore  as against Rs. 3,149 crore during the corresponding period last year registering a growth of 22.85 %.

Total Outstanding under Retail Credit as on 31.03.2011 stood at Rs. 13,029 crore as against Rs. 10,082 crore as on 31.03.2010, constituting an increase of 29.23 % during the financial year.

Retail Loans amounting to Rs. 975 crore were disbursed under Bank’s Festival Bonanza period ended in March, 2011.

The Bank has dedicated delivery channel for Retail Lending through its 27 Centralised Retail Banking Boutiques (CRBB) and 75 Retail Banking Boutiques (RRB) across the country. All other Branches are also authorized to sanction and disburse Retail Loans.

Total disbursement under Housing Loan during FY’10-11 surged to Rs. 676 crore as against Rs. 519 crore last year registering a YoY growth of 30.28%.

Outstanding under Bank’s Education Loan soared to Rs. 1,040 crore as on 31.03.2011 as against Rs. 826 crore last year registering a YoY growth of 25.96%.

Education Loan disbursed to 8,613 students aggregating Rs. 177.15 crore.

Outstanding under Bank’s Auto Loan (Car & Mobike) has increased to Rs. 621.29 crore as on 31.03.2011 from Rs. 476.64 crore registering a YoY growth of 30.35%.

Outstanding under ALLBANK COMMERCIAL VEHICLE FINANCE Scheme has increased to Rs. 432.89 crore as on March, 2011 as against Rs. 71.19 crore last year registering a YoY growth of 508.17%.  Rs. 256.66 crore were disbursed during last fiscal in 5,725 accounts.

Social Banking:

Priority Sector Credit of the Bank grew to Rs. 30,764 crore as on 31.03.2011 from Rs. 24,279 crore last year registering an absolute YoY growth of Rs. 6,485 crore (26.71%). Bank has exceeded the National Goal (40%) of Priority Sector Credit to ANBC by achieving 42.96% as on March, 2011.

Agriculture Credit Outstanding rose to Rs. 13,387 crore as on March, 2011 from Rs. 11,567 crore last year registering an absolute YoY growth of Rs. 1,820 crore. Bank has exceeded the National Goal of 18% of Agriculture Credit by achieving 18.20% as on March’2011.

Fresh Credit disbursal in Agriculture Loans soared to Rs. 4,989 crore during FY’10-11 as against the Budget of Rs. 4,440 crore.

The Bank issued 1.91 lac Kisan Credit Cards (KCC) involving a credit amount of Rs. 1,615 crore during 2010-11. The cumulative KCC numbered 8.21 Lac involving a Credit line of Rs. 4,589 crore as on 31.03.2011.

Credit to Micro and Small Enterprises (MSE) surged to Rs. 11,990 crore as on 31.03.2011 from Rs. 8,188 crore last year registering an absolute YoY growth of Rs. 3,802 crore (46.43%). Share of Micro Enterprises to Total Micro & Small Enterprises has exceeded the National Goal (50%) by achieving 50.68% as on March, 2011.

Credit to Micro, Small and Medium Enterprises (MSME) increased to Rs. 14,384 crore as on 31.03.2011 from Rs. 9,771 crore last year registering a YoY growth of 47.21%. As on 31.03.2011, as many as 26,092 proposals have been covered under CGTMSE amounting to Rs. 897 crore.

Bank has been playing a lead role in organizing Banks operating in the State of Jharkhand as Convenor of State Level Bankers’ Committee (SLBC). 137 new Branches of Banks were opened in the State of Jharkhand in unbanked and underbanked areas on priority basis. Bank took steps for implementation of Special Package for Drought Relief announced by the Govt. of Jharkhand.

As SLBC Convenor in the State of Jharkhand, 515 villages having population over 2000 were provided with banking facility during FY’10-11. A Mobile Banking Van with ATM was operationalised in Ranchi to cover 12 villages in the Bank’s Lead District Dumka in the State of Jharkhand. Another Mobile Van has been launched at Kasraila in Sitapur, UP last year. Bank also launched Coin Vending Machine in Ranchi.

The Bank has established seven more Rural Self Employment Training Institutes (RSETI) during the FY’10-11 for imparting training to Farmers, unemployed youths, NGOs, SHGs for improvement of skills and entrepreneurship ability, taking the total number to 13.

Under Financial Inclusion Plan, during FY’10-11, Bank has covered 1054 villages under various models against the Target of 1046 villages. 5 “Brick & Mortar” Branches were opened during FY-10-11 exclusively under the Plan. Bank has successfully implemented 100% Financial Inclusion Plan in all of its 18 Lead Districts in UP and Jharkhand.

The no. of sponsored Regional Rural Bank is now 2 – one each in Uttar Pradesh and Madhya Pradesh in line with Govt. of India guidelines of “One State One RRB”

Awards Received

Bank has been awarded the National Award of First Prize for excellence in MSE Lending for 2009-10 by the Govt. of India. The Prize was handed over to Shri J.P.Dua, CMD of the Bank by H.E. Smt. Pratibha Devisingh Patil, Hon’ble President of India in New Delhi on 31.08.2010.

Bank has been awarded “Indira Gandhi Rajbhasha Puraskar” by H.E Md. Hamid Ansari, Hon’ble Vice-President of India for excellence in implementation of Rajbhasha in the Bank for 2008-09 on 14.09.2010.

Bank has been awarded the Reserve Bank Rajbhasha Puraskar for excellence in implementation of Rajbhasha in the Bank from Dr. D. Subbarao, Hon’ble Governor, RBI on 26.05.2010.

Future Plans

Bank is planning to go for MTN issue of USD 500 million of 5 to 5.5 years tenure, to be listed on Singapore Exchange.

Bank has planned to open 155 Branches and 500 ATMs in FY-2011-12.

Bank has planned for 25% growth in Business to reach at Rs. 2,80,000 crore by March, 2012 end.

Bank will be recruiting 1500 Probationary Officers and 1100 Clerical Staff for the year 2011-12.

Bank has plan to open 9 more Centralised Retail Banking Boutiques (CRBB) in FY-2011-12 to take the total number to 36.

Bank is going to open 11 more Financial Literacy and Credit Counselling Centres (FLCC) at Lead Districts of the Bank- Bahraich (UP) ,Balrampur (UP), Gonda (UP), Sonbhadra (UP), Sitapur (UP) , Shrawasti (UP), Hamirpur (UP), Lakhimpur Kheri (UP), Mirzapur (UP), Satna (MP) and North 24 Parganas (WB).

Bank has planned to cover 2,618 villages allotted to it with population of 2,000 and above within 2011-12 and 15,549 villages with population less than 2,000 to be covered within 31.03.2014 under its Financial Inclusion Plan.

Bank has planned to open more Branches Overseas, which include one each at Singapore, Shanghai, Dhaka (Bangladesh) and Kowloon (Hong Kong) for which ground work is in progress.

Bank’s plans to facilitate issuance of Unique Identification Number (UID) to most of the Customers of the Bank under the project “ADHAAR”.

With a view to enhance the bouquet of services to customers, Bank is in the process of introducing PRE-PAID CARDS.

CBS implementation in the Bank’s sponsored 2 Regional Rural Banks will be completed in 2011-12.