ALLAHABAD BANK NET PROFIT SURGES TO Rs. 1206 CRORE FOR THE YEAR ENDED 31^ST MARCH, 2010

CONSISTENT GROWTH ALL THE WAY

Shri J.P.DUA addressing press on the occasion of announcement of AFR MAR'10

Landmark Performance during FY 2009 - 10

• Allahabad Bank records 34.05% growth in YoY Operating Profit
• Net Profit in 2009-10 up by 56.95 % YoY
• Net Interest Income in 2009-10 up by 22.78 %
• Non Fund Non Interest Income registers 33.15 % growth YoY
• Total Business crosses Rs.1,78,000 crore with a growth of 23.60 %
• Cost to Income Ratio down to 38.83%
• Provision Coverage Ratio increased to 78.95%
  

• Operating Profit in Q4 increased to Rs.658 Crore recording a growth of 7.13% over Q4 of 2009.
• Net Profit stood at Rs.225 Crore during Q4.
• Net Interest Income showed a robust growth of 25.33 % at Rs.743 Crore.
• Non Fund Non Interest Income during Q4 was Rs. 213 Crore.
• Yield on Advances stood at 10.11 % as against 10.59% of corresponding previous quarter.
• Cost of Deposits decreased to 5.58 % from 6.36% as at March’09
• Yield on Investments stood at 6.76 % as against 7.40% of corresponding quarter of previous year.
• Yield on funds stood at 8.43 %
• Cost of funds contained to 5.61 % from 6.38%.
• Net Interest Margin improved to 3.00 % from 2.97%

12 Months period ending 31.03.2010:

• Net Profit increased to Rs.1206.33 Crore against Rs.768.60 Crore last year registering a rise of 56.95%.
• Operating Profit rose to Rs. 2549 Crore as against Rs.1901 Crore of previous year recording a growth of 34.05 %.
• Net Interest Income improved to Rs.2650.48 Crore against Rs.2158.67 Crore of previous year showing an impressive rise of 22.78 %.
• Non Fund Non Interest Income increased to Rs.697 Crore from Rs.524 Crore last year showing a growth of 33.15%.
• Net Interest Margin went up further to 2.94 % from ­­­­­­­2.88% previous year.
• Yield on Advances was 10.57 % as against 10.88% previous year.
• Cost of Deposits further eased at 5.97 % as against 6.62% last year.
• Yield on Investments stood at 6.83 % as against 7.57% of previous year.
• Yield on funds was 8.68 % as against 9.62% last year.
• Business of the Bank stood at Rs.178493 Crore as on 31.03.2010 registering a growth of 23.60% on YoY basis.
• Deposit of the Bank grew to Rs.106056 Crore as on 31.03.2010 as against Rs.84972 Crore as at corresponding day last year, showing an impressive growth of 24.81%.
• Core Deposit of the Bank increased to Rs. 90858 Crore as on 31.03.2010 from Rs.68337 Crore as on 31.03.2009 thereby showing a growth of 32.96 %.
• Deposits under Differential Rate have been reduced to Rs.589 Crore from Rs.3592 crore as on 31.03.2009.
• Gross Credit went up to Rs.72437 Crore as on 31.03.2010 as against Rs.59443 Crore as on 31.3.2009. Year-on-Year basis, the Gross Credit increased by 21.86 %.
• Gross Credit to Aggregate Deposit ratio stood at 69.27 % as at March 2010 as against 70.93% as on 31.03.2009.
• Advances under Priority Sector increased to Rs. 24279 Crore as on 31.03.2010 from Rs.20435 crore as on 31.03.2009 constituting 41.29% of Adjusted Net Bank Credit (ANBC)       against norm of 40%.
• Agricultural Credit increased to Rs. 11567 Crore as on 31.03.2010 constituting 18.68% of ANBC against norm of 18%.
• Credit to Weaker Section was Rs.6150 crore as against Rs.5010 crore which formed 10.46 % of ANBC against norm of 10%.
• Credit to Micro and Small Enterprise increased from Rs.4593 Crore as on 31.03.2009 to Rs.8188 Crore as on 31.03.2010 registering a growth of 78.27% which happens to be Rs.3595 Crore in absolute terms.
• Outstanding in Retail Credit was Rs. 10082.14 Crore as on 31.03.2010 growing by 20% over last year. Fresh disbursement of loan to the tune of Rs.3148.97 Crore made during the year upto March’10 registering a growth of 75%.
• Retail Credit portfolio constitutes 14% of Gross Credit.
• Export Credit increased to Rs.2346 crore as on 31.03.2010 from Rs.2051 crore last year showing a rise of 14.38%.
• Business per employee rose from Rs. 7.06 Crore as on 31.03.2009 to Rs.8.45 Crore as on 31.03.2010.
• Business per branch improved from Rs.63.90 Crore as on 31.03.2009 to Rs. 77.43 Crore during the period.                                                         

Asset Quality:

• Gross NPA declined to 1.69 % from 1.81% at March’09.
• Gross NPA stood at Rs. 1221.80 Crore.
• Net NPA to Net Advances stood at 0.66 % as against 0.72% in March’09.
• Net NPA stood at Rs. 470.15 Crore.
• Provision Coverage Ratio as on 31.03.2010 increased to 78.95% from 75.75%

Shareholders’ Value:

• Earning per Share (EPS) further rose to Rs.27.01 as at March’10 from Rs.17.21 for corresponding previous year.
• Return on Assets has gone up to 1.16 % as at March’10 against 0.90% corresponding period previous year.
• Book Value per share rose to Rs.151.17 as on 31.03.2010 from Rs.131.00 as on 31.03.2009.
• Capital Adequacy Ratio stood at 13.62 % as at March’10 against stipulated norm of 9%.

Technology:

• CBS has been implemented in 969 Branches and Offices covering 81.68 % of Bank’s business as on 31.03.2010.
• Hassle-free Internet Banking, SMS Banking, e-Payment for Direct and Indirect Taxes made available to customers of all CBS branches.
• Instant ATM-cum-Debit Cards facility launched for Customers of all CBS Branches during the year. Bank has issued more than 6.46 lacs ATM –cum-Debit Cards to its Customers.
• On-line Fund Transfer through RTGS/NEFT has been provided for the Bank’s Internet Banking Customers in all the CBS Branches.
• Fees Collection facility is made available to students of Chaudhary Charan Singh University, Meerut (CCS University) through the Bank’s CBS Branches.
• On-line Payment Gateway Services launched by the Bank for its Customers to make real time payments at the Billers’ Sites with instant debit from their accounts.

New Initiatives:

• Under Retail Selling of Gold Coins Scheme launched early this year under “All Bank Gold”, Bank sold 36760 Gold Coins weighing 274.366 Kgs and earned a profit of Rs. 3.02 crore for the year ended March’2010.
• Bank has launched new “Scheme for financing the Rice Shelling Units” and “AllBank Liquid Scheme” for Artiyas (Commission Agents) during the year 2009-10.
• Bank has launched “ALL BANK COMMERCIAL VEHICLE FINANCE” Scheme for financing Commercial Vehicles. Bank has also launched the “Scheme for financing IPO/FPO” of the Companies of repute and “Housing Finance Scheme for NRI/PIO” for granting Housing Finance to NRI/PIOs.
• Bank has been registered as a Self Certified Syndicate Bank with SEBI for “Application Supported by Blocked Amount (ASBA) and extended the facility in 7 Cities under which Bank’s Customer can now subscribe to an IPO without parting with funds at the time of application.
• Under Tie-Up with Life Insurance Corporation of India for selling of Life Policies, Bank has sold 112599 policies during the financial year 2009-10 registering a YoY growth of 54%.
• Bank has earned Rs. 11.49 crore from selling of Life Policies showing a YoY growth of 49%. On the Non –Life Policies front, Bank has earned Rs. 5.56 crore registering a YoY growth of 36%.
• The facility of payment of UP VAT through Net Banking made available to our Customers in UP.                                                                                              
• Bank launched two products-X-press Money and Money Gram for making hassle-free inward Remittances through CBS Branches through an agreement with M/S UAE Exchange and Financial Services Ltd.
• Bank has been selected as a Point of Presence for New Pension System of Pension Fund Regulatory and Development Authority (PFRDA) launched through select branches from 1st May 2009.
• Bank has recently entered into a Tie-Up arrangement with M/S Rasandik Engineering Industries for three-Wheeler Financing.                                                                                                     
• Bank opened 27 branches during the year 2009-10 taking total number of branches to 2287 (including one Overseas Branch at Hong Kong). 976 are Rural (42.69%). 411 are Semi-Urban (17.98%), 472 are Urban (20.65%) and 427 are Metro (18.68%). 69 fresh RBI Authorizations are in hand.
• 27 more branches have been opened in April’10 taking total no. of branches of the Bank to 2314(Including one Overseas Branch at Hong Kong).
• Bank has also launched a New Scheme for financing Doctors/Medical Practitioners for Clinics/Nursing Homes etc. in April, 2010.  

Retail Credit:

• Total Outstanding under Retail Credit as on March’2010 stood at Rs. 10082 crore showing a YoY rise of 20% constituting 14% of Gross Credit.
• Disbursement under Retail Credit during 2009-10 was Rs. 3149 crore showing a YoY growth of 75%.
• Bank disbursed Retail Loans aggregating Rs. 991 crore during the Bank’s Festival Bonanza period ended in March’2010.
• Bank has dedicated Delivery Channels for Retail Lending through its 27 Centralized Retail Banking Boutique (CRBB) and 75 Retail Banking Boutiques (RBBs) across the country. A Customer can now avail Bank’s Retail Loans like Housing Loan, Car Loan, Commercial Vehicle Loan etc. sitting at his Home/Office through Internet or by personal visit at the Bank’s Branch where his application will be transmitted to the CRBB through Intranet.
• Under the modified “AllBank Trade Loan Scheme” launched by the Bank during 2009-10, Loan amount has been increased to Rs. 5.00 crore from Rs. 2.00 crore. Besides, Clean Term Loan facility for payment of Security Deposit and/or Long Term Revenue Expenditure has been introduced.
• Bank has revamped Car Loan Scheme. The Bank’s loan for purchase of Car is also available to the Retired Persons drawing pension from Bank’s Branches.
• Bank has already entered into tie-up with M/S Maruti Suzuki for Car Finance and with M/S Suzuki Motorcycles for Two –Wheelers Finance.
• Bank has reviewed its “AllBank Rent Scheme” and “Housing Loan Scheme” to suit the present market scenario.
• Under the “On-line Approval” facility for Educational Loans, Bank sanctioned loans to 522 students aggregating to Rs. 21.67 crore during the year 2009-10.
• Bank has finalized tie-up with some other reputed Automobile Manufacturers of the country for financing their vehicles.

Human Resources:

• Total manpower strength of the Bank stood at 20959 as on 31.03.2010 as against 20457 corresponding date last year.
• To meet the expansion requirement and need for specialized services, the Bank made fresh recruitment of 1000 Officers (including Specialist Officers) and 1000 employees in Clerical Cadre during the year 2009-10..
• To bring about a paradigm shift as also to improve the approach to Customer service and business, a specialized Training titled “Jagruti” has been imparted to all the Officers and Employees of the Bank.
• During the year 2009-10, Bank has imparted training to 7612 personnel through Bank’s own Training establishments. During the year 2009-10, Bank’s Staff College, Kolkata and Staff College, Lucknow have received ISO 9001:2008 Certification for maintaining the quality management system in the colleges.                                                

Social Banking:

• Bank’s Credit to Priority Sectors grew to Rs. 24279 crore as on 31.03.2010 showing a YoY rise of 18.81%.
• Outstanding Credit to Agriculture increased to Rs. 11567 crore registering a YoY growth of Rs. 1999 crore (20.89%).
• Fresh Credit disbursal in Agriculture reached Rs. 3615 crore during 2009-10 as against the budget of Rs.3565 crore.
• Credit to Micro and Small Enterprises (MSE) surged to Rs. 8188 crore as at March’2010 end showing a YoY growth of Rs. 3595 crore (78.27%).
• Bank has achieved 100% Financial Inclusion in its nine Lead Districts in the States of UP & Jharkhand.
• During the year 2009-10, Bank opened two more RSETIs (Rural Self Employment Training Institutes) at Dumka (Jharkhand) and Banda (UP) taking Bank’s total number of RSETIs to six.
• Bank has opened two Financial Literacy and Credit Counselling Centres (FLCC) at Kolkata and Banda during the current financial year for imparting financial literacy and counseling for credit to public.
• A large sized and strong Regional Rural Bank titled “Allahabad UP Gramin Bank” sponsored by the Bank has been set up by merging Bank’s sponsored two Regional Rural Banks in the state of UP during the year.

Risk Management:

• Basel-II norms have been implemented as per RBI directives and Standarised Approach adopted for Credit Risk, Standarised Approach (Duration based) for Market Risk and Basic Indicator Approach for Operational Risk. Moreover, in terms of RBI guidelines for calculation of Risk capital under “ The Standarised Approach” and “Alternative Standarised Approach” as also calculation of risk capital on account of Market Risk under “ International Model Approach “, the Bank is in the process of migration to Advance Approach for  Risk Capital calculation.

Way Forward:

• Bank has fixed a Business Target of Rs.2,30,000 crore by March’2011 at a growth rate of 30%.
• Bank has planned to migrate all the Branches to CBS by December 2010.
• Launch of a Prepaid Card is also on anvil during the year. The card can be used just as any other Debit Card for making payment online, Point of Sales etc
• Bank’s Joint Venture partner M/S Universal Sompo General Insurance Company have designed a Health Insurance Policy specially for Allahabad Bank Customers, which will be launched shortly.

Publicity Department,
Head Office, Kolkata
30th April, 2010.