State-run lender Allahabad Bank on Friday reported a net profit of Rs 28.84 crore in the quarter ended June 30, 2017 as compared to a loss of Rs 564.96 crore in the year-ago period.
"Reduction in cost of deposits and total expenses and a surge in operating profit were the key reasons behind the net profit numbers for Q1 (April-June quarter)," Bank's Managing Director and Chief Executive Officer Usha Ananthasubramanian told reporters here.
According to her, cost of deposits reduced by 76 basis points to 5.49 per cent.
"We had taken a conscious decision of shedding our bulk deposits and create a stable and consistent deposit portfolio," she said.
The lender's provision for non-performing assets (NPAs) in the quarter under review, stood at Rs 1,686.7 crore in the quarter, up by 7.1 per cent from Rs 1,574.59 crore in the corresponding quarter last year.
It said its non-performing loan provision coverage ratio was at 52.49 per cent in June quarter, improving from 46.03 per cent in the year-ago period.
Bank's total income during the period was at Rs 4,968.57 crore, down by three per cent from Rs 5,122.91 crore in same period last year.
In the quarter, gross NPAs stood at Rs 21,032.42 crore, up by 9.49 per cent from Rs 19,208.62 crore in the corresponding period last year. In terms of net NPAs, it was at Rs 12,868.66 crore during the three months ended June 30, as against Rs 12,976.43 crore in the same period last year.
In the quarter under review, the gross NPAs as a percentage of total advances, was at 13.85 per cent, as against 12.33 per cent in the corresponding period last year while its net NPAs ratio rose to 8.96 percent in the quarter as against 8.69 per cent in the year-ago period.
The lender said its return on assets (RoA) remained positive (0.05 per cent) in the quarter as compared to a negative RoA (-0.99 per cent) in the same quarter last year.