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Allahabad Bank soars on plan to restructure loan to steel, textile sectors

12 Jan 2012 Evaluate

Allahabad Bank is currently trading at Rs 139.30, up by 3.30 points or 2.43% from its previous closing of Rs 136.00 on the BSE.

The scrip opened at Rs 138.00 and has touched a high and low of Rs 140.95 and Rs 136.20 respectively. So far 87442 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 240.00 on 30-Mar-2011 and a 52 week low of Rs 113.60 on 29-Dec-2011.

Last one week high and low of the scrip stood at Rs 140.95 and Rs 121.15 respectively. The current market cap of the company is Rs 6676.54 crore.

The promoters holding in the company stood at 58.00% while Institutions and Non-Institutions held 30.21% and 11.79% respectively.  

Allahabad Bank is likely to restructure the loan to the steel and textile sectors during the third quarter of this fiscal. Currently it has extended loans close to Rs 200-300 crore to the steel and textile sectors. The bank had restructured loans of about Rs 125 crore during the second quarter of this fiscal.

As on September 30, 2011 total outstanding loans under restructured accounts were at Rs 2,941 crore, up from Rs 2,815 crore as on March 31, 2011. A total of Rs 2,722 crore of the restructured loans were in the standard category while close to Rs 220 crore was in the category of non-performing assets (NPA) as on September 2011.

The bank’s net profit for the second quarter ended September 30, 2011 has rose 21.23% at Rs 488.02 crore as compared to Rs 402.56 crore for the corresponding quarter of the last year. The bank’s total income has surged 40.95% at Rs 4202.54 crore for the quarter under review as compared to Rs 2981.66 crore for the second quarter of the previous year.

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