Credit rating agency, CRISIL has assigned its ‘AA+/Negative’ rating to the Rs 500 crore Tier-II bonds (under Basel III) of Allahabad Bank, and has reaffirmed its ratings on the bank’s existing debt instruments at ‘AA+/AA/Negative’.
The ratings continue to factor in the expected strong support that Allahabad Bank is likely to receive from its majority owner, Government of India (GoI). The rating also reflects the bank’s adequate capitalisation and resource profile. These rating strengths are partially offset by the bank's modest asset quality and earnings profile.
The bank registered 48.71% fall in its net profit at Rs 141.44 crore for second quarter ended September 30, 2014 under review as compared to Rs 275.81 crore for the same quarter in the previous year. However, total income of the bank increased 2.14% at Rs 5416.63 crore for Q2FY15 as compared Rs 5303.06 crore for the corresponding quarter previous year.
