State-run, Allahabad Bank has entered into a memorandum of understanding (MOU) with the country’s largest life insurer, Life Insurance Corporation of India (LIC) to manage its management expenses and policy payments via NEFT. Further, the MOU will also help in opening more and more such accounts of LIC with the bank.
Recently, Allahabad Bank had suspended lending to the power sector due to losses incurred by state distributors and hurdles to new power plants.
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.
