Credit rating agency, CARE has revised ‘AA’ rating to Allahabad Bank’s Tier-II Bonds (Series V to IX) worth Rs 2,411.90 crore from AA+, ‘AA-’ rating to Upper Tier-II Bonds (Series I & II) worth Rs 1000 crore from AA and ‘AA-‘ rating to Perpetual Debt (Series I) worth Rs 300 crore from ‘AA’.
The rating agency has rated the aforesaid Upper Tier II Bonds and the Perpetual Bonds after taking into consideration their increased sensitiveness to Allahabad Bank’s (AB’s) Capital Adequacy Ratio (CAR), capital raising ability and profitability during the long tenure of the instruments. The rating factors in the additional risk arising due to the existence of the lock-in clause in the hybrid instruments.
Allahabad Bank has reported a rise of 17.76% in its net profit at Rs 275.81 crore for the quarter ended September 30, 2013 as compared to Rs 234.20 crore for the same quarter in the previous year. Total income of the bank increased by 15.72% at Rs 5303.06 crore for quarter under review as compared to Rs 4582.64 crore for the quarter ended September 30, 2012.
