Allahabad Bank - 1QFY2014 Result Review - Angel Broking

Allahabad Bank reported muted operating performance for the quarter, with earnings de-growth of 19.6% yoy. NII for the bank remained largely flat yoy. Boosted by treasury gains, non-interest income grew strongly by 61.9% yoy. Overall, pre-provisioning profit for the bank grew at subdued 6.9% yoy. The bank witnessed significant asset quality deterioration during the quarter, as Gross and Net NPA levels increased sequentially by around 19-20%. Consequently, the provisioning expenses for the bank grew by 42.3% yoy and hence, the earnings declined by 19.6% yoy. At the CMP, the stock is trading at 0.3x FY2015E ABV.

We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

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