Allahabad Bank Dividend Yield and History

Public Sector Banks stocks have fallen like house of cards on the back of heavy portfolio selling fearing the exponential rise in non performing assets in coming months. 

The gross and net non-performing assets of almost all public sectors banks are rising fast since past couple of quarters mainly due to debt restructuring and casualties in specific large accounts. However the steep fall in stock prices have made most of the PSBs attractive for medium to long term investors as they are trading at historical low valuations and high dividend yields.

Buy Allahabad Bank: Price to Book Value Attractive

Public Sector Banks has had decent run up in January this year in anticipation of easing NPA pressure but surprisingly that happened for only select public sector banks and majority of them are still witnessing incremental NPA problems. 

Allahabad bank too witnessed incremental growth in bad assets with net NPA at Rs 24.76 billion for the quarter ended Dec. 31, 2012, as compared to Rs 7.96 billion for the quarter ended Dec. 31, 2011, representing an increase of 3.11 times. Consequently the bank reported a fall of 44.54% in net profit to Rs 3.11 billion for the quarter ended Dec. 31, 2012 as compared to Rs 5.60 billion in the same period last year.