Kolkata: State-run Allahabad Bank reported Rs 70 crore net profit in the September quarter, more than double of what it had in the year ago period at Rs 29 crore, even as its asset quality deteriorated to 14.10 per cent.

Income from non core business helped the bank making higher profits despite higher provisions and call fall in net interest margin to 2.37 per cent from 2.67 per cent a year back.

"The shedding of bulk deposits and focus on current and savings account (CASA) mobilisation has helped us containing cost if deposit," the bank CEO Usha Ananthasubramanian said.

It's gross non-performing assets ratio slipped to 14.10 per cent at the end of September compared with 13.85 per cent a quarter ago and 12.28 per cent a year ago.

The bank's operating profit rise 26 per cent at Rs 1223 crore.

It's loan assets degrew marginally at Rs 1.52 lakh crore while Ananthasubramanian said signs are visible for better credit demand in the next two quarters.