Allahabad Bank reported a 25% growth in PAT for 2QFY2016, aided by higher net interest income and lower provisions along with stable asset quality. NIM improves qoq; Slippages remain elevated During 2QFY2016, the bank witnessed a modest growth of 6.3% yoy in its loan book, while deposits growth was sluggish at 1.5% yoy. CASA deposits grew by 8.5% yoy (4.6% qoq), aiding 223bp yoy and 69bp qoq increase in banks CASA ratio to 34.9%. Yield on funds for the bank declined 18bp qoq to 9.5% while a 25bp qoq decline in the costs of funds on improved CASA ratio led to a 4bp qoq rise in Reported NIMs to 2.95%. The non-interest income (excluding treasury) for the bank saw a decline of 11.2% yoy led by decline in other income which however was partially offset by growth of 17.3% yoy in the fee income. During the quarter, asset quality pressures for the bank continued, as annualized slippages rate got elevated to 4.4%, higher than 1.9% in 1QFY2016 and 3.8% in 2QFY2015. Gross NPA ratios declined marginally by 0.6% qoq, while net NPA declined 1.6% qoq. The PCR for the bank continued to rise (up 117bp qoq during the quarter to...