 "Andhra Bank net up 342%")
Total income grew 16 per cent to Rs 4,541 crore in the quarter under review from Rs 3,900 crore in the year-ago period.
The net interest margin (NIM) rose to 3.43 per cent from 2.89 per cent. Total business expanded 11.3 per cent, while the advances grew 15.7 per cent.
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“Cost of deposits have been reduced to 7.66 per cent in this quarter compared to 7.84 per cent in the past, while the yield on advances has gone up to 11.66 per cent from 11.15 per cent in the same quarter last year. And Rs 126 crore in interest reversals also helped take the NIM to 3.43 per cent levels,” said C V R Rajendran, chairman and managing director, on the upside in the net profit numbers.
The operating profit rose 77 per cent to Rs 923 crore from Rs 522 crore in the year-ago period.
However, the gross non performing assets(NPAs) remained high and even rose further to 5.99 per cent, compared to 5.55 per cent in the year-ago period.
Net NPAs marginally rose to 3.7 per cent compared to the year-ago quarter. Sequentially, however, there was a 16-basis point decline.
The provisions and contingencies grew 52 per cent to Rs 721 crore from Rs 476 crore in the corresponding previous quarter.
According to Rajendran, given the size of operations, Andhra Bank has the potential to fetch a net profit of Rs 2,000 crore.
Rajendran said a massive recovery programme was underway involving all the 18,000 employees with each taking the responsibility for about 20 NPA accounts.
The bank would raise another Rs 500 crore in tie-1 capital by March this year; it would also consider raising Rs 1,000-1,500 crore in the first half of the next financial year if the interest rates look attractive, he added. Rajendran expects a 20 per cent growth in business next year.