Despite a 67 per cent surge in net profit and a 42 per cent rise in reserves, Andhra Bank's capital adequacy ratio (CAR) has declined to 12.59 per cent for the year ended March 2002, as against 13.4 per cent a year earlier.
Interestingly, the board of directors of the bank, who met in Delhi on Monday to consider the bank's audited financial results for the last fiscal, has proposed to return Rs 100 crore equity back to the government, the major stakeholder.
The bank's equity is worth Rs 450 crore, and with a reduction in it, the CAR is expected to come down further. None of the directors and officials were available for comment on the rationale behind the equity return decision.
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At present, the government holds 66.66 per cent stake in the bank, while employees hold 3.33 per cent share, corporate bodies 3.04 per cent, institutions 6.76 per cent and 20.21 per cent is with the public. Post-return of capital, the government will hold 57.14 per cent stake in the Rs 350 crore equity.
Meanwhile, Andhra Bank's net profit has shot up by 67 per cent to Rs 202 crore for the year ended March 2002 as against Rs 121 crore the previous year. The bank has announced a 14 per cent dividend to the shareholders, while the register of shareholders and share transfer books will remain closed from June 27 to July 1.
Total income, propped by a 50 per cent rise in other income, has increased by 12 per cent to Rs 2,334 crore from Rs 2080 crore. Other income swelled up by Rs 100 crore to Rs 304 crore from Rs 204 crore. Other major components in the total income included Rs 981 crore interest income (Rs 794 crore), Rs 989 crore income on investments (Rs 1,032 crore), and Rs 53 crore interest on balances (Rs 48 crore) with the Reserve Bank of India and other banks. Earnings per share has increased to Rs 4.49, from Rs 3.55.
On a consolidated basis, the bank posted a net profit of Rs 208 crore on a total income of Rs 2382 crore for the last fiscal. The consolidated statements included performance of the bank's two subsidiaries, Andhra Bank Financial Services and Andhra Bank Housing Finance. The bank has recently decided to merge the housing subsidiary with itself.