Andhra Bank has reported 30 per cent growth in net profit to Rs 312.78 crore for the quarter ended March 31, 2011, from Rs 240.26 crore in the same period last year. The public sector bank’s total income was Rs 2,662.47 crore, up 34.66 per cent over Rs 1,977.05 crore in the corresponding quarter a year ago.
For the entire 2010-11 financial year, consolidated net profit increased 20.78 per cent to Rs 1,267.78 crore from Rs 1,049.66 crore in 2009-10.
Announcing the financial results, Andhra Bank Chairman and Managing Director R Ramachandran said, “Good growth in advances and good recovery practices led to the profit in Q4. We are trying to maintain balanced growth in topline and bottom line.”
The bank’s net interest margin improved to 3.8 per cent for the full year from 3.21 per cent a year ago, as cost of deposits was lower. Gross non-performing ratio stood at 1.38 per cent as on March 31, 2011, while net non-performing asset (NPA) was 0.38 per cent.
| IMPRESSIVE QUARTERLY NUMBERS (Standalone) | ||
| Andhra Bank | ||
| (In Rs crore) | Mar '11 | % Chg* |
| Interest earned | 2,363.50 | 38.38 |
| Other income | 298.97 | 11.10 |
| Total income | 2,662.47 | 34.67 |
| Interest expended | 1,501.96 | 42.80 |
| NII | 861.54 | 31.30 |
| Net profit | 312.78 | 30.18 |
| Source: Capitaline *Over previous year Data compiled by BS Research Bureau | ||
Ramachandran said there had been no abnormal spurt in NPAs in any specific sector, though there was a rise in the ratio in various sectors including microfinance, small industries, retail, and agriculture.
The capital to risk-weighted assets ratio was 14.38 per cent under Basel II norms with Tier 1 capital at 9.68 per cent and Tier 2 capital at 4.7 per cent. It was 13.93 per cent in 2009-10.
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Ramachandran said the 50-basis-point increase in interest paid on savings deposits announced by RBI would add about Rs 100 crore to the interest outgo of the bank.
On the outlook for a change in base rate, Ramachandran said, “There is a case for an increase in base rate and benchmark prime lending rate. We will take a decision soon.” The bank’s current base rate is 9.5 per cent, with the last change made in February.
The Malaysian subsidiary bank, India International Bank (Malaysia) Bhd, being set up as a joint venture between Bank of Baroda, Andhra Bank and Indian Overseas Bank is expected to begin operations in the July-September quarter, he said.
It plans to open 125 new branches this year. “We would also like to increase our market share through new branches outside Andhra Pradesh to make it visible pan-India,” he said.