Andhra Bank Q2 loss at Rs 385 cr as bad loan provisions rise

Public sector Andhra Bank today reported Rs 385.11 crore loss for the September quarter of the current fiscal as it parked a substantial amount as provision to cover bad loans.
The bank had registered a net profit of Rs 51.42 crore in the July-September quarter of last fiscal, 2016-17.
Andhra Bank's provisions and contingencies rose to Rs 1,668.06 crore during the second quarter of 2017-18, up nearly 75 per cent from Rs 956.81 crore in the year-ago period.
Its gross non-performing assets (NPAs) or bad loans, as a percentage of loans grew to 13.27 per cent as of September 30 this year, as against 11.49 per cent at end-September of 2016, the bank said in a regulatory filing.

Net NPAs rose to 7.55 per cent of net loans disbursed by end of the quarter under review, from 6.99 per cent a year ago.
In value terms, gross NPAs stood at Rs 19,838.58 crore, up from Rs 16,262.86 crore. Net NPAs were at 10,573.60 crore, as against Rs 9,411.27 crore.

Also, bank's total revenues for the quarter fell to Rs 5,005.34 crore against Rs 5,042.67 crore a year ago as core or interest income fell.
Andhra Bank said it has to make an additional provision of Rs 1,111.76 crore from second quarter to be spread over subsequent quarters till March 2018.

"The additional provision over and above the normal ageing provisions of Rs 396.94 crore has been made during the quarter leaving a balance provision of Rs 714.82 crore to be made in the course of the financial year ie before March 2018," it said.
The bank's stock closed 0.80 per cent down at Rs 68.15 on BSE.