 "Andhra Bank Q 3 net profit dips 83 per cent at Rs 34.46 crore")
Andhra Bank has reported a steep 82.9% decline in net profit at Rs 34.46 crore for the quarter ended December 2015 on the back of higher provisioning towards bad debt and lower income growth.
The net profit for the corresponding quarter previous year stood at Rs 201.71 crore while was in the last quarter ending September 2015 it was Rs 251.26 crore.
The total income grew 5.74% at Rs 4,801.40 crore as compared to Rs 4,540.34 crore in the year ago period.
Even though the operating profit of Rs 1,030 crore was marginally higher compared to the corresponding previous quarter, the bank's performance took a huge hit from the provisioning that grew by a whopping 67% during the quarter.
The total provisions rose to Rs 905.56 crore from Rs 541.52 crore in the corresponding quarter previous year. Of this Rs 815.16, or about 90% of the provisioning was made towards the non-performing assets (NPAs), indicating a rise in bad loans. Percentage of gross NPAs rose to 7% compared to 5.99% in the year ago period. The percentage of net NPAs increased to 3.89% from 3.70% in the corresponding previous quarter.
The net interest margin, yield on advances and yield on funds were all on the lower side compared to that in the corresponding previous quarter. The total business, however, grew by 17.2% crossing the Rs 3 lakh crore mark from Rs 2.60 lakh crore in the corresponding previous quarter.
