Andhra Bank, one of the leading public sector banks in the country, expects to achieve a net profit of Rs 1000 crore by the end of the current fiscal.
The Hyderabad-based bank is also eyeing a total business of Rs 1.3 lakh crore by the end of 2009-10.
Addressing media persons A A Taj, executive director, Andhra Bank said, “During the April-December period of this fiscal, the bank has already clocked net profit of Rs 806 crore, a 78.32 per cent jump over Rs 452 crore achieved in the corresponding period of the previous fiscal. We hope to reach a net profit of Rs 1000 crore by the end of this fiscal.”
The bank's total business touched Rs 1,17,899 crore for the third quarter ended December 31, 2009 which is a growth of 23.04 per cent over the same period of previous fiscal. Of this total business, deposits stood at Rs 66,547 crore while advances reached Rs 51,352 crore, recording a growth of 23.7 per cent and 22.19 per cent respectively over the same period of the previous fiscal.
Stating that the bank has maintained its consistent performance on the asset quality front, Taj said, the gross NPA (Non-Performing Asset) reduced from 0.89 per cent to 0.87 per cent whereas the net NPA came down to 0.17 per cent from 0.21 per cent.
On the possibility of the bank raising interest rates in the wake of the recent hike in cash reserve ratio by the Reserve Bank of India by 75 basis points, he said, “We don't see any possibility of an upward revision in interest rates at least till June this year as there is enough liquidity in the system.”
Taj pointed out that Andhra Bank was focusing more on retail deposits rather than bulk deposits and the bank was giving emphasis on agriculture, Micro, Small and Medium Enterprises (MSMEs) and retail credit.
On branch expansion, he said that the bank has opened 112 branches across the country during the April-December period of this fiscal, taking the bank's total branch network to 1544. Plans are afoot to open 10 more branches by the end of March 2010.
Talking on financial inclusion, Taj said, “Andhra Bank has achieved 100 per cent financial inclusion in Srikakulam and Guntur districts of Andhra Pradesh. Our smart card operations have begun on a large scale and we have already issued over 50,000 smart cards to the customers in the rural .”
