Andhra Bank Q2 net up 74% at Rs 251 cr

Total income for the quarter grew 7% at Rs 4,744 cr

Andhra Bank net profit jumped 74 per cent at Rs 251.26 crore for the quarter ended September 2015, driven by more profitable retail and SME loans among other factors.

Total income for the quarter grew 7.24 per cent at Rs 4,744.16 crore as compared with Rs 4,423.62 crore in the corresponding quarter last year while the overall business grew by 14.4 per cent to Rs 2,96,894 crore from Rs 2,60,012 crore in the year ago period.

Andhra Bank CEO and managing director Suresh N Patel, who took charge earlier this week, said a combination of factors right from the rise in savings deposits, which grew 27 per cent, to the improved performance efficiencies have helped achieve higher profits in this quarter.

He said they would expect to register a growth rate of 14-15 per cent in advances and deposits while maintaining the net interest margin (NIM) levels at 3 per cent for the full year. The bank's NIM has increased to 3.20 per cent as compared with 2. 93 per cent in the corresponding quarter last year.

During the quarter under review the per centage of net non-performance assets (NPAs) has come down to 2.95 per cent at Rs 3,750 crore in the quarter under review from 3.86 per cent or Rs 4,315.79 crore in the corresponding quarter of last year. Patel said they would aim at bringing NPAs further down in per centage terms by the end of the current fiscal.

According to Andhra Bank executive director S K Kalra, the lower growth in corporate advances and higher growth in the profitable credit segments like retail and SMEs have added to the business profitability.

The bank has kept corporate loan growth just at 10 per cent while pushing the growth in retail and SME loans 20.7 per cent and 31.2 per cent respectively during the quarter. Net interest income grew by 17.9 per cent at Rs 1,302 crore from Rs 1,104 crore in the year ago period.

The bank MD said they were not considering any fresh restructuring of loans in the coming quarters.