Andhra Bank slips into Rs 385 cr loss on bad loan provisioning

It had reported a net profit of Rs 51 crore in the corresponding quarter previous year

Andhra Bank has reported a net loss of Rs 385.11 crore for the quarter ended September, 2017 on the back of steep rise in provisioning towards bad loans during the quarter.

The bank has slipped into losses for the first time in recent times even though its profits remained lower in past 2-3 years due to the growing NPA problems.

The bank had reported a net profit of Rs 51.42 crore in the corresponding quarter previous year.

Total income for the quarter under review marginally declined to Rs 5,005.34 crore as compared with Rs 5,042.67 crore in the corresponding previous quarter.

The bank had to make a higher provision of Rs 1,668.06 crore, which includes a part of additional provision towards 22 accounts covered under the Insolvency and Banckruptcy Code (IBC) during the quarter under review as compared to Rs 956.81 crore in the corresponding quarter previous year.

The bank was able to bring down the total expenditure by 7.22 per cent at Rs 3,710.39 crore in this quarter as compared to Rs 3,999.44 crore in the corresponding previous quarter.

The proportion of gross and net non-performing assets (NPAs) rose to 13.27 per cent and 7.55 per cent during the quarter ended September 2017 from 11.49 per cent and 6.99 per cent respectively in the year ago period.