Andhra Bank net up 20%

Public lender Andhra Bank posted a net profit of Rs 331 crore for the quarter-ended December, as against Rs 275 crore in the year-ago period, up 20.36 per cent. Total income rose to Rs 2,320.2 crore from Rs 1,826.81 crore while expenditure was up 25.9 per cent at Rs 1,693.59 crore.

Chairman & Managing Director R Ramachandran said an efficient management of resources, combined with growth in all business segments, contributed to the improved performance.

Net interest margin touched its highest-ever level of 3.91 per cent, as against 3.35 per cent in the year-ago period. Net interest income rose 44 per cent to Rs 840 crore.

Cost of deposits was marginally down to 5.84 per cent. “A careful and efficient management of resources made this possible, otherwise it would have been around six per cent due to the increase in deposit rates,” Ramachandran said. Total advances increased 27.72 per cent to touch Rs 65,587 crore, as against Rs 51,352 crore in the same period last year. Deposits were up 23.36 per cent to Rs 82,095 crore.

“Credit offtake was good and so was the growth in deposits. The gap between the two is marginal,” Ramachandran said.

He said the bank could increase the topline without hurting the bottom line even as its benchmark prime lending rate, base rate and deposits rates were in alignment with the industry.