Andhra Bank Q1 net up 30% at Rs 40 cr

The bank has registered a 5.89% growth in overall business

Andhra Bank has reported a 30 per cent increase in net profit at Rs 40.32 crore for the quarter ended June 2017, largely helped by a fall in expenditure despite a growth in revenue. The net profit was Rs 31.09 crore in the same quarter previous financial year.

Total income for the bank grew 6.2 per cent at Rs 5,155.21 crore during the quarter under review helped by a steep rise in income from the treasury, as compared with Rs 4,855.50 crore in the year ago period.

The interest income grew only marginally (0.69 per cent) at Rs 4,402 crore as compared to Rs 4,372 crore while the non-interest income rose by 55.63 per cent to Rs 753 crore as compared to Rs 484 crore in the year ago period.

Notably, the bank was able to reduce the expenditure by 1.8 per cent to Rs 3,785.68 crore in this quarter from Rs 3,855.64 crore in the corresponding previous quarter due to a decrease in interest expanded. The interest expanded was Rs 2,981 crore in the quarter ended June, 2017 as compared to Rs 3,102.80 crore in the corresponding previous quarter.

The provisions and contingencies grew 30 per cent at Rs 1,369.53 crore as compared to Rs 943.77 crore in the corresponding previous quarter as the problems of bad debt continued to persist during the period.

As a consequence. the Net Interest Income (NIM) was declined to 2.90 per cent in this quarter from 3.07 per cent in the same period last year.

The gross and the net NPAs as a percentage of total advances rose to 13. 33 per cent and 8.09 per cent, respectively. The gross NPAs and the net NPAs stood at 10.3 per cent and 6.21 per cent, respectively in the corresponding quarter previous year.

Though corporate and wholesale banking registered a 12 per cent decline during the quarter, the gross profit increased 13.48 per cent from this segment. Profit from the treasury operations jumped by 50 per cent.

The bank has registered a 5.89 per cent growth in overall business of which advances and deposit grew by 6.25 per cent and 5.61 per cent, respectively.