Andhra Bank Q4 profit rises 19.4%

State-owned lender Andhra Bank posted a net profit of Rs 240.29 crore for the quarter ended March 31, up 19.42 per cent from Rs 201.21 crore during the same period last year. Revenues for the quarter increased 8.2 per cent to Rs 1,977.05 crore, compared with Rs 1,827.1 crore in the year-ago period.

For 2009-10, the bank’s net profit was Rs 1,049.66 crore, up 59.99 per cent from Rs 656.05 crore in the previous year. Total income rose 19.5 per cent to Rs 7,340.57 crore, compared with Rs 6,142.25 crore last year.

Business during the year increased 29.25 per cent, from Rs 103,818 crore last year to Rs 134,194 crore, including deposits of Rs 77,688 crore and advances of Rs 56,505 crore.

Addressing the media here on Thursday, Andhra Bank Chairman and Managing Director RS Reddy said medium, small and micro enterprise, retail and agriculture sectors, which grew 54.5, 47.6 and 34.2 per cent, respectively, during the year, were the main contributors to growth.”

He said gross non-performing asset (NPA) of 0.86 per cent and net NPA of 0.17 per cent were among the best in the industry.

The bank made a provision of Rs 305.21 crore during 2009-10, 79.4 per cent more than in the previous year.

Net interest margin during the year increased to 3.21 per cent from 3.03 per cent last year. While non-interest income grew 26.03 per cent to Rs 964.62 crore from Rs 765.38 crore, fee-based income was up 34.06 per cent to Rs 107.52 crore from Rs 80.2 crore last year.

Reddy said the bank need not raise any capital now, as it had access to Rs 4,058 crore over three years. “The cost of funds would increase this financial year and the yields would drop,” the chairman said.

The board has recommended a dividend of 50 per cent for the year.

Malaysian JV
The lender’s joint venture (JV) with Bank of Baroda (BoB) and Indian Overseas Bank (IOB) has secured a licence to set up a banking subsidiary in Malaysia. The JV would need Rs 400 crore investment and take six months to become operational. Andhra Bank, which holds 25 per cent stake, would contribute about Rs 100 crore. BoB and IOB hold 35 and 45 per cent, respectively.