Andhra Bank Q4 net doubles to Rs 185cr; plans Rs 3,000cr bonds

Andhra Bank today said its net profit more than doubled to Rs 185.24 crore in the fourth quarter of last fiscal on account of higher yield on advances and low cost of deposits.
It had posted net profit of Rs 88.08 crore in the January- March period of 2013-14 financial year, C V Rajendran, Chairman and managing director of the public sector bank told reporters here.
The bank's total income during the fourth quarter of 2014-15 rose to Rs 4,699.16 crore, from Rs 4,057.89 crore in the year-ago period.
"This is one of the best quarters we have had in the recent months. Cost of deposits has come down by 33 basis points and at the same time yield on advances has grown by 67 basis points. Both have contributed to higher Net Interest margin translating into higher net profit," the banker said.

Replying to a query, he said the bank may raise Rs 3,000 crore capital via Tier-I and II bonds in the current financial year. He however, said it would depend on the rate of interest.
The bank raised Rs 500 crore Tier-I capital through perpetual bonds last year at 9.55 per cent.

"We are looking at 9 per cent and below for the bonds (Tier I and II) we are planning this fiscal," he added.
The non-performing assets or NPAs during the quarter were down to 2.93 per cent, from 3.11 per cent last year.
Andhra Bank reported an annual net profit of Rs 638.44 crore compared with Rs 435.58 crore in the last fiscal year.

Total income of the bank during the fiscal rose to Rs 17,868.45 crore, from Rs 15,630.16 crore in 2013-14.
Andhra Bank plans to open 300 branches during the current financial year. It has over 2,500 branches across the country.
Rajendran said the total network is expected to be 3,600 branches in the next three years.