Andhra Bank posts net profit of Rs 52 cr in Q1; total income grows 6.77%

Andhra Bank has ended a series of loss making quarters with a small net profit of Rs 52 crore for the quarter ended June 2019 as compared with a net loss of Rs 540 crore in the corresponding first quarter of the previous financial year, helped by reduced provisioning and improved net interest margin during the quarter.

Total income of the bank for the quarter under review grew 6.77 per cent to Rs 5,437 crore as compared with Rs 5,092 crore in the corresponding previous quarter.

The bank's improved balance sheet for the quarter has come on the back of 35.67 per cent decline in provisioning and contingencies, which came down to Rs 1,176 crore from Rs 1,748 crore in the year ago period. The gross NPA non performing asset (NPA) ratio was slightly lower at 16.44 per cent. However, the net NPAs for the quarter showed a decline of more than 200 basis points at 5.67 per cent as compared to 7.96 per cent in the corresponding quarter of the previous year.

The bank's total business grew 9.22 per cent at Rs 33,503 crore during the quarter and in that the advances registered a 12.31 per cent growth at Rs 19,751 crore while deposits increased by 6.78 per cent to Rs 13,753 crore. Net interest income stood at 3.13 per cent as compared to 2.94 per cent in the same quarter previous year.