The Hindu Business Line : Andhra Bank net falls on lower trading income

ANDHRA Bank has reported lower net profit of Rs 93.54 crore for the third quarter of the current financial year as against Rs 136.98 crore for the second quarter.

Briefing reporters after the bank's board meeting, the Executive Director, Mr R. Balakrishnan said, "The fall in profits was due to lower trading incomes." The bank's total income for the period under review, fell to Rs 664.85 crore in the third quarter as against Rs 770.39 crore in the second quarter; in the corresponding quarter of the previous year, total income was Rs 728.67 crore. Other income fell to Rs 111.60 crore from Rs 171.90 crore in the corresponding period in the previous year. Interest on advances also dropped due to low credit offtake and the fall in interest rates. Interest income from advances dropped to Rs 302.42 crore from Rs 311.31 crore in the second quarter. Interest on investments, however, increased to Rs 243.38 crore from Rs 242.27 crore. The bank managed to bring down total expenditure to Rs 481.59 crore from Rs 499.50 crore in the second quarter, driven by the fall in interest expenditure to Rs 316.73 crore from Rs 356.09 crore in the third quarter of the previous year.

Mr Balakrishnan said the reduction was effected by shifting to lower cost liabilities in view of the slow growth in credit offtake. Operating expenditure during the period was also cut to Rs 165 crore from Rs 175.75 crore in the second quarter.The bank made a lower provision in view of the low net non-performing assets at 1 per cent of the net advances. Provision was just Rs 25.22 crore in the third quarter from Rs 71.91 crore in the second quarter.

More Stories on : Financial Performance | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee steady

Some forex pile under external managers

Steady rise in NRI remittances

Insurance-model disaster solution from Comsat Max

Infosys in Philippines deal

`Tech must aid banks growth'

LIC Housing net up at Rs 45 cr; to hike equity

Credit offtake lifts IOB net 57 pc

Andhra Bank net falls on lower trading income

Dena Bank Q3 net up at Rs 71.85 cr

Inflation may not attain downward bias: RBI

`India merits higher rating'

FDI inflow slowed during last fiscal: RBI report

Hudco okays Rs 4,680-cr loans in nine months

ECGC equity base hiked to Rs 800 cr

SBT mulls bonds issue by March