The Hindu Business Line : Andhra Bank Q4 net down on higher provisioning

HIGHER provisioning in the fourth quarter of the financial year ended March 31 has led Andhra Bank to record a lower net profit during this period at Rs 114.30 crore as against a net profit of Rs 140.59 crore in the corresponding quarter in the previous fiscal.

The Hyderabad-based lender doubled its provisioning to Rs 66.52 crore in the fourth quarter, as against Rs 32.91 crore in the corresponding quarter in the previous fiscal.

The board of directors of the bank has declared a final dividend of 14 per cent in addition to the interim dividend of 14 per cent, taking the total dividend to 28 per cent. The total dividend payout will work out to Rs 118 crore, said Mr R. Balakrishnan, Executive Director, Andhra Bank, addressing a press conference here on Thursday.

During the fourth quarter, total income of the bank was lower at Rs 712.02 crore (Rs 788.72 crore). This is inclusive of interest earned which was lower at Rs 550.05 crore (Rs 558.43 crore) and other income at Rs161.97 crore (Rs 230.29 crore).

Total expenditure was lower at Rs 489.12 crore (Rs 573.22 crore). This is inclusive of interest expended at Rs 317.73 crore (Rs 381.56 crore) and operating expenses at Rs 171,39 crore (Rs 191.66 crore).

For the financial year ended 2003-04, Andhra Bank recorded a 15 per cent growth in net profit at Rs 463.50 crore (Rs 402.99 crore). ``Profit growth was churned by reducing the cost of funds and by growing the bank's credit portfolio,'' said Mr Balakrishnan.

Advances have grown to Rs 13,384 crore in the financial year ended March 31,2004, as against Rs 11,899 crore in the previous year. Total deposits grew to Rs 22,940 crore (Rs 21,061).

Capital adequacy ratio was at 13.71 per cent (13.62 per cent).