The Hindu Business Line : Andhra Bank posts Rs 520-cr profit

AMID falling interest rates and treasury incomes, Andhra Bank has posted a net profit of Rs 520.1 crore for the fiscal 2004-05, registering a growth of 12.21 per cent over the previous fiscal. Its total business is up 25.15 per cent at Rs 45,461 crore.

"This is in spite of making an ad-hoc provision of Rs 101 crore towards the proposed wage revision and depreciation of Rs 153.25 crore on account of shifting statutory liquidity ratio securities from AFS/HFT category to HTM category," the Chairman and Managing Director, Mr T.S. Narayanasami, told reporters immediately after the board meeting here on Wednesday.

The board has recommended a final dividend of 15 per cent in addition to an interim dividend of 15 per cent, taking the total dividend for the year to 30 per cent.

The total non-interest income has shown a growth of 11 per cent at Rs 753.35 crore (Rs 678.04 crore). The net fee-based income to the total non-interest income for the year stood at 39.6 per cent, he said.

"We recorded a substantial growth of 105 per cent in terms of recovery in written-off accounts at Rs 64.75 crore (Rs 31.65 crore). At present, we have the lowest net NPAs in the industry. Our gross NPAs have come down to 2.46 per cent (Rs 441 crore) from 4.6 per cent (Rs 615 crore), while net NPAs were brought down to 0.28 per cent (Rs 49 crore) from 0.93 per cent (Rs 120 crore). According to the Executive Director, Mr R. Balakrishnan, apart from a continued focus on non-interest income streams, the bank proposes to step up focus on small and medium enterprisesSMEs, the trading segment and logistics for significant credit expansion, which would not only ensure better yields on advances, but also compensate the shortfall in treasury incomes.

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