The Hindu Business Line : Andhra Bank Q4 net at Rs 139 cr

FOCUS ON FEE-BASED INCOME: Mr K. Ramakrishnan (left), Chairman, Andhra Bank, and Mr Kalyan Mukherjee, ED, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai , May 2

The net profit of Andhra Bank was nearly unchanged at Rs 138.59 crore for the fourth quarter of 2006 against Rs 138.77 crore in the corresponding period of the previous year.

Higher net interest income was offset by an increase in provisions and contingencies resulting in a flat net profit growth.

Total income for the fourth quarter was at Rs 867.28 crore, 18 per cent higher than the previous year's Rs 736.7 crore. Net interest income grew by 16.6 per cent to Rs 310.19 crore (Rs 266 crore). However, expenditure on provisions and contingencies increased to Rs 122.50 crore (Rs -9.05 crore). Other income fell by 4.6 per cent to Rs 144.09 crore (Rs 151.08 crore).

The bank has declared a dividend of 35 per cent for the financial year 2005-06.

Mr K. Ramakrishnan, Chairman and Managing Director, Andhra Bank, said that the bank was looking at equity trading to bolster treasury income, which has been drying up due to a bearish bond market.

The treasury income for the entire fiscal fell by 81.8 per cent to Rs 70 crore, from Rs 385 crore in the previous year. "We had higher treasury profits last year due to the sale of investments,'' Mr Ramakrishnan said.

Full year performance

Net profit for the entire fiscal dropped by 6.65 per cent to Rs 485.5 crore against Rs 520.1 crore. Total income increased marginally by 3.5 per cent to Rs 3133.51 crore (Rs 3028.67). The net interest income increased by 9.4 per cent to Rs 1,169.1 per cent against Rs 1,068 crore in the previous year. Other income dropped by 39 per cent to Rs 459.15 crore from Rs 753.35 crore.

Deposits up

Total deposits increased by 23.13 per cent to Rs 33,922 crore from Rs 27,551 crore. Gross bank credit increased by 25.54 per cent to Rs 22,484 crore (Rs 17,190 crore). Retail credit has risen by 35.94 per cent to Rs 2,436 crore (Rs 1,880 crore).

The cost of deposits remained the same at 4.86 per cent. Net NPAs were at 0.24 per cent (0.28 per cent), while the capital adequacy ratio increased to 14.11 per cent (12.11).

Mr Ramakrishnan said that the bank planned to set up a representative office in Dubai and was seeking permission from the Federal Reserve to expand in the US. He said that the bank would try to increase fee-based income in the next fiscal, particularly from the sale of life insurance for LIC and non-life insurance for United India Insurance Company.

Shares of the bank moved up by Rs 5 to Rs 85 in Tuesday's trade on BSE.

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