The Hindu Business Line : Andhra Bank Q2 net rises to Rs 146.4 cr

Andhra Bank has achieved a total business of Rs 56,113 crore during the second quarter of current fiscal ended September 2006, which translates into a growth of 14.47 per cent over Rs 49,021 crore in the corresponding quarter of previous fiscal.

While gross bank credit has improved by 23.22 per cent to reach Rs 23,600 crore from Rs 19,152 crore, the total deposits could grow only by 8.85 per cent to Rs 32,513 crore (Rs 29,869 crore), its Chairman and Managing Director, Mr K. Ramakrishnan, told newspersons here on Thursday.

Explaining the slowdown in deposits growth, he said the bank discouraged bulk deposits and focussed more on retail deposits to reduce cost of deposits and improve net interest margin. As a result, it could register a growth of 20.71 per cent in its low-cost deposits at Rs 12,941 crore from Rs 10,721 crore in the corresponding quarter of previous fiscal.

For the quarter under review, the bank posted an interest income of Rs 772.09 crore (Rs 635.31 crore), a growth of 21.52 per cent, total income of Rs 900.75 crore (Rs 753.23 crore), up by 19.58 per cent, operating profit of Rs 223.09 crore (Rs 200.51 crore), an increase of 11.26 per cent, while net profit rose 10.19 per cent to Rs 146.44 crore (Rs 132.89 crore).

For the first half of current fiscal, Andhra Bank reported a net profit of Rs 262.85 crore (Rs 218.06 crore), registering a growth of 20.54 per cent, while total income has grown up by 21.75 per cent to Rs 1,762.49 crore (Rs 1,447.66 crore).

During the period under review, the bank reduced its gross non-performing assets (NPAs) to Rs 416 crore (1.76 per cent) from Rs 435 crore (2.27 per cent), while net NPAs were brought down to Rs 23 crore (0.10 per cent) from Rs 48 crore (0.26 per cent). The bank improved its net interest margin to 3.84 per cent from 3.66 per cent.

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