Business Daily from THE HINDU group of publications
Tuesday, May 01, 2007
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Business Daily from THE HINDU group of publications Tuesday, May 01, 2007 ePaper |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks Andhra Bank full-year net up 11% at Rs 538 cr Our Bureau
THE CHAIRMAN and Managing Director of Andhra Bank, Mr K. Ramakrishnan (left), with the Executive Director, Mr Kalyan Mukherjee, at a press conference in Hyderabad on Monday. — Satish H
Hyderabad April 30 Increased provision for taxes had a stagnating impact on the net profit of Andhra Bank, which posted a net profit of Rs 138.77 crore in the fourth quarter of the fiscal ended March 31, 2007, against Rs 138.59 crore in the comparable quarter of 2005-06. However, the total income increased over 30 per cent to Rs 1,108.33 crore (Rs 850.21 crore). "The fourth quarter performance is not indicative of any downtrend; Rs 76 crore provision for taxes prevented the increase in the net," Mr K. Ramakrishnan, Chairman and Managing Director, Andhra Bank, told newspersons at its annual press conference here on Monday. For the financial year 2006-07, the bank's net profit increased 10.79 per cent to Rs 537.9 crore (Rs 485.5 crore). The operating profit grew 21.08 per cent to Rs 931.24 crore (Rs 769.11 crore). "Our operating profit would have increased by 30 per cent except for the fact that we had to show amortisation of expense (Rs 75 crore) as a reduction following RBI's directive," Mr Ramakrishnan said. The total income had grown 20.11 per cent to Rs 3,762 crore against Rs 3,132 crore for March 2006. The interest income increased by 23.97 per cent to Rs 3,315.33 crore (Rs 2,674.37 crore). "We are strong in fundamentals. The net interest income increased to Rs 1,417.54 crore from Rs 1,168.98 crore marking a growth of 21.26 per cent," he said. The bank's business increased to Rs 69,687 crore (Rs 56,406 crore), marking 23.55 per cent growth. While the credit grew by 25.57 per cent, the net NPA stood at 0.17 per cent (Rs 47.25 crore) of net advances, he added. The capital adequacy ratio was at 11.33 per cent against the RBI norm of 9 per cent and the EPS stood at Rs 11.09. For the current fiscal, Andhra Bank targets 18 per cent and 22 per cent growth in deposits and credit respectively.
Jt venture with BoB, PNB
Keen on going global, Andhra Bank had entered into a joint venture with Bank of Baroda (BoB) and Punjab National Bank (PNB) to set up a bank in Malaysia. "We will take 25 per cent stake in the joint venture which would be formed as a separate bank in Malaysia. The BoB would lead the initiative with a majority stake of 40 per cent followed by PNB with 35 per cent stake," Mr Ramakrishnan said . Refusing to give any specific time frame and quantum of capital for the new entity, he said BoB was taking care of applying for licences and completing other procedures. On its own, Andhra Bank has received permission from the RBI for opening representative offices in New Jersey, Kuwait and Riyadh. It was waiting for approvals from the host countries.
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