The Hindu Business Line : Andhra Bank net profit up 21% at Rs 141 cr

Buoyant quarter: Mr K. Ramakrishnan (left), Chairman and Managing Director, Andhra Bank, with Mr Kalyan Mukherjee, Executive Director, addressing presspersons in Hyderabad on Monday. —

Our Bureau

Hyderabad, July 30 Andhra Bank’s net profit increased by 21.2 per cent to Rs 141 crore in the first quarter ended June 30, 2007 from Rs 116.41 crore in the comparable quarter last fiscal.

Total business grew by 24.8 per cent to Rs 68,466 crore from Rs 54,852 crore.

“By all parameters, we have done well in the quarter. The operating profit increased 18.2 per cent to Rs 223 crore (Rs 188.97 crore),” Mr K. Ramakrishnan, Chairman and Managing Director, told newspersons here on Monday.

Loans and advances went up by 27.13 per cent to Rs 27,707 crore. Total deposits increased to Rs 40,759 crore (Rs 33,058 crore) marking an increase of Rs 23.3 per cent. Low cost deposits increased to Rs 13,624 crore (Rs 12,466 crore).

During the quarter, the yield on advances increased to 10.75 per cent showing an increase of 111 basis points over June 2006.

Credit deposit ratio was at 68.27 per cent compared with 66.27 per cent in the first quarter of last fiscal.

Gross non-performing assets (NPAs) increased to Rs 420.73 crore (Rs 417.04 crore).

“This marginal growth in NPAs was common and unavoidable as our business is expanding. Our net NPAs stood at Rs 51.17 crore, representing 0.19 per cent of net advances,” he said.

The gross NPAs in the housing segment at 1.1 per cent did not show much deviation from the comparable quarter last year. The CRAR (capital-to-risk-weighted assets ratio) stood at 12.49 per cent at the end of the quarter as against the RBI norms of 9 per cent and the return on average assets improved to 1.22 per cent from 1.2 per cent in the first quarter of previous year.

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