Andhra Bank registered a net profit of ₹144 crore in the second quarter ended September 30, a 103 per cent rise over the ₹70.65 crore recorded in the corresponding quarter last year.
The total income of the public sector bank was up 15.9 per cent at ₹4,424 crore (₹3,818 crore in the same period last year).
“The bank’s performance during the quarter was reasonably good given the external economic environment and constraints. We expect to perform much better in the second half of the year and hope to end the current financial year with a profit of ₹900 crore,” CVR Rajendran, Chairman and Managing Director, said. Addressing a press conference, the CMD said at the end of the quarter, gross non-performing assets (NPAs) were at ₹6,884 crore and net NPAs at ₹4,316 crore, with their ratios at 5.99 per cent and 3.86 per cent, respectively. The bank plans to add 400 branches during the current financial year to the current network of 2,185 branches.
Fund raising On the bank’s moves to augment funds, he said, “It was proposed to raise up to ₹1,000 crore through Tier I bonds in December-January. If this is completed, we may not have requirement for fresh capital.”
On the crop loan exposure in Telangana and Andhra Pradesh, he said Telangana has already paid 25 per cent of the ₹3,700-crore loan exposure. In the case of Andhra Pradesh, the Government has made arrangements for facilitating payments.