Andhra Bank net falls 15% on higher provisioning

Written by fe Bureau | Hyderabad | Updated: Jan 25 2013, 05:59am hrs
Andhra Bank has reported 15.2% fall in net profit to R257.09 crore due to higher provisioning for bad loans against R303.17 crore registered in the same period a year ago.

Provisions against bad loans jumped up to R285 crore as against R139.5 crore in the last quarter. Total income of the bank increased to R3,469.21 crore in October-December period, from R3,158.26 crore over the same quarter last year, representing a growth of 9.8%.

The net interest income went down by 2.3% to R961.4 crore from R984 crore during the same period. The gross NPA at the end of December were at 3.66%, and the net NPAs as a proportion of net customer assets were at 2.29%. The net NPAs of the bank rose to 2.29% of the total advances as of December 31, from 1.21% a year ago. In absolute terms, the net NPAs stood at R2,023.32 crore in the December quarter, against R943.27 crore in year-ago period, BA Prabhakar, CMD, said.

The net interest margin (NIM) stood at 3.35% and the cost of deposits stood at 7.77%. The capital adequacy ratio (CAR) stood at 11.88%, down by 51 basis points compared with 12.39% q-o-q.