Andhra Bank profit doubles to Rs 144 cr

Written by fe Bureau | Hyderabad | Updated: Oct 31 2014, 06:09am hrs
Andhra Banks net profit more than doubled to R144.49 crore

in the quarter that ended September 30, 2014.

Higher income from retail-banking operations helped the bank increase its net profit 104.5% y-o-y; it was R70.65 crore in the last fiscal. Total income increased from R3,817.57 crore to R 4,423.62 crore due to higher interest income and better yield on advances.

At the end of September 2014, gross non-performing assets (NPAs) of the bank were R6,884 crore and net NPAs R4,316 crore. CVR Rajendran, CMD, said Andhra Bank expected asset quality to improve substantially in the second half after recovery from agricultural loan waiver in the next two quarters from both Telangana and AP governments. Our major problem has come from the agricultural loan waiver announcements from Andhra Pradesh and Telangana, he said. The banks agriculture loan dues stood at R3,700 crore and R7,500 crore in Telangana and Andhra Pradesh, respectively.

The bank has recovered R2,000 crore of NPAs this year. About R1,000 crore of restructured accounts have been moved to NPA; that is why NPAs are up, he said. Priority sector advances of the bank stood at R42,131 crore, a 14.39% growth, and agricultural advances were R20,815 crore, up 15.19%.