Andhra Bank net surges 339% on interest income

By: | Published: January 31, 2015 12:22 AM

Gross NPAs stood at 5.99% of the advances as of December 31, 2014, against 5.55% in December 31, 2013. Net NPAs stood at 3.7% in December quarter from 3.65% in the same quarter last year

Andhra Bank reported a 339% surge in net profit to Rs 202 crore in the third quarter from Rs 46 crore, on the back of higher interest income.

Total income rose from Rs 3,900.54 crore to Rs 4,540.61 crore, an increase of 16.4%. Besides, the bank plans to raise additional tier I capital of Rs 500 crore through issuance of 9.55% Basel-III compliant perpetual bonds by way of private placement.

Explaining the bank’s revenues, CVR Rajendran, CMD, said the interest income of the bank rose to Rs 4,150.34 crore in Q3-FY15 from Rs 3,597.64 crore in the corresponding third quarter of the last fiscal, which is an increase of 15.3%. “The cost of deposits has come down and there was an increase in advances which grew 15.7% from Rs 1,02,644 crore to Rs 1,18,763 crore,’” he said.

The bank’s provisions towards bad loans were kept at Rs 541.52 crore, up from Rs 428 crore in the year ago period. The gross Non-Performing Assets (NPAs) stood at 5.99% of the advances as of December 31 from 5.55% in December 31, 2013. Net NPAs stood at 3.7% in October-December 2014-15, from 3.65% in the same quarter a year ago. The gross NPAs stood at Rs 7,118 crore and the net NPAs stood at Rs 4,264 crore.

The restructured standard advances of the bank stood at Rs 10,843 crore, which is 9.71% of standard advances.

The bank’s priority sector advances grew 13.2% from Rs 37,487 crore to Rs 42,427 crore. While agricultural advances grew 5.8%, MSME advances improved by 16.9% and retail advances grew by 22.6%. While dismissing any merger plans by the bank, Rajendran said that the Casa deposits grew 18.5% to Rs 36,724 crore, the total deposits grew 7.9% from Rs 1,31,700 crore to Rs 1,42,078 crore. The businesses grew 11.3% from Rs 2,34,344 crore to Rs 2,60,841 crore.

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