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Friday, May 3, 2013

Andhra Bank’s Q4 net up 1.5% at Rs 345 crore

Andhra Bank’s net profit increased 1.5 per cent at Rs 345 crore in the fourth quarter ended March 31, 2013 compared with Rs 340 crore in the same period last year.

Total income grew 15 per cent at Rs 3,713 crore (Rs 3,229 crore). Deposits and advances grew at 17 per cent and 18.4 per cent respectively while net interest margin was in the range of 3.04 per cent.

Profit came under pressure due to provisions for new non-performing assets, wage settlements and pension, its Chairman and Managing Director, B.A. Prabhakar told news-persons here on Thursday.

The net NPAs increased to 2.45 per cent from 0.91 per cent previous year due to some slippages in the corporate segment, he said.

Non-corporate credit

For the financial year 2012-13, net profit declined to Rs 1,289 crore from Rs 1,345 crore in the previous year.

“Last year’s environment was not conducive for growth. We focused on non-corporate credit growth, which is not vulnerable to economic shocks,” he said adding that agriculture, MSME and retail would be focus areas for bank.

“We will contain corporate credit and avoid project-based funding,” Prabhakar said.

The operating profit would be better in the current quarter due to an expected credit growth at 18 per cent and increase in other come due to continued good performance by the treasury, he added.

The net interest margin could be around 3 per cent for FY14 with a targeted business growth of 20 per cent.

The bank plans to open 200 new branches this year. Last year, it opened 160 branches. It will recruit 2,400 officers and clerks this year.

Andhra Bank’s scrip gained 2.19 per cent on the Bombay Stock Exchange on Thursday to end at Rs 93.20.

Source: thehindubusinessline


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