Andhra Bank Q2 net profit up 74% at Rs 251 crore

Hyderabad: State-run lender Andhra Bank on Saturday said net profit for the September quarter grew by 74% to Rs 251 crore on the back of low deposit cost and higher net interest margin.

The bank’s net profit during the same quarter last fiscal was Rs 144 crore. “Bank’s total income increased by 7.2% to Rs 4,744 crore during the quarter under discussion against Rs 4,424 crore in the second quarter of the financial year 2015,” Andhra Bank MD and chief executive Suresh N Patel told reporters here.

“Our cost of deposit has gone down and even bulk deposits, which used to have a high rate of interest have come down during the quarter. Advances growth is also reasonably good. All these have given yield,” Patel said.

Total business grew by 14.2% to Rs 2,96,894 crore during the second quarter as against Rs 2,60,012 crore during the corresponding quarter last year.

Non-performing assets (NPA) have gone down to 2.95% from 3.86% while net interest margin (NIM) grew to 3.04% in the second quarter from 2.54% last fiscal, he added.

Replying to a query, he said they are confident of maintaining 3% NIM during the current fiscal.

The bank has received Rs 378 crore capital from the centre and raised Rs 500 crore through tier-II bonds during the year, Patel added.