Public sector firm Andhra Bank (AB) registered a year-on-year increase of 230 per cent in net profit at Rs 256 crore for the quarter ending June, 2009 compared with Rs 77.62 crore for the same period last fiscal. The Bank said that it has reduced the prime lending rate to 12 per cent from the existing 12.25 per cent, with effect from Saturday.
While the total business grew 26 per cent for the first quarter at Rs 105,280 crore as against Rs 83,256 crore, total deposits surged to Rs 60,369 crore from Rs 49,175 crore during the same period last fiscal.
“The focus is not on percentage increase, but actual business growth. We are working on several initiatives to maintain the momentum and increase loan disbursements, which is currently growing at about 14-15 per cent,’’said R S Reddy, Chairman & Managing Director, Andhra Bank. The bank’s total income increased by 37.64 per cent from Rs 1,266 crore to Rs 1,743 crore
whereas CASA deposits increased to 13.54 per cent to touch Rs 18,526 crore. The operating profit
for the quarter stood at Rs 348 crore and the gross NPAs as a percentage to gross advances reduced to 0.80 per cent from 1.15 per cent last year.
Sharing details regarding sectoral disbursements, Reddy said that retail credit increased by 29 per cent, while SME sector registered a robust growth by lending Rs 5,978 crores for the quarter ending June, 2009.
Meanwhile, the bank said it would rolling out insurance products in a joint venture partnership in July 2010 and the banking subsidiary in Malaysia with Bank of Baroda and Indian Overseas Bank is likely to be operational next year. “We are looking at a business mix of Rs 130,000 crore by March, 2010 and Rs 150,000 crore by September, 2010,’’ Reddy said.
–Agencies–