For FY14, Andhra Bank reported fall in its net profit to Rs436 crore due to 2.3 times higher provisions and increasing NPAs
Andhra Bank Ltd reported lower net profit in FY2013-14 due to increasing non-performing assets (NPA) and provisions.
For the 12 month to end-March, the public sector lender said its net profit fell 66% to Rs436 crore from Rs1,289 crore, even as its total revenues, including interest income, grew 12% to Rs15,630 crore from Rs13,957 crore, a year ago period.
During FY14, Andhra Bank said its net interest margin (NIM) stood at 2.65% compared with 2.76% a year ago period, while its other income grew 27.3% to Rs1,333 crore.
During FY14, the lender made a provision of Rs2,026.51 crore, 2.3 times (103% more) higher from Rs996.16 crore, a year ago period. Its provisions coverage ratio stands at 52.55% as on 31 March 2014. It also made provision of Rs99.75 crore for pending settlement of the proposed wage revision effective from November 2012.
As on 31 March 2014, Andhra Bank's gross non performing assets (GNPA) increased 58% to Rs5,857.60 crore from Rs3714.49 crore while its GNPA ratio stood at 5.29% from 3.71% a year ago. Its net NPA increased 39% to Rs3,342.47 from Rs2,409.17 crore, while is NPA ratio stood at 3.11% from 2.45% a year ago period.
As on 31 March 2014, total advances of Andhra Bank increased 10.5% to Rs1.10 lakh crore while Andhra Bank's deposits during the year increased 14.6% to Rs1.41 lakh crore compared with same period a year ago.
Andhra Bank's current account saving account (CASA) deposit grew 10.8% to Rs35,186 crore as on 31 March 2014. Its CASA share in total deposit stands at 24.8%. Andhra Bank's capital adequacy ratio (CAR) stood at 10.78%.
For the quarter to end-March, Andhra Bank said its net profit fell 74% to Rs88 crore from Rs344 crore, while its total revenues including interest income grew 9% to Rs4,058 crore from Rs3,713 crore, same period last year.
During December quarter, Government of India has subscribed to 3 crore shares of Andhra Bank having face value of Rs10 each at premium of Rs56.59 per share aggregating to Rs200 crore through preferential allotment. As a result government (promoters) shareholding in Andhra Bank increased to 60.14% from 56% a year ago period.
Andhra Bank has paid an interim dividend of Rs1.10 per share during January 2014.
Andhra Bank closed Monday marginally up at Rs65.20 on the BSE, while the 30-share Sensex ended the day 2.2% higher at 23,494.
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