Andhra Bank’s net profit more-than-doubled to ₹185 crore in the fourth quarter ended March 31, 2015, compared with ₹88 crore in the corresponding quarter in the previous year.
“This was one of the best quarters we have ever seen with significant recovery of NPAs,” CVR Rajendran, Chairman and Managing Director, Andhra Bank, told newspersons here on Monday.
The increase in profit was driven, among other things, by a 44 per cent rise in net interest income. “The net interest margin grew higher than our expectations, leading to a significant increase in profits,” he said.
The NIM increased to 3.48 per cent from 2.65 per cent in the year-ago period. For the full year, net profit was up 46 per cent at ₹638 crore (₹436 crore).
Net non-performing assets decreased to 2.93 per cent from 3.11 per cent. Andhra Bank’s staff made special efforts to recover bad loans below ₹1 crore.
Of the ₹5,000 crore assets restructured during the year, ₹3,000 crore came in the fourth quarter with many infrastructure companies, among others, preferring to recast their loans.
On the NIM level for the present quarter and FY 2016, the CMD said it will be a challenge to maintain it at 3.48 but it could hover around 3 per cent.
In the current financial year, Andhra Bank will raise about ₹3,000 crore through tier-I and tier-II bonds depending on interest rates. “However, with 10.2 per cent capital-to-risk-weighted assets ratio, we are comfortable now,” he added.
It also plans to open over 300 branches, mostly outside Andhra Pradesh and Telangana, as part of its efforts to make it a pan-India bank.
The Andhra Bank scrip ended 1.47 per cent higher at ₹76 on the BSE on Monday.