Andhra Bank’s net profit increased 74.3 per cent at Rs 251 crore in the second quarter ended September 30, 2015 compared to Rs 114 crore in the corresponding quarter of previous year.
Driven by 18 per cent growth in net interest income, total income grew by 7.2 per cent at Rs 4,744 crore (Rs 4,424 crore). Net Interest Margin (NIM) had improved from 2.93 per cent last year to 3.20 per cent. Andhra Bank expects the NIM for full year to hover around 3 per cent.
Better fund management, growth in advances and sound recovery of Non Performing Assets (NPAs), among others, had helped the bank to register `good’ performance, it’s Managing Director and CEO Suresh N Patel told newspersons at a press conference here on Saturday.
The gross and net NPAs declined to 5.71 per cent (5.99 per cent) and 2.95 per cent (3.86 per cent) respectively. The deposits and advances grew by 14.4 per cent and 13.9 per cent respectively. ``We are focussing on retail credit for quite some time. There has not been any growth in corporate credit,’’ Patel, who took over as MD & CEO early this week, said.
The Bank has received Rs 378 crore from the Government and also raised Rs 500 crore by way of tier II bonds.