Andhra Bank's net profit has increased 20.36 per cent at Rs 331 crore during the third quarter ended December 31, against Rs 275 crore in the year-ago period.
According to Mr. R. Ramachandran, Chairman and Managing Director, a strong 44 per cent growth in net interest income (NIN), beneficial lag-affect of deposits collected earlier and an efficient management, among others, were the key drivers for increase in net profit.
The total business stood at Rs 147,682 crore, registering 25.26 per cent growth. Operating expenses had gone up at Rs 169 crore, including employee costs. Earnings per share stood at Rs 6.82 (Rs 5.68).
Non-performing assets had grown to 0.47 per cent (0.17 per cent) due increase in NPAs in micro loans and MSME sectors.
NET INTEREST MARGIN
NIM improved to 3.91 per cent (3.85 per cent). However, in the current quarter, NIM ‘could be hit' due to increase in cost of funds. There could be a negative impact of 10-20 basis points.
The capital to risk weighted assets ratio stood at 12 per cent. There could be Rs 1,200 crore capital infusion by the Government in Andhra Bank during the next fiscal year.
MFI LENDING
Andhra Bank, which had Rs 293 crore outstanding loans from MFIs, would go by the new collecting approach to be adopted by banks while lending to MFIs. At present, there were no requests for restructuring of loans from MFIs.
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