Hyderabad-based public sector lender Andhra Bank reported
a sluggish 3% year-on-year rise in its second quarter net profit at Rs 327
crore in 2012-13. Net interest income (NII) or the difference between interests
earned and paid out, fell by 6% to Rs 894 crore. The reduction in NII ate way
its profit margin.
The bank expanded its loans by almost 16% y-o-y to Rs 85,300
crore. During the quarter, the credit quality however, eroded to a great extent.
Gross non-performing asset (NPAs) ratio rose sharply to
3.48% as against 2.72% in the previous quarter and 2.67% a year
back. Net NPA ratio worsened to 2.15% compared with 1.52% in April-June
quarter and 1.48% in September quarter in 2011-12. This suggests, the bank may
not have made full provisions against bad loans. Had it been the case, net NPAs
would have lower. Net NPAs are determined after deducting provisions from gross
NPAs.
Provisions against bad loans were down at Rs 139 crore in
Q2, FY13 from Rs 261 crore recorded in Q2, FY12. Provision coverage ratio was
53.15% as on September 30. Capital adequacy ratio was 12.39% versus 12.68% a
quarter back.
Deposits grew more than 15% y-o-y to Rs 1.09 lakh crore
surpassing RBI's projection of 15% growth for the entire industry in 2012-13.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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