Andhra Bank posted a profit of Rs. 275 crore during the third quarter ended December 31, 2009, a growth of 29.5 per cent over the previous year.

Announcing the results in the absence of Chairman R. S. Reddy at a press conference here on Monday, Executive Director Anil Girotra termed the bank’s performance in the three quarters as “stellar” with the profit zooming to Rs. 806 crore from Rs. 452 crore in the first nine months of the last financial year.

He attributed the growth in Q3 profit mainly to retail credit, which had jumped by 40.73 per cent, with major contribution from housing loans and non-agriculture gold loans.

Disbursement of housing loans was about Rs. 860 crore and gold loans had exceed Rs. 1,000 crore during the current fiscal year so far.

Another healthy achievement was the increase in total income by 14.73 per cent, but the increase in total expenditure was only 10.27 per cent. The bank had also launched India First Insurance Company jointly with Bank of Baroda and Legal and General of the U.K. and the new life insurance company had commenced operations earlier this month, Mr. Girotra said.

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