Committee to meet next week to take a call on rate hike

The net profit of Andhra Bank has increased to Rs. 320.41 crore in the quarter ended June 30, 2010, from Rs. 256.22 crore in the year-ago period, a rise of 25 per cent.

Announcing the quarterly results here on Thursday, Chairman and Managing Director R. S. Reddy said total business grew by 25 per cent from Rs. 1,05,822 crore in June 2009 to Rs. 1,31,844 crore in June this year.

Net interest income rose by 67 per cent to Rs. 736.25 crore from Rs. 441.37 crore, while the net interest margin moved up to 3.72 per cent from 2.85 per cent.

The operating profit recorded a growth of 47 per cent and stood at Rs. 510.40 crore against Rs. 348 crore.

Andhra Bank's deposits increased to Rs. 74,700 crore from Rs. 60,911 crore, reflecting a year-on-year growth of 22.64 per cent. CASA (current account savings account) deposits stood at Rs. 22,089 crore (Rs. 18,646 crore). The advances rose to Rs. 57,144 crore from Rs. 44,911 crore.

Mr. Reddy said priority sector advances improved to Rs. 19,203 crore from Rs. 15,594 crore. Agricultural advances went up to Rs. 8.875 crore from Rs. 6.911 crore.

Asked whether the bank proposed to increase the rates, he said the bank's committee would meet next week to take a call on the issue.