Andhra Bank has reported a 10.6 per cent rise in its net profit at Rs.303 crore in the second quarter ended September 30, 2010, against Rs.274 crore in the corresponding period in the previous year. The operating profit has improved to Rs.565 crore from Rs.453 crore. Net interest income has increased by 52 per cent to Rs.783 crore from Rs. 515 crore.
Total business increased to Rs.1.39 lakh crore from Rs.1.10 lakh crore, a growth of 26 cent.
Deposits reached a level of Rs.78,584 crore with a year-on-year growth of 26 per cent against Rs.62,279 crore.
Advances increased to Rs.61,020 crore from Rs.48,182 crore. Announcing the results here on Thursday, Andhra Bank Chairman and Managing Director R. Ramachandran said the gross NPAs to gross advances ratio stood at 1.26 per cent and the NPAs in absolute terms were Rs.770 crore with MSMEs and large and medium corporate loans contributing the major chunk of them. “There is, however, no significant or alarming growth in the NPAs,” he said.
He attributed the significant rise in the net interest income and net interest margins to the increase in the interest rates in two phases and these were set to have an impact on the bank's NII and NIM in due course.
Keywords: Andhra Bank