Andhra Bank posted a net profit of Rs. 274 crore in the second quarter of 2009-10 as against Rs.162 crore in the corresponding period in the previous year, registering an impressive growth rate of 70 per cent.
Disclosing the financial results to media persons here on Wednesday, Andhra Bank Chairman and Managing Director R. S. Reddy said the bank achieved a total business of Rs. 1,10,460 crore as on September 30, 2009, against Rs. 86,949 crore in the year-ago period, a growth of 27 per cent.
Total income rose to Rs. 1,791 crore in the quarter under review from Rs. 1,455 crore and the current account savings account (CASA) deposits stood at 32.34 per cent of total deposits.
The operating profit went up to Rs. 453 crore from Rs. 278 crore. Total deposits rose to Rs. 62,279 crore (Rs. 50,511 crore) and the credit deposit ratio improved to 77.7 per cent from 72.28 per cent. Attributing the good performance to improved return on assets, decline in the cost of deposits, improvement in credit delivery and optimisation of employee cost, Mr. Reddy said the bank was confident of further growth.
About credit given to various sectors, he said finance to agricultural sector gone up to Rs.7,482 crore from Rs.5,938 of last second quarter, retail credit registered robust growth of Rs.7,149 crore at 34.7 per cent and lending to MSME sector reached Rs.6,835 crore, registering 52 per cent growth.
Mr. Reddy said a target was set to achieve a business growth of 30 per cent to reach Rs.1,30,000 crore by the end of the current fiscal.