State-owned lender Andhra Bank on Saturday said its net profit for the quarter ended June 30, 2015, grew by 89 per cent to Rs.203 crore on the back of low deposit cost.
Net profit during the same quarter during last year was at Rs.107 crore.
Bank’s total income increased by 7.7 per cent to Rs.4,529 crore during the quarter under discussion against Rs.4,205 crore in Q1 of FY 15, said Andhra Bank Executive Director Satish Kumar Kalra in a press conference.
“Our cost of deposit has gone down substantially by 40 basis points during the quarter. That is the major savings on the expanses. Cost of deposit has come down to 7.46 per cent from 7.86 per cent. We are also not taking any bulk deposits with high interest cost and our CASA (Current Account and Savings Account) has also improved,” Mr. Kalra said.
Bank’s total business grew by 6.7 per cent to Rs.2,79,226 crore during the first quarter against Rs.2,61,708 crore during the corresponding quarter last year.
Non-performing Assets (NPA) have gone down to 2.99 per cent from 3.89 per cent while net Interest margin( NIM) grew to 2.87 per cent in Q1 from 2.14 per cent during the first quarter of last fiscal, he said.
Replying to a query he said they are confident of maintaining three per cent NIM during the current fiscal.
He said the bank has plans to raise Rs.3,000 crore capital in the current year via various routes such as QIP, FPO and tier-I or II bonds.
He, however, said as of now the bank’s liquidity position is strong and does not need any capital immediately. — PTI
IOB profit down PSU lender Indian Overseas Bank has reported a significant fall of 94 per cent in its net profit at Rs.15 crore for the quarter ended June 30, 2015 when compared with Rs.272 crore in a year-ago period, on the back of 19 per cent decline in operating profit and sharp rise in provisioning.
The bank’s operating profit was lower at Rs.556 crore when compared with Rs.686 crore in Q1 of previous fiscal. Provisions and contingencies were significantly higher at Rs.664 crore as against Rs.299 crore in a year-ago period.
Interest income grew marginally to Rs.6137 crore as against Rs.6007 crore. Net interest income, the difference between interest earned and interest expended, fell to Rs.1,329 crore from Rs 1427 crore. However, other income grew sharply to Rs.535 crore when compared with Rs.278 crore in a year-ago period.
Gross advances stood at Rs.174,962 as against Rs.177,309 crore as on June 30, 2014. The bank’s asset quality continued to be under stress with rising bad debts.
Gross NPA (non-performing assets) ratio increased to 9.40 per cent as of June 30, 2015 from 8.33 per cent in March 2015 and 5.84 per cent as of June 30, 2014. Net NPA stood at Rs.10,640 crore as against Rs.6644 crore in the year-ago period with net NPA ratio of 6.31 per cent as of June 30, 2015 (3.85 per cent in Q1 of 2014).
Total deposits grew to Rs.232,064 crore when compared with Rs. 221,879 in the year ago period. Provision coverage ratio stood at 50.79 per cent of June 30, 2015. — G. Balachandar
Havells’ profit stays flat Electrical goods maker Havells India’s standalone net profit remained flat at Rs.107.37 crore in the first quarter ended June 30, on account of weak macroeconomic conditions.
Havell’s reported a net profit of Rs.107.27 crore during the same period of previous fiscal. Net sales of the company declined marginally by 0.70 per cent to Rs.1,258.1 crore for the April-June quarter compared with Rs.1,267.05 crore during the same period last year, Havells India said in a BSE filing.
“The macroeconomic environment has been in a stalemate for last few quarters and the slowdown continues to impact our growth,” said Havells India, Chairman and Managing Director, Anil Rai Gupta.
On outlook, he said: “While the market seems to be showing some signs of revival, our focus would be on maintaining profitability, cost rationalisation, strengthening of our dealer network and brand building initiatives.”
The company has expectations from LED and solar lighting segments in which Havells had ventured during the quarter after acquiring 51 per cent stake in Promptec Renewable Energy Solutions.
“We are confident that the expected uptick in demand in consumer business and government’s push for LED and Solar lighting solutions will boost the market sentiment and help in achieving growth for the business,” he said. — PTI
Pfizer net up 43 % Drug maker Pfizer on Saturday posted a 43.43 per cent rise in its net profit at Rs.53.83 crore for the first quarter ended June, 30, 2015. The company had posted profit of Rs.37.53 crore a year earlier.
Net sales rose to Rs.479.20 crore for the said quarter compared with Rs.431.03 crore in the year-ago quarter, Pfizer said in a filing to BSE.
The company said there has been a temporary impact on production at the Goa plant due to conciliation issues between the workers union and the management.
