Andhra Bank in the red, posts ₹2,536 crore loss
Public sector lender Andhra Bank has reported ₹2,536 crore loss for the quarter ended March 31 on a standalone basis against a net profit of ₹35 crore registered in year-earlier period. The loss came in the backdrop of provisions for non-performing assets increasing to ₹5,562.76 crore compared with ₹1,171.58 crore in the year-earlier period. Interest income declined by 3.52% to ₹4,606 crore (₹4,774 crore) while the total income was lower by 6.12% at ₹5,093 crore (₹5,425 crore) during the quarter under review.
For the full fiscal, the bank reported a loss of ₹3,413 crore as against a net profit of ₹174 crore in 2016-17. Total income increased by a negligible 0.05% to ₹20,347 crore (₹20,336 crore) aided by a 2.77% increase in the non-interest income to ₹2,372 crore (₹2,308 crore). Interest income for 2017-18 stood at ₹17,975 crore, a decline of 0.29% from ₹18,027 crore of the previous fiscal.
Operating profit increased by 22.17% to ₹5,361 crore (₹4,388 crore). Gross NPAs during the fiscal rose 17.09% (12.25%), while net NPAs stood at 8.48% (7.57%).
The board of directors approved raising of capital by the bank, at an appropriate time, by way of issue of equity shares through QIP/follow-on public offer or such other securities permitted under applicable laws. Such capital raising would be subject to necessary approval/permissions.
The bank had, in the fourth quarter of 2017-18, allotted more than 32.60 crore equity shares of ₹10 each at a premium of ₹47.97 per share to the Government of India in respect of ₹1,890 crore capital infused. As a result, the government’s holding in the bank rose 77.99% from 69.77%.
Without mentioning the names of the borrowers or the sums involved, the note accompanying the results said: “In view of the fraud being reported during the year in respect of two gems and jewellery groups, the bank has classified such accounts of the groups as NPAs. [It has] fully provided for the entire funded exposure...”
As per a RBI direction on initiating solvency process — provisioning norms, Andhra Bank, in respect of 22 identified NPA accounts covered under the provisions of Insolvency and Bankruptcy Code 2016, provided an additional ₹427.06 crore.
