Andhra Bank has reported a growth of 3.2 per cent in its net profit during the second quarter ended September 30, 2012, to Rs.326 crore from Rs.316.12 crore in the year-ago period.
Chairman and Managing Director B. A. Prabhakar attributed the almost flat performance to higher deposit costs, slower credit offtake and stressed assetsThe net profit during the first-half declined to Rs.687 crore from Rs.702 crore.
Addressing a press conference here on Tuesday, he said total income during the second quarter grew by 15.5 per cent to Rs.3,418 crore. Net interest income dipped to Rs.894 crore due to reversals in interest of non-performing loans and restructured accounts. The bank saw a slippage in gross non-performing loans to the tune of Rs.1,000 crore.
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Replying to queries, he said the bank’s exposure to the media company Deccan Chronicle Holdings was to the tune of Rs.200 crore, but it would become due after November 30. The bank would initiate steps to recover after the due date, Mr. Prabhakar said adding it would take some time to recover in the case of large firms.
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Rise in NPAs
Gross NPAs increased to Rs.3,013.79 crore (3.48 per cent) during the quarter from Rs.1,987.07 crore (2.67 per cent) in the year-ago period. Cost of deposits rose from 7.45 per cent to 8.03 per cent.