Andhra Bank reported an 8 per cent dip in net profit during the third quarter ended December 31, 2011, at Rs.303.17 crore against Rs.330.91 crore in the corresponding period of the previous year.
The dip has been attributed to heavy provisioning and restructuring of corporate accounts. Total income rose by 36.1 per cent to Rs.3,158 crore.
Total business during the nine months ended December 31, 2011, stood at Rs.1.77-lakh crore, recording a year-on-year growth of 20.4 per cent over Rs.1.47-lakh crore. Announcing the results, Chairman and Managing Director B. A. Prabhakar said the gross NPAs ratio was 2.38 per cent while the net NPAs 1.21 per cent.
The bank witnessed reversal of trend in the NPAs following recovery of Rs.480 crore. A target of Rs.500 crore was set for the current quarter and the bank had touched Rs.140 crore in January.
“We anticipate restructuring during the fourth quarter too, but not of this magnitude,” he said. Net interest margin was likely to be under pressure for the current quarter with a downward risk of 15-20 basis points.
Corporation Bank
The net profit of Corporation Bank for the third quarter ended December 31, 2011, was Rs.402.22 crore against Rs.382.42 crore in the year-ago period, an increase of 5.2 per cent.
The small increase in profit was mainly due to higher provisioning towards bad debts, investment depreciation and restructured accounts, the bank said in a release.
Total income was up 39 per cent at Rs.3,804 crore.
Total deposits increased to Rs.126,607 crore from Rs.98,526 crore on December 31, 2010, a growth of 28.5 per cent year-on-year, the release added.
Tube Investments
The directors of Tube Investments of India have declared an interim dividend of Rs.2 per share for 2011-12. Sales for the quarter ended December 31, 2011 were higher by 17 per cent at Rs.875 crore against Rs.749 crore. The net profit has dropped to Rs.27 crore from Rs.52 crore.
L. Ramkumar, Managing Director, said in a release that the bicycles division had registered a growth in volume and revenue over the corresponding period in the previous year.
However, growth in the auto sector dropped for the second consecutive quarter, particularly in the passenger car segment.
