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Andhra Bank Q2 net down 80 pc

November 12, 2016 12:00 am | Updated December 02, 2016 03:02 pm IST - HYDERABAD:

Bank makes higher provisioning for bad loans compared to last year

Public sector bank Andhra Bank has reported a net profit of Rs. 51 crore during the second quarter of the current financial year, ended September 30, marking a decline of close to 80 per cent over the Rs. 251 crore for the corresponding period previous fiscal.

The bank has attributed this drop to increased provisioning of Rs. 956.81 crore for bad loans during the second quarter, 82 per cent higher than the Rs. 524.86 crore provided in the same period last year, Andhra Bank said in a BSE filing.

The gross non-performing assets jumped to 11.49 per cent at the end of the second quarter against 5.71 per cent in the same period last fiscal. The gross NPAs of the bank stood at Rs. 16,263 crore against Rs. 7,470 crore.

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The net NPAs during the period too increased to 6.99 per cent at Rs. 9,411 crore as compared to 2.95 per cent (Rs. 3,750 crore) in the same period last fiscal.

The provision coverage ratio of the bank at the end of the second quarter stood at 50.41 per cent against 63 per cent during the same period last fiscal. The business grew by 7.5 per cent from Rs. 2.96 lakh crore to Rs. 3.19 lakh crore.

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