Andhra Bank Q4 profit doubles to Rs185.2 crore
The profit comes on the back of strong net interest income and lower provisioning
Hyderabad: Public sector Andhra Bank on Monday said net profit for the fourth quarter more than doubled to ₹ 185.2 crore from ₹ 88.1 crore a year ago, driven by strong net interest income and lower provisioning.
Interest and non-interest income combined grew 15.8% to ₹ 4699.16 crore, compared to ₹ 4057.9 crore during the same period last year.
For the full year ended March, net profit rose 46.57% to ₹ 638.44 crore, while interest and non-interest income combined rose 14.32% to ₹ 17,868.45 crore.
Net interest income during the quarter grew 44.4% to ₹ 1,371.2 crore from ₹ 949.8 crore from the year-ago period.
Net interest income is the difference between interest earned and interest paid.
Provisions during the quarter fell 11% to ₹ 633 crore and provisions towards non-performing assets dropped 25.9% to ₹ 494 crore with the provision coverage ratio at 58.93% as of March.
The gross non-performing assets (NPA) stood at 5.31% or ₹ 6,876.54 crore in the fourth quarter compared to 5.29% or ₹ 5,857.6 crore in the same quarter last year.
Net NPAs dropped 18 basis points to 2.93% in the three-month period.
Other income jumped 30% year-on-year to ₹ 437.40 crore.
Retail loans like home loans, car loans and gold loans helped Andhra Bank post overall credit growth of 17.1%, despite muted growth in agriculture loans.
Andhra Bank said it is planning to raise around ₹ 3,000 crore in tier 1 and tier 2 capital through issue of bonds in the current financial year.
Shares of Andhra Bank gained 1.47% to close at ₹ 76.05 on BSE, while the benchmark Sensex declined 0.95% to end 27,176.99 points.
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