Andhra Bank Q4 net rises 8.6 pc to Rs 340 crore

MUMBAI: Public sector lender, Andhra Bank today posted a 8.6 percent rise in net profit at Rs 340 crore in the fourth quarter of last financial year on the back of rise in its core income.

Net profit of the bank was Rs 312.78 crore during the same period last year.

Total income of the bank rose by 21.3 percent to Rs 3,229 crore during the January-March period of FY12.

"Despite a challenging economic environment, we have seen growth in our net profit and income. We hope to post a 20 percent growth in overall business in the current financial year," Chairman and Managing Director of Corporation Bank, B A Prabhakar told reporters here.

While net interest income of the bank increased marginally by 6.2 percent to Rs 914 crore, net interest margin for Q4 stood at 3.34 percent.

For the whole fiscal, the bank reported a 6.1 percent rise in its net profit to Rs 1,345 crore in FY12 compared to Rs 1,267 crore reported a year earlier.

Total income increased by 32.8 percent to Rs 12,199 crore in the last fiscal.

While net interest income (NII)increased by 16.7 percent to Rs 3,759 crore. NIM for the whole fiscal stood at 3.67 percent.

"We expect to maintain the margin level at around 3.5 percent in the current financial year," Prabhakar said.

The bank, which has seen 16 percent growth in total business, posted a 17.4 percent growth in advances to Rs 84,684 crore and 14.9 percent growth in deposits to Rs 105,851 crore in the last financial year.

On the NPA front, the bank has reported gross NPA of 2.12 percent and net NPA of 0.91 percent in FY12.

By the end of March, 2012, the capital adequacy ratio stood at 13.18 percent with a tier-I capital of 9.02 percent.

"We don't need to raise any capital in the current financial year as we are adequately capitalised as of now," Prabhakar said.