Andhra Bank posts 75% dip in net profit for Q4

Tags: Companies
State owned Andhra bank has reported a severe drop of around 75 per cent in its net profit at Rs 88.08 crore for the quarter ended March FY 14 when compared with Rs 344.58 crore in the corresponding quarter last year. The drop, the bank says, is because of larger provisioning for non performing assets.

"This drop in net profit is however the lowest in the past three quarters. The provision coverage ratio has gone up from 45 to 52 per cent. Despite the increase in asset stress, this quarter, I would say , it is on the recovery path,"said S K Kalra-executive director of the bank.

The total income of the bank stood at Rs 4057.89 crore for Q4 of Fy 14 against Rs.3713.06 crore. The net profit for the complete fiscal also went down by 66.21 per cent to Rs 435.58 crore, which was Rs 1289.13 crore in the previous fiscal.Also, the total income for the reporting fiscal went up to Rs 15,630 crore when compared with Rs 13,957 crore in FY 13.

"Infrastrurcture, power & steel are some of the sectors where there was stress. There was an overall slippage in the economy and our exposure was particularly high to bigger accounts including discoms. But this year , we hope that as the economy may stand at around 5.6 to 5.75 per cent, banking may grow by 18 -20 per cent," Kalra said on Friday.

The net non performing asset ratio of the bank stood at 3.11 per cent as of March 2014, while the gross non performing ratio is 5.29 per cent. The bank has decided to categorize the NPAs into what it calls Special Mentioned Accounts for overdues ranging upto 60 days after which it will be an NPA. " The machinery is now driven in such a manner that from day one there will be recovery methods applied so that further slippages can be avoided," he said.

trushnaudgirkar@mydigitalfc.com

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