Andhra Bank's net zooms, NPAs down

Hyderabad, July 28 (UNI) Low non-performing assets (NPA), augumentation of fee-based income and mobilisation of low cost deposits has helped Andhra Bank post a net profit of Rs 116.41 crore for the quarter ending June 2006 as compared to Rs 85.16 crore for the same quarter last fiscal.

Releasing the Q1 results at a press conference here today, its Chairman and Managing Director K Ramakrishnan also announced the bank would be shortly launching internet banking besides expanding its operations in the Gulf to reach out to NRIs, especially those from Andhra Pradesh and Kerala, with remittances being credited on the same day.

''We have already opened our first Representative Office in Dubai and will open four more offices in Doha, Muscat, Riyadh and Kuwait,'' he said.

The bank, in association with the Indian Railways, will shortly offer internet booking of railway tickets. Andhra Bank was also scouting for good banks for merger as the future will belong to only a few banks with scale and operational efficiences.

The bank's total business grew to Rs 54,852 crore recording a phenomenal growth of 25.35 per cent, he informed adding low cost deposits grew to Rs 12,466 crore from Rs 9,858 crore for corresponding period representing an increase of 26.46 per cent.

The operating profit was up 28.98 per cent to Rs 206.50 crore as against Rs 160.10 crore for the corresponding period in the previous year.

The bank was fully geared to meet the 'Basel-II norm as and when introduced, with the Capital Adequacy Ratio(CAR) improving to 14.38 per cent from 12.45 per cent.

The gross NPA declined to Rs 417 crore (1.91 per cent) from Rs 461 crore(2.54 per cent) while the net NPAs stood at just Rs 16 crore (0.07 per cent) against Rs 68 crore (0.38 per cent) due to agressive loan recovery drive in every branch.

''Our NPA is the lowest in the banking sector in the country'', he claimed.

UNI SM GM 1743