Andhra Bank Q1 net seen down 1% at Rs 358 cr: KR Choksey

KR Choksey has come out with its first quarter (April-June) earnings estimates for the banking sector. The brokerage house expects Andhra Bank to report a 4 percent growth quarter-on-quarter (degrowth of 1 percent year-on-year) in net profit at Rs 358 crore.

Net interest income is expected to increase by 6 percent Q-o-Q (up 8 percent Y-o-Y) to Rs 1,015 crore, according to KR Choksey.

KR Choksey on Andhra Bank

We expect net interest margins to improve Q-o-Q on the back of fall in deposit cost and lower interest reversal on incremental slippages. Core fee income to remain subdued owing to slower loan book growth and non-fund Biz.

Trading gains is likely to be strong on the back of decline in bond yields.

We expect fresh addition to NPA would in the range of Rs 500-550 crore, lower to Q4FY13 number(Rs 888 crore). Incrementally restructuring to decline to Rs 700 crore against Rs.1136 crore in Q4FY13.