State-run lender Andhra Bank said net profit for the September quarter grew by 74 percent to Rs 251 crore on the back of low deposit cost and higher net interest margin. The bank's net profit during the same quarter last fiscal was Rs 144 crore. "Bank's total income increased by Rs 7.2 percent to Rs 4,744 crore during the quarter under discussion against Rs 4,424 crore in the second quarter of financial year 2015," Andhra Bank MD and Chief Executive Suresh N Patel told reporters here.
"Our cost of deposit has gone down and even bulk deposits, which used to have high rate of interest have come down during the quarter. Advances growth is also reasonably good. All these have given yield," Patel said.
Total business grew by 14.2 percent to Rs 2,96,894 crore during the second quarter as against Rs 2,60,012 crore during the corresponding quarter last year. Non-performing Assets (NPA) have gone down to 2.95 percent from 3.86 percent, while Net Interest margin (NIM) grew to 3.04 percent in the second quarter from 2.54 percent last fiscal, he added. Replying to a query, he said they are confident of maintaining 3 percent NIM during the current fiscal.
The bank has received Rs 378 crore capital from the centre and raised Rs 500 crore through tier-II bonds during the year, Patel added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
