Rising credit offtake in Q1 of FY 2010-11 has enhanced the aspirations of Andhra Bank. The bank has fixed a goal of 25-27% rise in its loan book in this fiscal. Fall in cost of deposits has helped the bank to calculate its net interest margin (NIM) at 3.5% in this year.
In Q1 of this fiscal, the bank has posted an operating profit of Rs 510 crore, an increase of 47%. The net profit for Q1 is Rs 320 crore, an increase of 25%. The net interest income has gone up by 66.89% at Rs 736 crore. The NIM has increased from 2.85% to 3.72%.
The total business of Andhra bank has posted a 25% increase worth Rs 1,31,844 crore. The deposits and loans have increased as well. The deposits have gone up by 22.64% to Rs 74, 700 crore and loans by 27.24% to Rs 57,144 crore.
R S Reddy, CMD, stated, “Retail, MSME and corporate lending are proving to be key contributors to the growth in net interest income and net interest margin. Retail credit rose by 36.69% while MSME advances increased by 46.6% in the first quarter. The corporate lending increased by 21.31%”.
Reddy added, “We are above the industry level in all parameters now. The outlook for growth during this year appears good and we expect to do better in the next three quarters”.
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