Andhra Bank Has Recorded 30% Increase in Its Net Profit

By | March 30, 2011

A recent press report said that Andhra Bank’s net profit has increased 30.42 per cent at Rs 313 crore in the fourth quarter ended March 31, 2011, compared with Rs 240 crore in the year-ago period.The net interest income (NIM) of the bank has gone up by Rs 861 crore, registering a 31 per cent growth.

Mr R. Ramachandran, Chairman and Managing Director, Andhra Bank told the press that the continued growth in advances along with good recoveries, among other factors have, resulted in good profits.He added saying that the net interest margin had improved to 3.80 per cent and there might be marginal hit on NIM moving  forward.

He said that the total business of the bank has increased by 22.4 per cent at Rs 1, 64,310 crore and the earnings per share went up to Rs 26.05 from Rs 21.56. Non-interest income, however, decreased by about Rs 68 crore on account of significant reduction in treasury income.

Mr R. Ramachandran said that the recent 50 basis point hike in interest rate on savings banks accounts by the Reserve Bank of India would cost an additional Rs 100 crore for the bank. The rise in base rate would in turn affect the interest rates of all loans, home loan, car loans, personal loan, etc.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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