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.