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Andhra Bank profit nosedives 72% in Q4 on NPA provisioning

Andhra Bank profit nosedives 72% in Q4 on NPA provisioning

Public lender Andhra Bank today said its net profit for the quarter ended March crashed nearly 72 percent to Rs 52 crore due to higher provisioning for NPAs.


The bank clocked Rs 185 crore net profit during the same quarter last fiscal.


According to a statement issued by the bank, total income in January-March grew 9 percent to Rs 5,124 crore as against Rs 4,699 crore in the same quarter in 2014-15.


The lender provided for Rs 1,023 crore towards provisioning (other than tax) and contingencies for the quarter under discussion compared with Rs 633 crore in the previous fiscal, it said.


Net NPAs stood at Rs 6,035.7 crore (4.61 percent) for the quarter under review, as against Rs 3,688.6 crore (2.93 percent) a year earlier.


For the full year of 2015-16, net profit stood at Rs 540 crore as against Rs 638 crore in 2014-15.


The bank raised Rs 800 crore through tier-I bonds in February month, the bank said, adding that it allotted Rs 136 crore worth of preferential shares to LIC in the same month.


Net interest margin for 2015-16 was at 3.18 percent as against 3 percent a year ago.