On the back of reporting a result with an over 25 per cent jump in its net profit at Rs 320.41 crore for the June quarter, the city-based public sector lender Andhra Bank on Thursday said it will continue to grow above the industry average and has no plans to revise lending rates immediately.
Bank chairman and managing director RS Reddy, announcing the results in Hyderabad on Thursday, said the lender's total business touched Rs 1,31,844 crore during the reporting quarter, a growth of 24.59 per cent over the year-ago quarter.
"The growth in net profit from Rs 256.22 crore at the end of June 2009 to Rs 320.41 crore in the June 2010 quarter was driven by a very strong increase in net interest income (NII), which went up to Rs 736.25 crore from Rs 441.37 crore. Operating profit in the reporting quarter stood at Rs 510.40 crore, up from Rs 348 crore in the same period," Reddy said.
"Core operating profit, excluding profit from securities, soared by 111 per cent to touch Rs 462.76 crore. Our deposits reached Rs 74,700 crore with a year-on-year growth of 22.64 per cent, from Rs 60,911 crore in June 2009," Reddy added. Similarly, advances rose to Rs 57,144 crore in Q1 from Rs 44,911 crore q-o-q, he said.
The credit-deposit ratio improved to 76.86 per cent in the June 2010 quarter as against 74.04 per cent in the same quarter last year, Reddy said, adding, "We have concentrated a lot on retail, micro, SMES and corporate lending. Our priority sector advances too improved to Rs 19,203 crore from Rs 15,594 crore between June 2009 and June 2010. We are above the industry level in all parameters of growth."
Replying to a question, Reddy said 16.1 lakh new current and savings accounts (CASA) have been opened, generating a business of Rs 1,500 crore to Rs 1,700 crore. CASA deposits of the bank increased to Rs 22,089 crore in the reporting quarter from Rs 18,646 crore in June 2009, indicating a share of 29.57 per cent," the bank CMD said.