Andhra Bank Q4 net profit declines 32.7%

Andhra Bank’s net profit fell 32.7% to ₹35 crore in the quarter ended March on the back of a 24.7% increase in the provisioning to ₹1,399 crore.

Total income at ₹5,425 crore was 5.9% more, while the operating profit of ₹1,434 crore and net interest income of ₹1,685 crore were 22.3% and 12.3% higher.

For the full financial year 2016-17, the public sector lender’s net profit declined by 67.8% to ₹174 crore. (In the previous fiscal, it had registered ₹540 crore.) Provisions and contingencies totalled ₹4,214 crore or were 23.2% higher.

Net interest income increased 3.9% to ₹5,532 crore. Buoyed by the non-interest income, the total income was 5.9% higher at ₹20,336 crore. Operating profit for the fiscal went up 10.8% to ₹4,388 crore.

The net NPA ratio increased to 7.57% in 2016-17 as against 4.61% in the previous fiscal.

Raising equity

Besides the results, the Bank’s Board on Tuesday also approved a proposal to raise common equity capital in aggregate up to ₹1,200 crore. This is to be done by way of a follow-on public officer or QIP at an appropriate time. The Centre had provided ₹1,100 crore on March 31 as its contribution in the preferential allotment of equity shares of the bank. Other proposals approved by the Board were to raise debt capital up to ₹500 crore by way of Basel III compliant additional tier-I bonds and ₹1,000 crore by way of Basel II compliant additional tier-II bonds. Apart from meeting capital requirements,this is also meant to build-up cushion for next year.

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