During Jan-Mar 2013, the net profit of Andhra Bank rose 1.5 per cent to Rs 345 crore compared from Rs 340 crore in the year-ago period.
The state-run bank posted 15 per cent growth in total income at Rs 3,713 crore compared to Rs 3,229 crore in the corresponding period last year.
While net interest margin was in the range of 3.04 per cent, the bank posted 17 per cent and 18.4 per cent growth in deposits and advances respectively during the period under review.
Owing to provisions for new non-performing assets, wage settlements and pension, the bank’s profit came under pressure, BA Prabhakar, Chairman and Managing Director of the bank informed media persons.
On account of some slippages in the corporate segment, the net NPAs of the bank rose to 2.45 per cent from 0.91 per cent previous year.
For the financial year 2012-13, net profit declined to Rs 1,289 crore from Rs 1,345 crore in the previous year.
He said the operating profit of the bank would be better in the current quarter owing to an expected credit growth at 18 per cent and increase in other come because of continued good performance by the treasury.
The net interest margin could be around 3 per cent for 2013-14 with a targeted business growth of 20 per cent. The bank plans to open 200 new branches this year. Last year, it opened 160 branches. It will recruit 2,400 officers and clerks this year.
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