Andhra Bank Q2 net nosedives 80%; higher NPA provisioning hit

11/11/2016 16:45

Medium-sized public sector undertaking Andhra Bank on Friday reported a significant drop of 79.5 per cent in its standalone net profit at Rs 51.42 crore for the second quarter ended September 30, 2016, hit by increased provisioning for bad loans.

It had posted a standalone net profit of Rs 251.26 crore in the corresponding quarter of previous fiscal, said Andhra Bank in a filing to the BSE on November 11, 2016.

However, total income of the bank increased by 6.3 per cent at Rs 5,042.67 crore in 2016-17, from Rs 4,744.16 crore from the same period a year ago.

During the quarter, provisions for bad loans jumped to Rs 956.81 crore from Rs 524.86 crore in the corresponding period of last fiscal.

The bank’s gross non-performing assets grew to 11.49 per cent of total loans during July-September quarter, compared with 5.71 per cent in the year-ago period. Net NPA of the bank too rose to 6.99 per cent against 2.95 per cent in corresponding period last year.

Meanwhile, shares of the bank closed at Rs 54.35 apiece, down 3.89 per cent, from previous close on BSE.

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