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Andhra Bank posts 99% growth in net profit
Friday, 09 May 2003, 19:30 IST
HYDERABAD: Andhra Bank, one of the leading public sector banks in India, registered a 99 percent growth in net profit during 2002-03 earning a net profit of 
4.03 billion against 2.02 billion last year.
Announcing the financial results for the year ended March 31, its Chairman and Managing Director B. Vasanthan said the bank's total business stood at 329.61 billion as against 284.72 billion last year, a growth of 15.77 percent.
Total deposits of the bank, with a client base of more than 10.5 million, increased from 184.91 billion last year to 210.62 billion. Low cost deposits constituted 30.5 percent compared to 28.3 percent in the previous year.
The board of directors, at their annual general meeting, declared a dividend of 24 percent for 2002-03 as against 14 percent in 2001-02. Operating profit of the bank increased from 4.25 billion to 7.54 billion, a growth rate of 77.45 percent.
The net worth of the bank increased by 26.2 percent from 8.84 billion to 11.15 billion after reckoning return of part of capital of 500 million to the government.
The bank, which entered the annals of top 1,000 banks of the world during 2002, plans to enlarge its customer base to 12 million during the current financial year.
It also plans to achieve a total business of 407.50 billion by the end of March 31, 2004, with total deposits of 255 billion and advances of 152.50 billion.
Vasanthan said the bank would increase its total deposits to 255 billion from 210.62 billion. It would reduce the bulk deposits (deposits attracting preferential interest rate) from 20.42 billion to 11 billion.
He said the gross bank credit increased from 99.81 billion as on March 31, 2002 to 118.99 billion, showing a growth rate of 19.22 percent. Credit deposit ratio improved from 54.53 percent to 56.81 percent.
Agricultural advances stood at 16.28 billion as against 13.89 billion, registering growth rate of 17.2 percent. Advances to small scale industry sector rose to 10.77 billion as against 8.88 billion in the previous year.
The Gross Non Performing Assets (NPAs) as on March 31, 2003 stood at 5.80 billion as against 5.24 billion last year. However, percentage of gross NPAs to gross advances declined to 4.89 percent from 5.26 percent last year.
The net NPAs stood at 2.06 billion as against 2.37 billion last year. Percentage of net NPAs to net advances declined to 1.79 percent as against 2.45 percent last year.
The cash recoveries in NPA accounts amounted to 418 million during the year as against 401 million last year.
During the current financial year the bank plans to reduce NPAs to 4.26 billion. It also plans to bring down gross NPAs to gross advances to less than four percent and net NPAs to net advances to less than 1.5 percent.
Vasanthan said the bank was rendering services through 1,477 business delivery channels consisting of 1,100 branches, 113 extension counters, 220 ATMs and 44 satellite branches spread over 19 states and two union territories.
Source: IANS
4.03 billion against 2.02 billion last year.
Announcing the financial results for the year ended March 31, its Chairman and Managing Director B. Vasanthan said the bank's total business stood at 329.61 billion as against 284.72 billion last year, a growth of 15.77 percent.
Total deposits of the bank, with a client base of more than 10.5 million, increased from 184.91 billion last year to 210.62 billion. Low cost deposits constituted 30.5 percent compared to 28.3 percent in the previous year.
The board of directors, at their annual general meeting, declared a dividend of 24 percent for 2002-03 as against 14 percent in 2001-02. Operating profit of the bank increased from 4.25 billion to 7.54 billion, a growth rate of 77.45 percent.
The net worth of the bank increased by 26.2 percent from 8.84 billion to 11.15 billion after reckoning return of part of capital of 500 million to the government.
The bank, which entered the annals of top 1,000 banks of the world during 2002, plans to enlarge its customer base to 12 million during the current financial year.
It also plans to achieve a total business of 407.50 billion by the end of March 31, 2004, with total deposits of 255 billion and advances of 152.50 billion.
Vasanthan said the bank would increase its total deposits to 255 billion from 210.62 billion. It would reduce the bulk deposits (deposits attracting preferential interest rate) from 20.42 billion to 11 billion.
He said the gross bank credit increased from 99.81 billion as on March 31, 2002 to 118.99 billion, showing a growth rate of 19.22 percent. Credit deposit ratio improved from 54.53 percent to 56.81 percent.
Agricultural advances stood at 16.28 billion as against 13.89 billion, registering growth rate of 17.2 percent. Advances to small scale industry sector rose to 10.77 billion as against 8.88 billion in the previous year.
The Gross Non Performing Assets (NPAs) as on March 31, 2003 stood at 5.80 billion as against 5.24 billion last year. However, percentage of gross NPAs to gross advances declined to 4.89 percent from 5.26 percent last year.
The net NPAs stood at 2.06 billion as against 2.37 billion last year. Percentage of net NPAs to net advances declined to 1.79 percent as against 2.45 percent last year.
The cash recoveries in NPA accounts amounted to 418 million during the year as against 401 million last year.
During the current financial year the bank plans to reduce NPAs to 4.26 billion. It also plans to bring down gross NPAs to gross advances to less than four percent and net NPAs to net advances to less than 1.5 percent.
Vasanthan said the bank was rendering services through 1,477 business delivery channels consisting of 1,100 branches, 113 extension counters, 220 ATMs and 44 satellite branches spread over 19 states and two union territories.
Source: IANS