Andhra Bank Q2 net jumps 74 per cent to Rs 251 crore

State-run lender Andhra Bank on Saturday said that the net profit for the September quarter grew by 74 per cent to Rs 251 crore on the back of low deposit cost and higher net interest margin.

The bank's net profit during the same quarter last fiscal was Rs 144 crore. Bank's total income increased by Rs 7.2 per cent to Rs 4,744 crore during the quarter under discussion against Rs 4,424 crore in the second quarter of financial year 2015, Andhra Bank MD and Chief Executive Suresh N Patel told reporters in Hyderabad.

"Our cost of deposit has gone down and even bulk deposits, which used to have high rate of interest have come down during the quarter. Advances growth is also reasonably good. All these have given yield," Patel said.

Total business grew by 14.2 per cent to Rs 2,96,894 crore during the second quarter as against Rs 2,60,012 crore during the corresponding quarter last year.

Non-performing Assets (NPA) have gone down to 2.95 per cent from 3.86 per cent, while Net Interest margin (NIM) grew to 3.04 per cent in the second quarter from 2.54 per cent last fiscal, he added.

Replying to a query, he said that they are confident of maintaining 3 per cent NIM during the current fiscal.

The bank has received Rs 378 crore capital from the centre and raised Rs 500 crore through tier-II bonds during the year, Patel added.