Andhra Bank produces very good result : Better times ahead!

ANDHRA BANK RESULTS 

FOR FY10 VS FY 09

Good results - Better times ahead 

1. Review

2. More news

3. Results (Numbers)

4.announcements on NSE site

REVIEW :
Andhra Bank has produced a quantum jump in its results for the FY10, compared to FY 09. Total income has risen  to Rs.734058 lakhs from Rs.614225 lakhs. This was on the back of  smart rise in interest on advances.bills to Rs.516127 from Rs.421506 lakhs.Operating profit has also risen smartly to Rs. 181379.07 lakhs from Rs. 129110.41 lakhs.

Net profit has therefore risen to Rs.104967 lakhs from Rs.65605 lakhs. The Basic EPS has risen to 21.64 from 13.53, which is a good jump. Dividend has been hiked to 50 percent from 45 percent.

The percentage of gross to net NPAs is down from 0.18 to 0.17 which is sufficiently low and respectable. Return on assets has risen to 1.39 from 1.09.

At the current price of Rs.133, the P/E ratio works out to 6.15. The last (4^th qtr) had seen a significant jump in Net income. But, a rise in employee cost and other operating expenses has slightly brought down the EPS to 4.95 from 5.68 in previous quarter. . It may be partly due to opening of a large number of branches, last year, the benefit of which will accrue in current year.  

Andhra Bank had consistently improved QOQ in the past. Going forward, it seems, we can expect a smart jump in CASA RATIO, Interest income and EPS. Current year (FY11)could therefore be better than FY10.

MORE NEWS ON 

ANDHRA BANK PERFORMANCE

Further reports on Andhra Bank which have appeared are as below :

 “This year, we have crossed Rs 1,000-crore mark in net profit. This is a great achievement for us,” Mr R S Reddy, Chairman and Managing Director of Andhra Bank, told newspersons on Friday.

The key drivers for growth were reduction in the cost of funds, better management of yield on advances and a diversified credit growth in MSME, retail and agriculture, he added.

While the growth in MSME was 56 per cent, retail and agriculture portfolios grew by 47.6 per cent and 34.2 per cent respectively.

As a strategy, Andhra Bank had moved away a little from corporate lending (which grew only by 17 per cent) and focussed on MSME and retail to drive higher interest income.

The Non Performing Asset (NPA) provision coverage stood at 91.56 per cent as against RBI's stipulation of 70 per cent.

On the future growth, Mr Reddy said the bank was confident about “good” growth.

Joint-venture

The proposed joint venture banking company to be set up by Bank of Baroda (BoB), Indian Overseas Bank (IoB) and Andhra Bank in Kaula Lampur had obtained licence. “This may be operational in the next three to six months,” he added.

BoB, IOB and Andhra Bank will have 40 per cent, 35 per cent and 25 per cent stake in the JV with Rs 400 crore investment.

Description   :    FY10(Rs. in lakhs)  :   FY09(Rs. in lakhs)

Interest on Advances/Bills: 516127.65 :421505.92

Income on Investments    :118831.89 :109898.47

Interest on Balances With RBI : 1582.94 :3767.31

Others  : 747 :2289.98

Interest Earned: 637289.48:         537461.68

Other Income : 96768.29 :            76763.56

Total Income :   734057.77 :          614225.24

Total Expenditure : 552678.7 : 485114.83

Operating Profit : 181379.07 :     129110.41

Provisions  : 37412.29 :  39005.1

Tax Expense : 39000 :     24500

Net Profit (+)  :  104966.78 :          65605.31

Consolidated Net Profit : 104966.78 :65605.31

Dividend (%)     :50 : 45

Face Value (in Rs.)          10           10

Paid-up Equity : 48500 : 48500

Reserves  : 394179.42 :   317492.44

Capital Adequacy Ratio 13.31     12.41

Basic EPS: 21.64 : 13.53

Diluted EPS : 21.64 :13.53

% of Gross/Net NPA : 0.17 : 0.18

Return on Assets : 1.39 :1.09

ANNOUNCEMENTS ON NSE SITE

9-04-2010            Andhra Bank has informed the Exchange regarding a press release dated April 29, 2010 , titled " Andhra Bank's profit up 60% at Rs. 1,046 crore, N.P.A contained at 0.86% Business Growth 29.26%". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). For more details click here.

29-04-2010          Andhra Bank has informed the Exchange that the Board of Directors at its meeting held on April 29, 2010 has declared a Dividend of Rs.5/- ps. (50%) for the financial year 2009-10.

29-04-2010          Andhra Bank has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 170794.62 lacs for the quarter ending on 31-MAR-2010 against Rs. 150670.23 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 105177.04 lacs for the quarter ending on 31-MAR-2010 against Rs. 111143.92 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 24026.45 lacs for the quarter ending on 31-MAR-2010 against Rs. 20121.05 lacs for the quarter ending on 31-MAR-2009.

29-04-2010          Andhra Bank has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 637289.48 lacs for the year ending on 31-MAR-2010 against Rs. 537461.68 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 417709.58 lacs for the year ending on 31-MAR-2010 against Rs. 374674.27 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 104966.78 lacs for the year ending on 31-MAR-2010 against Rs. 65605.31 lacs for the year ending on 31-MAR-2009.

29-04-2010          Andhra Bank has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 637286.58 lacs for the year ending on 31-MAR-2010 against Rs. 537461.68 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 417812.87 lacs for the year ending on 31-MAR-2010 against Rs. 374771.2 lacs for the year ending on 31- mar-2009