Andhra Bank

Andhra Bank posted a very good performance for Q1FY16. More than the numbers, the market was enthused with the improvement in YoY asset quality. The bank’s Gross NPA was at 5.75% for the quarter ended June 30, 2015 compared with gross NPA of 5.98% during the same period of 2014-15 fiscal.

Net NPA also declined to 2.99% in the quarter under review against 3.89% during the same quarter last fiscal. Its provision coverage ratio stood at 61.33% as on June 30, 2015.  In terms of its financial numbers for Q1FY16, it posted a 89% (YoY) jump in net profit atRs.202 crore on a 8% rise in total income at Rs.4529 crore. The jump in the net profit was helped mainly by the 40 bps (YoY) drop  in cost of deposit – down t0 7.46% v/s 7.86%.