Andhra Bank is top gainer

Andhra Bank is currently the top gainer on the BSE, with volumes more than doubling up over its two-week average. The stock is up almost 4.5% at Rs.72 levels. Its 52-week high is at Rs.101.

The market is reacting positively to the Bank’s performance for Q1FY16. The enthusiasm, more than the number is about 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%.