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Our Bureau

Mumbai , Jan. 25

THE strategy to enhance the non-interest income levels to address the falling treasury incomes and thinning spreads has helped for Andhra Bank posted a growth of over 30 per cent in net profit for the third quarter of 2004-05.

The bank has recorded a total business volume of Rs 40,998 crore by the end of the third quarter and declared an interim dividend of 15 per cent. For the quarter under review, the bank recorded a growth of 30.25 per cent in net profit at Rs 121.84 crore as against Rs 93.54 crore in the corresponding quarter of previous fiscal on a total income of Rs 706.04 crore (Rs 664.85 crore). It has recorded a growth of 65 per cent in core net profit excluding profit on sale of investment at Rs 71.15 crore (Rs 43.1 crore).

According to the Andhra Bank Chairman and Managing Director, Mr T.S. Narayanasami, "The bank's strategy of aggressively diversifying into non-interest income streams has culminated in an impressive performance."

Some of the key performance parameters that helped the bank record better performance included registering a growth of nearly 33 per cent in low-cost deposits and close to 29 per cent growth in advances during the period ended December 2004, he said.

Addressing presspersons after the bank's board meeting here , the CMD said that it has achieved significant growth in net profit during the quarter under review, despite an increase of around 19 per cent in provisions and contingencies at Rs 425.11 crore (Rs 358.07 crore).

The bank registered a significant improvement in cost of funds at 4.88 per cent from 5.66 per cent. As at the end of December 2004, its capital adequacy ratio stood at 13.02 per cent (15.36 per cent).

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