Andhra Bank shares rallied as much as 6 per cent to hit intraday high of Rs 72.90 on Monday as the company reported strong earnings growth for the first quarter of the current fiscal.
Andhra Bank on Saturday reported 89 per cent jump in its net profit at Rs 203 crore against Rs 107 crore in the same quarter of last fiscal.
Andhra Bank's net interest income (NII) or interest earned over interest expended surged 44 per cent annually to Rs 1,157 crore against Rs 804 crore in the year-ago period.
S K Kalra, managing director and chief executive officer at Andhra Bank, told NDTV that their cost of deposits has come down by 40 basis points in the April-June quarter due to which their yield has gone up by 10 basis points leading to surge in NII. (Watch)
Andhra Bank's gross non-performing assets rose to 5.75 per cent of total advances against 5.31 per cent in the March quarter. Mr Kalra said the growth in nonperforming assets is on account of higher agricultural lending in the state of Andhra and Telengana. However, he said that the amount will be recovered over next two quarters.
Net nonperforming assets of the public lender rose 6 basis points sequentially to 2.99 per cent. However, on an absolute basis net nonperforming assets decreased to Rs 3,650 crore against Rs 3,689 crore sequentially.
Andhra Bank shares ended 2.17 per cent higher at Rs 70.5 apiece, outperforming the sector benchmark Bank Nifty, which ended 2.27 per cent lower.
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