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Analyst Meet / AGM - Analyst Meet

Expects elevated slippages for next two quarters

Andhra Bank

18-May-2017, 07:06
Andhra Bank conducted an analyst meet on 17 May 2017 to discuss the financial results for the quarter ended March 2017. Suresh Patel, Managing Director and CEO of the bank addressed the call:

Highlights:

Business of the bank increased 9% to Rs 339673 crore at end March 2017, driven by deposits rising 12% to Rs 195441 crore, while advances moved up 6% to Rs 144232 crore. The bank has improved CASA deposit ratio to 29.3% end March 2017 from 26.1% end March 2016.

Retail loan book expanded 13% driven by 17% surge in the housing loan book and 28% jump in vehicle loans. Priority sector advances of the bank improved 13%, while constitute about 43.5% of Adjusted Net Bank Credit at end March 2017.

On loan growth front, the bank is strongly focusing on retail agriculture and MSME (RAM) loan segment. The bank has sharply improved the share of RAM loan book to 57.1% end March 2017 from 53.1% end March 2016 46.7% end March 2015.

Bank expects loan growth at 10.11% for FY18.

The bank has nearly maintained margins stable at 3.07% in FY2017, while expects to maintain margins stable with the variation of +/- 5-10 bps in FY2018.

The fresh slippages of loans surged to Rs 3066.54 crore in Q4FY2017. The bank expects slippages to remain elevated for next two quarters in the range of Rs 2000-2500 crore.

Industry wise Gross NPA for infrastructure sector stood at Rs 3062 crore, iron & steel Rs 4764 crore, textiles Rs 1707 crore, construction Rs 1231 crore, food processing Rs 733 crore, sugar Rs 226 crore, other metals at Rs 455 crore.

The bank has conducted sale of assets amounting to Rs 1258 crore in Q4FY2017.

The securities receipts on the banks book stood at Rs 850 crore end March 2017.

The restructured advance book of the bank dipped to Rs 7692 crore at end March 2017. The slippages from restructured advance book to NPA category stood at Rs 3409 crore in FY2017.

Under Strategic Debt Restructurings (SDR) scheme, bank has exposure to 10 accounts with outstanding balance at Rs 1573 crore. Under 5/25 refinancing scheme, the bank has exposure to loans with the balance at Rs 2240 crore. The exposure under A4A scheme stood at Rs 45 crore end March 2017.