Welcome to ANDHRA BANK

Shri R S Reddy took charge as Chairman and Managing Director of Andhra Bank on 02.08.2008.

He is a Post Graduate in Agriculture. He hails from Bagepalli in Karnataka State. He had his initiation into the corridors of banking services as a Probationary Officer in Bank of India in May 1974.

He has 34 years of experience as a Banker in multifarious assignments - as Officer, Branch Manager, Development Manager, Regional Manager and General Manager in various geographical locale- like the states of Karnataka, Goa, Andhra Pradesh and Maharashtra ; and a three and half year stint abroad in New York as the Chief Executive of Bank of India's American Operations.

On his return to India from his U S assignment in July 2005, Shri Reddy took up the reins of the crucial department of Asset Recovery in addition to Retail Business in Bank of India and was instrumental in initiating strong measures in recovery resulting in substantial reduction in Non Performing Assets and in augmenting Non Interest Income.

Prior to joining in our Andhra Bank, Shri R S Reddy was Executive Director of Union Bank of India from 01.05.2006 to 01.08.2008.

Sri Anil Girotra, M.Sc., LLB, CAIIB, Dip. in Per. Mgt. ; Dip. in Corporate Laws has joined Andhra Bank as Executive Director on 17.05.2008. Prior to joining Andhra Bank, he was heading UK Operations of Canara Bank in London as Chief Executive. He joined Canara Bank as Officer Trainee in September 1975. He held important positions viz., headed Regional Office, Mumbai ; headed Lucknow Circle covering Uttar Pradesh, Uttarkhand States ; headed Kolkata Circle covering West Bengal, Orissa and Northeastern States ; held Senior position in Housing Finance Company of Canara Bank ; headed Merchant Banking Division of the bank in northern India. He has 33 years of varied experience in Banking Operations and Administration. He evinces interest in anything new - be it technology, sports etc.,

Shri A A Taj, B.Com., C.A., has joined Andhra Bank as Executive Director on 07.12.2009. Prior to joining Andhra Bank, he was General Manager, Union Bank of India. He has long tenure of 33 years in Union Bank of India -- served as Branch Manager, Regional Manager, Zonal Manager, Field General Manager and functional head at Corporate Level. His strength is to take quick decisions backed by knowledge and experience and motivate and inspire his followers / subordinates by setting example of his total involvement, highly professional approach.

Sri R J Vaidyanathan, a Senior General Manager has been elevated as Chief General Manager of Andhra Bank from 03.10.2009.

His brief profile : Mr. Vaidyanathan is a qualified Chartered Accountant, joined in Andhra Bank in April 1977 as Grade II Officer. He was recruited as Inspector of Branches.

He held various positions in Andhra Bank, has 32 years of varied experience in Andhra Bank. He served as Manager (Advances), Senior Branch Manager, Chief Manager of branches located in Andhra Pradesh and Tamilnadu handling various types of advances in Corporate, SSI and Retail Credit. As Asst General Manager in Funds and Investment Cell in Mumbai he was instrumental in setting up Dealing Room for Domestic Treasury. Later he was elevated as Dy General Manager in Funds Department. During the period 1999 to 2001, he was responsible for shifting the 4 different dealing rooms to Mumbai and integrating the Domestic and International Treasury.

Names & particulars of the executives (General Managers) at Head Office, Hyderabad

PRESS RELEASE
Date: 29.04.2010

ANDHRA BANKS PROFIT UP 60% AT Rs 1,046 CRORE, N.P.A CONTAINED AT 0.86% BUSINESS GROWTH 29.26%

Andhra Bank came out with another stellar performance with annual profit for the year zooming to Rs. 1,046 Crore, up from Rs 653 Crore, an increase of 60.15 %. Business grew 29.26% y-o-y from Rs.1,03,818 Crore to Rs.1,34,194 Crore. All the more creditable is the fact that the Asset Quality continues to be excellent, with Gross NPA standing capped at 0.86% (net NPA at 0.17%), one of the best in the industry.

Growth of credit was contributed mainly by MSME(54.66% growth) , Retail (47.63 % growth) and Agriculture (34.23% growth). The growth in retail has come mainly from increase in gold loans and home loans. The Operating Profit of the bank continued its scorching pace of growth from Rs. 1288 Crore to Rs. 1810 Crore, a growth of 40.51%, on the back of increased non-interest income by 26.03%. Net Interest Income (NII ) improved from Rs. 1627 crores to Rs. 2195 crores, with an increase of 34.90% over last year. Consequently, Net Interest Margin(NIM) moved up to a healthy 3.21% from 3.03% last year.

The Return on Assets worked out to 1.39% as compared to 1.09% last year, whereas Book Value per share has increased from Rs. 75.20 to Rs.96.76 as at 31.3.2010.The Capital Adequacy was 13.93 % as on 31.3.2010 as against RBI mandated requirement of 9%. Provision Coverage ratio stood at 91.56% as against the RBI stipulation of 70%. The high Capital adequacy as well as coverage ratio bring out the inherent strength of the Bank.

The Board of Directors have recommended a dividend of 50% for the year, subject to approval in the Annual General Meeting.

During the year, Verticals were created at Head Office for major business segments like Resources, Large Corporate, Mid Corporate, Retail, MSME, New Branches, Stagnating Branches etc., These verticals are headed by GMs and DGMs who are responsible for achieving the targets. The Bank opened 125 new branches during the year, predominantly in the North, West and Eastern parts of the country, thus increasing its pan India footprint. IndiaFirst Life Insurance, a joint venture of the Bank with Bank of Baroda and Legal & General insurance, (UK) was launched on 1st Jan10 for rolling out products. In the first three months itself the Bank has sold 19689 policies and collected premium of Rs.53.44 crore and earned commission of approx Rs. 2 crore. Setting up of Banking subsidiary jointly with Bank of Baroda and Indian Overseas Bank in Malaysia is in the final stages.

Performance Highlights:

Profitability :

a. Net Profit : Net profit of the Bank for the FY ended March 2010 increased by Rs 393 crore ( 60.15 %) from Rs. 653 crore in March 2009 to Rs.1046 Crore.

The Net profit of the Bank for the Quarter (Q4) ended March 2010 is up by 19.42 %. The Net profit was at Rs.240.29 Crore , as compared to Rs.201.21 Crore for Q4 of the previous fiscal, recording an increase of Rs 39.08 crore.

The Net Profit per employee increased to Rs.7.32 Lacs from Rs.4.58 Lacs in March 2009.

The Net Profit per branch increased to Rs.67.17 Lacs from Rs.45.60 Lacs in March 2009.

b. Operating Profit : Operating Profit of the Bank for the FY ended March 2010 increased by Rs.522 Crore (40.51%) from Rs.1,288 Crore in March 2009 to Rs.1,810 Crore.

The Operating Profit of the Bank for the Quarter (Q4) ended March 2010 is up by 22.10 %.

c. Net Interest Income: The Net interest income increased by Rs.568 Crore from Rs 1627 crore to Rs. 2195 crore in March 2010, recording an increase of 34.90 % on y-o-y basis.

During Q4 of the financial year, the net interest income was Rs.656 Crore , in comparison with Rs 395 crore in Q4 of the previous fiscal.

d. Net Interest Margin (NIM): The Net interest margin, which was 3.03% last year, moved up significantly to 3.21 % this year.

e. Non-Interest Income: The non-interest income was at Rs 964.62 crore , as compared to Rs 765.38 crore in 2008-09. While profit on sale of investments increased by Rs 86.89 crore this fiscal, the Fee based income has gone up by Rs. 27.32 crore from Rs 80.20 crore in 2008-09 to Rs 107.52 crore in 2009-10.

Business Growth:

a. Total Business : Total Business of the Bank as on 31.3.2010 stood at Rs. 1,34,194 crore. The total business increased by Rs. 30,376 crore from Rs. 1,03,818 crore as on 31.3.2009, recording a growth of 29.26%.

b. Deposits: Total deposits of the Bank increased by Rs.18,298 crore to Rs. 77,688 crore from Rs. 59,390 crore as on 31.3.2009, recording a growth of 30.81 %.

c. CASA Deposits: CASA deposits increased from Rs. 18,653 crore as on 31.3.2009 to Rs. 22,864 crore as on 31.3.2010, registering a growth of 22.57%. The share of CASA deposits stood at 29.43%.

d. Advances : The Gross Bank Credit stood at Rs. 56,505 crore as on 31.3.2010, registering an increase of Rs. 12,077 crore over the previous year, with growth rate of 27.19 %. The Credit Deposit ratio stood at 73.05 %.

MSME Advances stood at Rs. 8,285 crore as at the end of March 2010, as against Rs. 5,357 crore as at the end of March 2009, reflecting an annual growth of 54.66%.

Retail Advances also recorded a substantial growth of 47.63% over last year, reaching Rs. 8,920 Crore by 31.3.2010, as against Rs. 6,042 crore as on 31.3.2009.

Advances to Agriculture sector increased from Rs. 6,834 crore as on 31.3.2009 to Rs. 9,173 crore as on 31.3.2010, registering a growth of 34.23%.

Total Priority Sector advances constituted 42.79 % of Adjusted Net Bank Credit which is well above the RBI norm of 40% . Like wise, Agricultural advances constituted 20.65% of Adjusted Net Bank Credit against RBI norm of 18%.

Network : The Banks network spread across 2,502 business delivery channels comprising 1557 branches, 48 Extension counters and 859 ATMs spread across 23 States and 3 Union Territories. During the year, the Bank opened 125 branches.

Clientele expansion : 16.44 lakh new accounts were opened in the CASA group during the year .

Financial Inclusion:

AB Smart Card project is implemented for Electronic Benefit Transfer of Govt. Schemes covering 10.17 lakh members. As a part of educating the rural population about the various banking services, four Financial Literacy and Credit Counselling Centres(FLCCs) were set up in the four districts of A.P., where our Bank is the lead bank. The bank has finalized a road map as per the directions of RBI to provide banking service outlets in the villages having population above 2,000 by the year 2011. The plan will be implemented with Business Correspondent network (i.e., Branchless banking mode).

Asset Quality & Recovery

a. NPAs : Gross NPAs stood at 0.86% as compared to 0.83 % as on 31.3.2009 . Net NPAs stood at 0.17 % as on 31.3.2010 compared to 0.18 % as on 31.3.2009. In absolute terms, the Gross NPA was Rs 487.87 crore (previous year Rs.368.14 Crore) and Net NPAs stood at Rs.95.72 crores (previous year Rs 79.22 crore).

b. Provision coverage: The NPA Provision coverage ratio stood at 91.56 % as at 31.3.2010, compared to 91.08 % as at 31.3.2009.

Capital

a. Capital Adequacy Ratio: The Capital Adequacy Ratio under Basel II norms was 13.93 % as on 31.3.2010 as compared to 13.22 % as on 31.3.2009.

b. Networth : The Networth of the Bank stood at Rs. 4,410.04 crore as on 31.3.2010, compared to Rs.3,646.99 Crore as on 31.3.2009.

c. Return on Enquity: The Return on Equity was 25.96 % for the year ended 31.3.2010 as compared to18.94% for the previous year.

d. Earning Per Share: The Earnings per share has gone up from Rs.13.46 in FY 2008-09 to Rs. 21.56 in FY 2009-'10 with an an increase of 60.18 %.

e. Book Value Per Share: The Book Value Per Share was at Rs. 90.93 as at 31.3.2010 as compared to Rs.75.20 as at 31.3.2009, an increase of 28.67 %.

Productivity Ratios:

a. ROA : The Return on Assets worked out to 1.39 % as compared to 1.09 % as at March 2009.

b. Cost to Income Ratio: The Cost to Income ratio improved to 42.72 % for the year ended March 2010 compared to 46.16 % in the year ended March 2009.

c. Cost of Deposits : The Cost of deposits stood at 6.10 % p.a as against 6.96 % in 2008-09.

d. Yield on advances : Yield on Advances stood at 10.92 % p.a compared to11.41 % in 2008-09.