Andhra Bank - Q4FY13 Result Review - Angel Broking

Andhra Bank registered a flattish growth in net profit at 1.4% yoy to Rs. 345cr during 4QFY2013. Growth in net interest income remained subdued at 4.3% yoy to Rs. 953cr, aided by 54.0% yoy growth in non-interest income, operating profits grew moderately by 14.3% on a yoy basis to Rs. 1,307cr. The bank witnessed continued pressure on the asset quality front, with a sequential increase of 5bp and 16bp in gross and Net NPA ratios, respectively to 3.71% and 2.45%, which resulted in 49.8% yoy increase in provisioning expenses and resulted in flat earnings level performance.

At the current market price, the stock is trading at a relatively expensive valuation of 0.6x FY2015E ABV. We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

Keywords