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Updated: 28/10/2009 | 12:00 AM IST
Strong Q2 result generates interest in Andhra Bank
Capital Market
Wednesday, October 28, 2009 (New Delhi)
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Andhra Bank rose 1.44% to Rs 112.85 at 13:54 IST on BSE, off the session's low of Rs 107.35, after net profit surged 69.61% to Rs 273.97 crore in Q2 September 2009 over Q2 September 2008.

At the day's low of Rs 107.35, the stock had declined 3.51% before the results announcement.

Meanwhile, the BSE Sensex was down 121.74 points, or 0.74%, to 16,231.66.

On BSE, 2.35 lakh shares were traded in the counter as against an average daily volume of 1.95 lakh shares in the past one quarter.

The stock hit a high of Rs 115.80 and a low of Rs 107.35 so far during the day. The stock had hit a 52-week high of Rs 124.70 on 21 October 2009 and a 52-week low of Rs 34.80 on 27 October 2008.

Ahead of Q2 September 2009 results, the stock had lost 6.47% in two trading sessions to Rs 111.25 on 27 October 2009 from a recent high of Rs 118.95 on 23 October 2009.

The mid-cap bank stock had outperformed the market over the past one month till 27 October 2009, rising 7.49% as compared to the Sensex's 2.03% fall. It had also outperformed the market in the past one quarter, gaining 23% as compared to the Sensex's return of 6.36%.

The bank's equity capital is Rs 485 crore. Face value per share is Rs 10.

The current price of Rs 112.85 discounts the bank's Q1 June 2009 annualized EPS of Rs 21.13, by a PE multiple of 5.34.

Andhra Bank's total income rose 23.13% to Rs 1790.92 crore in Q2 September 2009 over Q2 September 2008. The bank declared its results during trading hours today, 28 October 2009.

The bank's gross non-performing assets (NPA) rose 6.49% to Rs 398.36 crore in Q2 September 2009 over Q2 September 2008. The ratio of gross NPAs decreased to 0.83% as on 30 September 2009 from 1.03% as on 30 September 2008. The net NPAs as of 30 September 2009 was at 0.16%, lower than 0.24% as of 30 September 2008.

Andhra Bank operates a network of over 1,100 bank branches, 113 extension counters, and 220 ATMs across 19 states. More than 90% of all business transactions occur through computerized branches. The group's banks specialize in a number of areas, including credit card services, retail lending, and accident insurance-linked savings bank accounts.

The Government of India holds 51.55% stake in Andhra Bank (as on 30 September 2009).

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