ANDHRA BANK

1

• ANDHRA BANK

Welcomes Analysts
2
- the driving force behind our performance
3
BRIEF PROFILE CUM PERFORMANCE / FINANCIAL
HIGHLIGHTS FY 2006 ANDHRA BANK
4
Brief Profile
Andhra Bank

• Established by a Freedom Fighter
  Dr Bhogaraju Pattabhi Seetaramaiah.
• Established on Nov 20th 1923
• Nationalized on 15th April 1980
• Total Business Delivery Channels 1764
• Two Regional Rural Banks
• Dividends Declared 14, 24, 28, 30 35
  during the last five years

5
Performance Highlights for FY 2006

• Total Business crossed Rs.56000 crores.
• Distributable profit increased by 42.22. (From
  Rs.256.03 crores in 2004-05 to Rs.364.12 crores
  in 2005-06)
• Annualised yield for the equity holders of FPO
  works out to 26.78.
• Very Low NPA levels Gross NPAs _at_ 1.94 Net
  NPAs _at_ 0.24.

6

• Initial Public Offer
• Equity Shares of 15 Cr. _at_ Rs.10/- for 150 Cr., in
  Feb2001
• No. of times over subscribed 2.56 times
• Shares issued at par (Rs.10/- per share)

• Follow on Public Offer
• Equity Shares of 8.5 Cr. Of Rs. 10/- on book
  building basis in Jan2006
• Issue price Rs.90/-
• No. of times oversubscribed 10.68 times
• Retail Investors portion oversubscribed 3.04
  times.

7
Branch Network
Andhra Bank

• Bank has presence in 21 states and 2 union
  territories

8
Business Delivery Channels/Service Outlets
Andhra Bank
9
Andhra Bank
INTELLECTUAL CAPITAL
10
Technology Initiatives / Value Added Services
Andhra Bank

• 100 Branch Computerisation by 31.03.2003.
• ATMs increased from 330 as on 31.03.2005 to 391
  as on 31.03.2006.
• Branches / ECs connected to ATM increased from
  741 as on 31.03.05 to 917 as on 31.03.06.
• No. of ATM/Debit cards increased from 1.29
  million as on 31.03.05 to 1.83 million as on
  31.03.06.
• Total shared ATM net work with IDBI Bank, UTI
  Bank, Indian Bank, HDFC Bank, SBI group and
  others stand at 14400.

11
Technology Initiatives / Value Added Services
(contd.)
Andhra Bank

• Mobile Banking Connected branches improved to
  453, registered users 4175
• Cash Management commenced in 2004. Turnover
  during the current year crossed Rs.1147 cr for 84
  customers in 123 branches.
• 1000 business units (889 branches, 98 extension
  counters 13 Service Centres) covered under
  Cluster based Core Banking. 74 branch network
  and 92.58 of business covered.

12
Technology Initiatives / Value Added Services
(contd.)
Andhra Bank

• Daily ATM hits crossed 1 lakh per day.
• Mobile Recharging facility
• Tech savvy products such as e-Seva, e-Hundi,
  Utility Bill Payment, Visa Electron Debit Card,
  Instant Funds Transfer, On-line Tax Accounting
  System, RTGS etc.
• Various Insurance Linked Deposit products like AB
  Jeevan Abhaya, AB Jeevan Prakash, AB Jeevan
  Prakash Plus, AB Arogyadaan and AB Flex.
• New Tech savvy product AB Kisan Vikas ATM Card
  has been introduced.
• Shortly introducing Internet Payment Gateway,
  Internet Banking.

13
Business Levels (Rs in crores)
Andhra Bank
14

Andhra Bank
DEPOSITS Composition (in Rs.
Crores)
15

Andhra Bank
DEPOSITS Average
(In Rs. Crores)
16
Andhra Bank
ADVANCES - MAJOR SECTOR-WISE EXPOSURE
(Rs in crores)
17
Andhra Bank
ADVANCES - MAJOR INDUSTRY-WISE EXPOSURE (Top
9) (Portfolio Rs. 100 crore above)
(Rs in crores)
18
RETAIL CREDIT (In Rs. crores)
Andhra Bank
19
Andhra Bank
QUALITY OF LOAN ASSETS
(Figures in )
20
Andhra Bank
NON-PERFORMING ASSETS YEAR WISE MOVEMENT IN
FIVE YEARS

(Rs in crores)
21
Andhra Bank
PROVISION COVERAGE FOR NPAS SLIPPAGE RATIOS

• Slippage ratio brought down considerably even
  after adoption of 90 day norm

22
Andhra Bank
NPA MOVEMENT
(Rs in crore)
23
Andhra Bank
INVESTMENTS
(Rs. Crores)
24
INVESTMENTS COMPOSITION
Andhra Bank
(In Rs crores)
25
Quality of Investments Portfolio
Andhra Bank

• Duration of Investment portfolio as on 31.03.2006
  is 4.65 years. (3.83 years as on 31.03.2005) The
  increase is on account of purchase of long dated
  securities under HTM for SLR purpose.
• NPAs in Investment Portfolio - Rs.1.31 Crores
  100 provided.

26
Andhra Bank
PROFIT LOSS ACCOUNT SPREAD MANAGEMENT (
In Rs. crores)
27
Andhra Bank
INTEREST INCOME
(In Rs. Crores)
28
Andhra Bank
INTEREST EXPENSES
(In Rs. Crores)
29
Andhra Bank
Profit Loss Account Non-interest Income
(Rs. In Crores)

• CAGR of Non Interest income from core operations
  stands at 22.88

30
Andhra Bank
Non-Interest Expenditure
(Rs. In Crores)
31
Andhra Bank
CONTRIBUTION / BURDEN
(Rs. In Crores)

• Steep fall in non-interest income inter alia is
  due to fall in profit on sale of investments.

32
PROVISIONS CONTINGENCIES
Andhra Bank
(Rs. in Crores)
33
NET PROFIT
Andhra Bank
(Rs. in Crores)
34
CAPITAL STRUCTURE
Andhra Bank
(In Rs. Crores)
35
Andhra Bank

• FINANCIAL / PERFORMANCE
• Key Ratios and Indicators at a Glance
• (Figures in )

36
Andhra Bank

• FINANCIAL / PERFORMANCE
• Key Ratios and Indicators at a Glance (Contd.)
• (Figures in )

37
Andhra Bank

• FINANCIAL / PERFORMANCE
• Key Ratios and Indicators at a Glance (Contd.).
• (Figures in )

38
Earnings Ratios (Contd.)
Andhra Bank
39
Productivity Ratios (Contd.)
Andhra Bank
(Rs. In Lakhs)
40
Capital Adequacy/Other Ratios (contd.)
Andhra Bank
41
ADDITIONAL DISCLOSURES

• Lending to Sensitive Sectors
• (Rs. in crores)

(Figures in brackets indicate the exposure as a
of GBC)
42
ADDITIONAL DISCLOSURES(Contd.)

• Breakup of Investments (Rs. in crores)

43
ADDITIONAL DISCLOSURES(Contd.)

• CRAR as per extant guidelines of RBI including
  capital charge for Market Risk stands at 14.
• If capital charge for Operational Risk (effective
  from 31.03.2007) is also factored, CRAR would
  stand at 12.54.

44
Value Added Services

• Introduced 8 a.m. to 8 p.m. and 7 day
• Banking in select branches to extend the
• Service hours to clientele.
• Opened a Representative Office in Dubai
• to coordinate with NRIs for increasing
• our NRI customer base.
• Imparting training to Agriculturists, Rural
  Un- employed youth on vocational courses by our 9
  Rural Development Institutes

45
(No Transcript)
46
(No Transcript)
47
ISO 90012000 CERTIFICATE

• ISO 90012000 Certification has been awarded
  to two of our offices
• - STAFF COLLEGE
• - DATA CENTRE at Department of
• Information Technology

48
RESULTS THAT DEFINE PURSUIT OF EXCELLENCE IS DUE
TO

• Support from Customers, Stake-holders and Well
  Wishers
• Team work of 13000 dedicated employees
• Excellent co-operation from Banking Analysts

49
ANDHRA BANK MAKING A DIFFERENCE WITH PEOPLE,
IDEAS AND SOLUTIONS. COMMITMENTS TO VALUES
FULFILLED WITH CARE CONCERN
THANK YOU