APGVB reports 112 cr net in FY19

APGVB reports 112 cr net in FY19
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K Praveen Kumar (centre), Chairman, APGVB, addressing the media in Hyderabad on Thursday
Highlights

Provisioning of Rs 837 crore towards pension liability has taken a toll on bank’s bottom line

Hyderabad: Warangal-based Andhra Pradesh Grameena Vikas Bank, which has operations in Telangana and some parts of Andhra Pradesh, on Thursday reported Rs 112.04 crore net profit for the financial year 2018-19, a steep fall from Rs 503.01 crore in the previous financial year (FY18).

"Our net profit has fallen because we have allocated Rs 837 crore towards pension liability as per the central government's guidelines.

Without the provisioning, our bank would have posted a net profit of Rs 596 crore, the highest in the history of regional rural banks (RRBs)," K Praveen Kumar, Chairman, APGVB, told the media here on Thursday.

The bank however posted a robust growth in total business which increased by 14.19 per cent to Rs 32,714.40 crore against Rs 28,650.33 crore in the previous fiscal.

It was first time that the bank's business crossed Rs 30,000 crore.

The deposits went up by 12.02 per cent to Rs 16,056 crore from 14,333.63 crore in FY18. Its advances went up by 16.36 per cent to Rs 16,658 crore in FY19 as compared with Rs 14,316.70 crore in FY18.

In the last fiscal, APGVB disbursed Rs 10,250.85 crore as against previous financial year's disbursement of Rs 10,691.97 crore.

The bank's credit to agriculture increased to Rs 11,259 crore from Rs 9,666.29 crore a year ago, a growth of 16.48 per cent.

In FY19, it disbursed agriculture loans worth Rs 6,316.74 crore, down from Rs 7,234 crore a year ago.

In the asset quality space, the gross non-performing assets (NPAs) have come down to 1.14 per cent from 1.36 per cent last fiscal.

In absolute terms, the gross NPAs fell to Rs 189.10 crore from Rs 195.46 crore.

However, net NPAs have gone up to Rs 55.62 crore (0.34 per cent) from Rs 28.03 crore (0.20 per cent) a year ago.

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