Andhra Bank has reported a 72.14% fall in net profit at Rs 51.60 crore for the quarter ended March, 2016, due to higher provisioning and slippages. The net profit for the same quarter last year was Rs 185.24 crore.

The bank’s total income grew by 9.04% at Rs 5124.37 crore during the quarter under review, compared with Rs 4699.16 crore in the year-ago period.

However, there was a 16.99% increase in operating profit (before provisions and contingencies) during the quarter as operating expenses remained flat on top of the income growth.

The management has provided for Rs 1022.59 crore in provisions and contingencies, an increase of 37.2% over Rs 818 crore in the corresponding previous quarter.

Impacted by additional slippages, gross non-performing assets (NPA) rose to 8.39% of total advances, from 5.31% level in the year-ago period. Similarly, net NPAs rose to 4.61% from 2.93% level in the corresponding previous quarter.

Andhra Bank was able to maintain a highger net interest margin (NIM) of 3.41%, though it is marginally lower compared to 3.48% in the year-ago period. For the full year ended March 2016, the NIM stood at 3.18%, a shade higher than 3% in the previous year.

For the year ended March 2016, the bank’s net profit decreased by 15.44% at Rs 539.84 crore, compared with Rs 638.44 crore in the previous year. Total income, however, increased by 7.44% to Rs 19,199.16 crore from Rs 17,868.45 crore in the previous year.

Total advances grew by 5.2%, while total deposits increased by 12.4%. Retail loans grew by 23.1% even though large and medium corporate loans have come down by 7.7% during the year.