Dear All,

Quarterly reslts are very important these days.apart from the shareholders (including the government),financial results are important and sometimes a source of inspiration for employees who are involved in day to day management and conduct of business.Besides compensation for work employees have lot of emotional attachment with the institution for which they work.It is in this context they are very important for us the employees.Q1 results of our bank which were declared yesterday were good.We have after a very long time showed a growth in the first quarter in topline.Our deposits have grown by about Rs 1000 crores and advances by Rs 500 crores.Interest income on loans have shown a very healthy growth of 38% and wheras gross advances have grown by 30% or so.Operating profit is up by 69.53%net profit has gone up by 230%-from 77 crores in Q1 last year to 256 crores q1 this year.Even as compared to last quarte the performance is good this quarters.Of cpourse one of driver fdor this growth in NP besides interest income is treasury income.treasury is one good source of income stream since abouut 25% of funds are locked in this portfcolio.another qualitative aspect about our results is coverage ratio.This is ratio of coverage of our standard assets by securities.our Net interest income and net interest Margin also have shown increase over last quarter which is also considered a qualitative strength of result.Of course we must keep in mind that just like any student's exam there is no guarantee that if we do well this time next tqurter will automatically be good.for next quarter we have to perform now.We have to concentrate on1.CASA-For thius stratagies are new clientele.Unmless we open large number of accounts we will not be able top do this.we have target of 10 accounta every day at every branch.This involves hard work,involvement,marketing and good service.2.To increase interest income increase in advances and particularly retail advances.3.Non interest income cause it helps in increasing total income without involvement of funds.It improves cost to income ratio -which is another ratio which helps bank to be perceived as a fundamentally strong bank.4Monitoring of advances -To keep NPA to minimum.5.One strength is our Capital adequacy ratio.We have 14.75 %which is very good.We will maintain above 13%.Key to achieve above is consistent hard work and maintaining excellent customer service and image of the bank.We are yet to leverage CBS fully.I am sure that with all teams /unitss working in unison we will be able to hold ANDHRA BANK flag high.With my best wishes for all your endeavours..

Anil Girotra