- Andhra bank reported that drop in profit of 72% in q4 due to NPA provisioning. According to bank authorities the total income grew by 9% in Jan and March quarter to 5124 crores against 4699 crores
- But it has crashed 72% to 52 crores due to high NPA’s. the bank shown 185 crores net profit in year over year of same quarter
- The net NPA’s 6035.7 crores ( 4.61 %) against 3688.6 crores (2.93% ) earlier
- There is also a drop in full year net profit of 540 crores against 638 crores comparing to previous year
- As we know bank raised 800 crores of tier-I bonds in Feb month and issuing of 136 crores worth preference shares worth to LIC Corporation in same month
- The net interest margin raised to 3.18% against 3% in year a ago
Andhra bank profit surges 72% in Q4 ( jan-march ) 2016
Common Finance Terms
Blue Chip Company
The Company is financially strong with high quality selling and more profits. The price of the stock will appear in S&P 500.
Global Fund
This mutual fund can be invested by the firms that are located across the world. This fund provides the global opportunities in order to diversification that includes the hedging features. These funds can be in closed-end fund or exchange-traded fund foams.
Interim Dividend
the dividends declared before the annual general meeting it is called Interim Dividend. Mostly Interim dividends are declared by UK based companies which occurs semi annually.
IPO ( Initial Public Offerings)
The Sales of stock offered to public for the first time. Usually IPO's issues to rise the capital to company. it is a pillar for the new company
Locked-In Interest Rate
They will be a mutual contact between borrower and lender on fixed rate interest of lending amount for a specific period of time. this will be done because the interest rates may vary every time.
NAV(Net Asset Value)
Usually mutual funds are divided in the small units. The value of closing market price divided by the units if the mutual funds is called as NAV Value.
Accounting Cycle
The process of steps that are included from collection of transactions to the end of the financial statements. The steps as follows:
1) Data collection from the transactions happen
2) Posting in to journals
3) Posting in to Ledger
4) Preparing the trail balance without adjustments
5) Adjustments to the trail balance prepared
6) Organizing the books of final accounts
7) Closing the books of accounts
8) Posting the post closing trail balance to verify the books of accounts
This steps also knows as bookkeeping cycle
Inflation
The price rate of goods and services are in rising and subsequently the power of purchasing is falling , that the Inflation rises.
AAA
The highest ratings provided by bond rating agencies on bonds
GAAP( General Accepted Accounting Principles )
A Set of rules and standards to be followed according to the GAAP while preparing the accounts and financial statements. Every company needed to follow according to the GAAP principles, it is universal acceptable principles.
Input Taxafter the company is registered for VAT (Value Added Tax).If the company buys goods and services from other company, VAT is charged at 17.5% on the cost of purchase. Hence it is also called as input tax. Usually the company charges VAT to his customers for the same VAT rate. If input tax is more and output tax is less, the company can get claim money from HMRC
Compounded Annual Growth Rate
The Growth Rate of the Investment of Every Year
It is calculated as follows:
(CAGR)=[year end value/ year opening value] [1/no of years]-1
Fixed Assets:
Fixed Assets are those assets that are fixed in nature , that may not be quickly converted in to cash
EX: Buildings,Equipment, Fixtures and Fittings.
Bad debts
Bad debts are owed to a creditor that they are unable to collect the amounts of debts given by him. they will be tax assumption to deduct the debts for some reasons.
Preference Shares
Features of Preference Shares
1) Preference Shares holders are entitle to fixed rate of dividend
2) Share holders enjoy the voting rights
3) Preference Share holders are given preference in paying the dividend at the time of company winding up
The Company is financially strong with high quality selling and more profits. The price of the stock will appear in S&P 500.
Global Fund
This mutual fund can be invested by the firms that are located across the world. This fund provides the global opportunities in order to diversification that includes the hedging features. These funds can be in closed-end fund or exchange-traded fund foams.
Interim Dividend
the dividends declared before the annual general meeting it is called Interim Dividend. Mostly Interim dividends are declared by UK based companies which occurs semi annually.
IPO ( Initial Public Offerings)
The Sales of stock offered to public for the first time. Usually IPO's issues to rise the capital to company. it is a pillar for the new company
Locked-In Interest Rate
They will be a mutual contact between borrower and lender on fixed rate interest of lending amount for a specific period of time. this will be done because the interest rates may vary every time.
NAV(Net Asset Value)
Usually mutual funds are divided in the small units. The value of closing market price divided by the units if the mutual funds is called as NAV Value.
Accounting Cycle
The process of steps that are included from collection of transactions to the end of the financial statements. The steps as follows:
1) Data collection from the transactions happen
2) Posting in to journals
3) Posting in to Ledger
4) Preparing the trail balance without adjustments
5) Adjustments to the trail balance prepared
6) Organizing the books of final accounts
7) Closing the books of accounts
8) Posting the post closing trail balance to verify the books of accounts
This steps also knows as bookkeeping cycle
Inflation
The price rate of goods and services are in rising and subsequently the power of purchasing is falling , that the Inflation rises.
AAA
The highest ratings provided by bond rating agencies on bonds
GAAP( General Accepted Accounting Principles )
A Set of rules and standards to be followed according to the GAAP while preparing the accounts and financial statements. Every company needed to follow according to the GAAP principles, it is universal acceptable principles.
Input Taxafter the company is registered for VAT (Value Added Tax).If the company buys goods and services from other company, VAT is charged at 17.5% on the cost of purchase. Hence it is also called as input tax. Usually the company charges VAT to his customers for the same VAT rate. If input tax is more and output tax is less, the company can get claim money from HMRC
Compounded Annual Growth Rate
The Growth Rate of the Investment of Every Year
It is calculated as follows:
(CAGR)=[year end value/ year opening value] [1/no of years]-1
Fixed Assets:
Fixed Assets are those assets that are fixed in nature , that may not be quickly converted in to cash
EX: Buildings,Equipment, Fixtures and Fittings.
Bad debts
Bad debts are owed to a creditor that they are unable to collect the amounts of debts given by him. they will be tax assumption to deduct the debts for some reasons.
Preference Shares
Features of Preference Shares
1) Preference Shares holders are entitle to fixed rate of dividend
2) Share holders enjoy the voting rights
3) Preference Share holders are given preference in paying the dividend at the time of company winding up
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