Andhra Bank, the public sector bank has bunged lending to the power sector as its exposure to the sector has reached 22% of the total outstanding advances. The bank has disbursed loans of about Rs 16,625 crore to the power sector till September 2011, out of the total advances of Rs 78,454 crore.
The bank has sanctioned most of the loans to State Electricity Boards (SEB) and they are backed by government guarantee so these loans are standard assets. The bank has received a request from Rajasthan SEB for restructuring its loan but the bank is not taking any additional exposure to the power sector.
Further, the bank’s focus will be on low cost current and savings deposits. The bank is conducting special marketing campaigns to boost the proportion of CASA deposits in the total deposits.
Andhra Bank’s net profit for the second quarter of the current fiscal has increased 4.34% at Rs 316.12 crore as compared to Rs 302.97 crore for the corresponding quarter of the last year. The bank’s total income has rose 38.83% at Rs 2960.32 crore for the quarter under review as compared to Rs 2132.33 crore for the second quarter of the previous year.
