Frequent agitations and bandhs associated with the Telangana issue have partly hit the business of Andhra Bank. Closure of industrial establishments and banks in Telangana and Seemandhra is a major loss in the current fiscal, said bank Chairman and Managing Director C. V. R. Rajendran.
Speaking on the sidelines of the specialised corporate finance branch inauguration function here, he said the bank was forced to close frequently most branches and ATMs due to the issue. “We have a major impact. Very often business establishments are closed. Even banks are forced to close. Our ATMs are going dry…we are not able to fill them up. It has at least 10 to 20 per cent impact on our total business,’’ he said.
Total revenue of the bank was Rs.13,957 crore, and the net profit stood at Rs.1,289 crore in the last fiscal.
The bank has over 2,000 branches and more than half of them are located in Andhra Pradesh. Besides regional issues, the bank is impacted by the escalating non-performing assets (NPAs) due to market volatility and other factors. In a concerning scenario, the bank’s gross NPA has crossed 5 per cent, and the net NPA is at 3 per cent.
The bank was focusing on SME, housing and gold loan segments, the bank CMD said.
