The Hindu Business Line : Andhra Bank hopes to double retail lending

IN a bid to increase profitability in the backdrop of falling treasury incomes, Andhra Bank has decided to go aggressive in expanding its credit portfolio, especially on the retail front, the Chairman and Managing Director, Mr T.S. Narayanasami, said.

Addressing bank officials and dealers of Bajaj Auto here, he said the bank has so far sanctioned Rs 3,588 crore of loans under retail credit portfolio, recording a growth of 34 per cent over the previous year. The bank now targets sanctioning of Rs 6,500 crore under this category, he said.

In alliance with Bajaj Auto, the bank financed 6,076 two-wheelers last year with a value of around Rs 25 crore. This is considered the highest in volume and value done by a public sector bank under any tie-up in a State, the Bajaj Auto Regional Manager, Mr B.K. Senapathi, said. Andhra Bank accounts for 10.5 per cent of Bajaj Auto's two-wheelers sold through hire purchase route, he said.

Recording a growth of 56 per cent in sale of vehicles at 12,500 units as against 8,000 units in the previous year, Bajaj Auto has also improved its market share in Andhra Pradesh to 38 per cent from 30 per cent, he said.

For the current year, Bajaj Auto and Andhra Bank have set a target of selling 20,000 two-wheelers with a hire purchase amount of Rs 75 crore, Mr Senapathi said.

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