Andhra Bank expects loans aggregating about Rs 300 crore to come up for restructuring in the current quarter, according to a top official.
In the April-June quarter, 29 loan accounts of the public sector bank required restructuring. The amount involved aggregated Rs 751 crore.
Of the 29 loans accounts, three large loan accounts alone amounted to Rs 530 crore. The bank hopes to recover about Rs 400 crore from these accounts by September.
As on June-end 2012, 39,225 loan accounts aggregating Rs 6,769 crore were restructured by the bank.
According to Andhra Bank Chairman and Managing Director B.A. Prabhakar, more project and infrastructure loans are coming up for restructuring.
The bank will step up loans to the priority sector loans (that is loans given to micro and small enterprises, home and agriculture segment) so that the 17-18 per cent credit growth target can be achieved, said Prabhakar. Andhra Bank is falling short of the 40 per cent priority sector lending target by 3 percentage points.
To achieve this target by March-end 2013, the bank will have to increase credit to the priority sector by about Rs 1,500-2,000 crore.
A. A. Taj, Executive Director, said overall, the bank will recover bad loans aggregating Rs 1,000 crore by March-end 2013 at the rate of Rs 250 crore every quarter.
On the capital front, Taj said the bank will be able to support a 20 per cent growth in credit without raising capital until 2014-15.