Andhra Bank restructures loans worth Rs 13,644 cr as on Dec'15

As part of its balancesheet clean-up exercise, state-owned Andhra Bank has restructured 190 accounts having outstanding loans of over Rs 13,643.51 crore as on December 31, 2015.
Most of these accounts carried loans of Rs 25 crore and above amounting to Rs 13,245.93 crore, the bank said in its financial performance update today.
Forty-eight accounts had loans above Rs 1 crore but less than Rs 25 crore with total amount of Rs 378.07 crore; 53 accounts were below Rs 1 crore with Rs 19.51 crore loan.
Andhra Bank said loans worth Rs 690.60 crore slipped as non-performing assets during the period.

Sector-wise, the maximum restructuring both in terms of value and volume was done for industries at Rs 12,368 crore (90 accounts) followed by micro, small and medium enterprises at Rs 1,097 crore (61 accounts).
Among others, agricultural loans of Rs 177 crore (24 accounts) were restructured, housing loans Rs 1 crore (8 crore) and retail loans Rs 37 lakh (7 accounts).

For the quarter ended December 31, Andhra Bank's net profit dipped by 83 per cent to Rs 34 crore as against Rs 202 crore a year ago due to rise in bad loans and a higher provisioning.
Provisions and contingencies were raised to Rs 905 crore during the quarter, against Rs 541 crore a year earlier as RBI has mandated banks to park a higher amount as part of bank's balance sheet clean-up mechanism.

Most of the state-run banks have taken a hit on their profits during the quarter due to the precarious bad loans problem.
Bank of Baroda was the worst hit, registering a loss of Rs 3,342 crore in the third quarter, the highest quarterly loss for any bank ever.
To deal with the burgeoning bad loans problem of state-owned banks, government is also looking at a proposal to set up an entity to tide them over.
Finance Minister Arun Jaitley recently said government will take steps to empower banks to recover bad loans and the problem will be contained soon.
As on September, the gross NPAs of PSU lenders have increased to Rs 3.01 lakh crore as against Rs 2.67 lakh crore in March.