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Andhra Bank CMD blames it on loan waiver

Andhra Bank CMD blames it on loan waiver
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Highlights

The announcement of loan waiver scheme for agriculture and Self-Help Groups (SHGs) in Andhra Pradesh and Telangana State has led to an increase in Non-Performing Assets (NPAs) in the banking sector, Andhra Bank Chairman and Managing Director (CMD) C V R Rajendran has said. Addressing a press conference here on Thursday, he found fault with the AP and Telangana governments for announcing the loan waiver scheme.

Rise in NPAs

  • Repayment culture not good among politicians, says Rajendra
  • Lauds BRAU students for social, financial inclusion activities

Srikakulam: The announcement of loan waiver scheme for agriculture and Self-Help Groups (SHGs) in Andhra Pradesh and Telangana State has led to an increase in Non-Performing Assets (NPAs) in the banking sector, Andhra Bank Chairman and Managing Director (CMD) C V R Rajendran has said. Addressing a press conference here on Thursday, he found fault with the AP and Telangana governments for announcing the loan waiver scheme.

“Due to the loan waiver, there is a decline in the repayment culture among customers and NPAs increased from two per cent to eight per cent during 2014-15. Earlier, NPAs were confined to power, infrastructure and industrial sectors. After the loan waiver, NPAs are spreading to agriculture and cooperative sectors,” he said. Repayment culture was not satisfactory among politicians and most MPs and MLAs were not repaying loans properly, he said.

Andhra Bank CMD CVR Rajendran receiving a memento from BRAU Rector M Chandrayya as BRAU Vice-Chancellor H Lajpath Rai (second from left) looks on

Rajendran said, “By the end of the current financial year, we will complete business worth Rs 2,075 lakh crore. In the coming two years, we will pick up in industrial, infrastructure and education sectors in Andhra Pradesh as the government is planning massive development.” He expressed dissatisfaction over the Union Budget as no sops were announced for the banking sector. A new zonal office would be opened in 2015-16 at Srikakulam in which Vizianagaram would also be included.

The bank would soon recruit staff for 600 officer posts and 1,700 clerical posts. Earlier, Rajendran visited Dr B R Ambedkar University (BRAU) at Etcherla in Srikakulam district and interacted with the Commerce and Management students. He explained the banking-related issues to them. He lauded BRAU Vice-Chancellor Prof H Lajpath Rai’s efforts in motivating students in social and financial inclusion activities. The Andhra Bank CMD distributed loans worth Rs 56 crore to SHGs and other beneficiaries on the university campus.

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