Andhra Bank has recovered about ₹200 crore non-performing assets (NPAs) in the last three months.

“Both recovery and upgradation of stressed assets have been high during the current quarter,” CVR Rajendran, Chairman and Managing Director of Andhra Bank, told BusinessLine here.

With this, the total recoveries for the bank stood at ₹2,200 crore. At the end of September 2014, the recovered amount was ₹2,000 crore.

Slippages also high However, things are not entirely rosy. “Slippages have also been high,” Rajendran said. This is mainly on account of non-performance of previously restructured loans and increased stress in infrastructure segment. “We are likely to have some more restructuring,” the CMD said.

The crop loan waiver scheme in Andhra Pradesh and Telangana also hit the primary sector performance.

“The recovery has not happened on expected lines. In Andhra Pradesh it is almost nil while in Telangana it is better at 70 per cent,” he added.

Though Andhra Bank continues to focus on retail lending, which grew robustly in the second quarter, there is a general slowdown in the home loan segment. On the corporate credit front, there has been no improvement.

“There has not been a single project in the manufacturing and small and medium enterprises,” Rajendran said.

ATM charges From December 1, Andhra Bank has started imposing charges on ATM transactions, in line with the RBI’s recent permission in this regard.

This is expected to give some relief as Andhra Bank is paying ₹3 crore to other banks by way of ATM user charges.

Last week, Andhra Bank completed raising ₹500-crore in tier I capital by way perpetual bonds.

It has plans to mobilise another tranche of ₹500 crore in February after the RBI’s monetary policy review as interest rates are expected to come down, according to Rajendran.

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