R Ramachandran, Chairman & Managing Director, Andhra Bank


We have a large number of small borrowers whose loans have been classified as NPA. For all the advances of 1 Lakh and below which are classified under NPA most of it comes from retail credit from MSME, little from the agricultural segment. For 1 Lakh and below we have made 100% provision. From April-June, June -Sept, Sept -December there has been an increase in the NPA’s. The growth in NPA has been there in the normal trend and there has been no abnormality. Significant contribution to the NPA has come from small ticket borrowers from the micro and small enterprises and the retail credit category.