Andhra Bank's net profit fell 53% to R107 crore in the June quarter compared with R231 crore a year ago. The bank attributed the fall in net profit to what it called lack of clarity on the loan waiver scheme proposed by the Telangana and Andhra Pradesh governments.
“There is neither any official announcement of schemes nor relief by both the governments. The delay in loan waiver has resulted in farmers not repaying their loans. This has resulted in farm loans of R1,078 crore turning into NPAs,” CMD of the bank CVR Rajendran said.