India-based Andhra Bank is, reportedly, planning to shift its focus on retail lending as many of its assets in the infra sector are non-performing or bad.

According to Andhra Bank, its non-performing assets (NPAs) have gone up marginally with gross NPAs at 5% and net NPAs at 3%.

Andhra Bank chairman and managing director, CVR Rajendran, was quoted by The Economic Times as saying that 19% of the assets are in the infra sector – 11% to the power companies and 8% to infra companies, and admitted that the bad loan problem is mainly due to that.

"Now we are shifting our focus to retail lending and hope that this will help us post better numbers next fiscal," Rajendran added.

In order to bring down the NPAs, Andhra Bank is also planning to increase its deposits and advances to INR200bn ($3.22bn) by the end of current financial year.

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