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Andhra Bank says has Rs. 4,346 crore exposure to firms affected by Coal ruling

State-run Andhra Bank has a loan exposure of Rs. 4,346 crore to companies that have been ordered by the Supreme Court to return coal blocks, its chairman said on Thursday.

Andhra Bank’s total exposure to steel and power companies is between Rs. 12,000 crore and Rs. 13,000 crore, C.V.R. Rajendran said.

Andhra Bank shares were down over 6 per cent by 1:12 p.m., extending Wednesday’s 4 per cent fall after the Supreme Court verdict. Lenders have been hit by worries that the verdict scrapping coal allocations over two decades could lead to a rise in bad loans.

“This is an industry-wide problem,” Rajendran said in a phone interview, adding an early reallocation of the coal blocks could help lower the impact on the companies and the lenders.

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