Findings:1.

Advances for all sectors are increasing in Andhra bank In Agricultural sector the advances increased by 13% from year 2009-10 to 2010-11 and 20% from year 2010-11 to 2011-12. In Educational sector the loans decreased by 1.5% in 2010-11 compared to previous year and 6.5% from year 2010-11 to 2011-12 The advances for Housing sector increased drastically by 32.7% from year 2009-2010 to 2010-11 and 13.6% form 2010-11 to 2011-12. The loans for Micro and Small sectors increased by 31.6% and 24.4% for the years 201011 and 2011-12. 2. Net profit also increasing with an increase in advances The net profit of the bank increased from 1045.85 Cr. of Rupees in 2009-10 to 1267.07 Cr. of Rupees in 2010-11 which indicates 21.2% growth in net profit. The net profit of the bank increased from 1267.07 Cr. of Rupees in 2010-11 to 1344.67 Cr. of Rupees in 2011-12 show a growth of 6.1% which is very less than the previous year`s growth of 21.2%. 3. Increase of Non-Performing Assets (NPA) Non-Performing Assets of Agricultural sector are rapidly increasing from year 2009-10 to 2010-11 by 346.2% ie from 26 67 Cr. of Rupees in 2009-10 to 116 Cr. of Rupees in 2010-11. And in year 2011-12 the bank has seen an increase in NPA of agricultural sector by 218.9% i.e from to 116 Cr. of Rupees in 2010-11 to 370 Cr. of Rupees in 2011-12. In Micro and Small sector advances the NPA increased by 113.3% in 2010-11 compared to previous year 209-10 and in 2011-12 the NPA raised by 20% from year 2010-11.

Conclusion
Andhra Bank is providing various kinds of loans to cater the needs of individuals and Micro Small Enterprises. The bank is continuously increasing their advances to all the sectors primarily to agricultural sector except educational sector. The profit of the bank also increasing with an increase in advances. The net profit of the bank increased by 21.2% and 6.1% in the years 2010-11 and 2011-12 respectively. This show the health of the bank. High Positive Correlation between Agricultural sector and Net profit, Housing loans sector and Net profit, Micro&Small sector advances and Net profit contributed major part to Net profit. The educational loan sector is correlated negatively with profits shows that less contribution to the profits Bank yield is increasing year by year show that bank able get more income on interest on advances. The profit of the bank also increasing with an increase in advances, however NonPerforming assets (NPA) of Agricultural sector`s and Micro&small sector`s is also increasing. This may affect the profits of the bank in long term.

Recommendations
Andhra Bank should increase their lending to Agricultural sector which is an essential sector in India. Bank should try to improve the yield on the loans. Bank has to be cautious on increasing NPA of Agricultural sector and Micro&Small Enterprises sector. Bank should increase its percentage growth of Net profit otherwise bank will be in trouble in future.