Andhra Bank plans to raise Rs 700 crore through qualified institutional placement (QIP) next quarter.
"This is part of our plan to raise Rs 3,000 crore capital in the current financial year,'' its Managing Director and CEO (Additional Charge), S K Kalra, told newspersons after remotely inaugurating the bank’s 2,600th branch and 3,000th ATM here on Friday.
A bond issue of Andhra Bank is currently on for Rs 500 crore which will be closed by the last week of this month. In addition, Andhra Bank is expected receive Rs 378 crore from the Government. "So, by this month-end, we will have Rs 878 crore capital,’’ he said.
The remaining fund will be raised before the end of March 2016 by way of tier II bonds and also from the Government.
Profitability
For the full year, Andhra Bank expects profitability to the tune of Rs 800 crore. In the first quarter, it had earned Rs 203 crore profit. "Our dream profit target, however, is Rs 1,000 crore for the year,’’ Kalra added.
The gross and net non performing assets could come down to 5 per cent and 2.5 per cent from present 5.75 per cent and 2.93 per cent, respectively, he added.