Andhra Bank has announced its plans to raise up to Rs.4 billion in December this year through a mix of several debt instruments.
Expecting a growth of 25% in terms of advances and 23% in terms of deposits, Andhra Bank is on an expansion mode.
Embarking on an overseas expansion plan, the bank has charted out a roadmap
for venturing into new territories in the US, starting with a representative
office in New Jersey.
With a functioning office in Dubai, Andhra Bank is
working on plans to have a presence in Kuwait, Saudi Arabia, Oman and
Qatar as well.
Its joint venture with the Punjab National Bank and the Bank of Baroda
will take care of operations in Malaysia.
The latent NRI funds are clearly
the banks’ chosen route for growth.
Andhra Bank has also announced its intention to venture into the insurance sector, with both life and non-life products in an alliance with probably a foreign partner.
In the financial year 2006-07, Andhra Bank’s operating profit went up by 32.43%, with total revenues adding up to Rs.3, 762 crore. Deposits went up by 2% over the previous year, while net interest income stood at Rs.1,417.54 crore.