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Andhra Bank is one of the six banks that was nationalized during the second round in 1980. It is a mid-sized bank with a total business mix of over Rs. 28,000 cr. It has been performing creditably during the last two years. Its level of NPAs is one of the lowest in the banking sector. Its capital base, cost of funds and staff productivity have significantly improved.
Its regional rural banks are not a big drag on the parent and its two subsidiaries are low key players. However, it is yet to convert its credit card business into a profitable proposition.
Andhra Bank, headquartered at Hyderabad is a nationalized bank of medium size, which has displayed impressive performance during the past two years.
Nationalized during 1980, the strength of its branches has grown from 627 (1980) to 1069 (March 2002). Its recent performance is remarkable in areas like capital base, rate of capital expansion, cost of funds, credit expansion, NPA management, retail banking, staff productivity and automation.
Andhra Bank has gone public during February 2001 to raise Rs. 150 cr equity capital. The present capital and reserves base is Rs. 884 cr, whereas it was just Rs. 6 cr during 1980. It had received Rs. 479 cr as recapitalization funds from the government up to 1996-1997. It has returned Rs. 48 cr of capital to the government (2000-2001) and written down Rs. 243 cr of capital against losses during 1998-1999.
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