Date:16/01/2006 URL: http://www.thehindubusinessline.com/2006/01/16/stories/2006011601211600.htm

Back Andhra Bank upbeat on growth prospects

C.R. Sukumar

Hyderabad , Jan. 15

ANDHRA Bank is bullish on the emerging credit off-take opportunities in the areas of corporate finance, infrastructure, aviation, retailing, housing, education and agriculture and allied areas.

Aimed at warding off the drying up treasury incomes and increasing pressure on margins, the bank proposes to be aggressive in increasing its fee-based revenue stream and enlarging low-cost funds base.

According to its Chairman and Managing Director, Mr K. Ramakrishnan, "the bank's business strategy includes stepping up efforts to reduce cost of funds significantly, increase fee-based revenue substantially and maintain the credit quality levels."

With the help of the ensuing follow-on public issue, the bank would maintain its capital adequacy ratio at 12.45 per cent and have enough headroom to meet the credit opportunities.

"Comfortable capital adequacy ratio with enough headroom enables us to seize the big ticket and safe credit opportunities as and when they arise," he told Business Line.

To carve a niche for itself in the area of selling financial products of other institutions, Andhra Bank has set up a number of exclusive branches.