In order to meet the capital requirement in the current financial year, Andhra Bank is planning to raise Rs 2,700 crore. The Board of Directors of the bank at its meeting on May 30, 2016, reviewed the projections of ICAAP (Internal Capital Adequacy Assessment Process) requirements for the financial year 2016-17 and estimated the requirement of capital/funds of Rs 2,700 crore. The raising of capital (Equity/ Tier 1/ Tier 2 Bonds) will be made at an appropriate time depending on the market conditions, to meet the additional capital requirements during 2016-17.
The bank has reported a steep 82.9% decline in net profit at Rs 34.46 crore for the quarter ended December 2015 on the back of higher provisioning towards bad debt and lower income growth. The net profit for the corresponding quarter previous year stood at Rs 201.71 crore while was in the last quarter ending September 2015 it was Rs 251.26 crore.
