State-owned Andhra Bank will go aggressive on retail lending and proceed to prune credit to state-owned companies to hike business and profitability during this financial year.
A rich growth in advances, surge in interest income, growth in treasury profits and a decrease in bulk deposits aided the bank report a three times increase in net profit at Rs 256 crore for the quarter ended June 30, 2009.
Andhra Bank, a leading public sector lender has decided to set up 500 more branches in the coming four fiscals with the aim to enhance its total branch network to 2000.
The sources close to the bank said that the lender is expanding its network outside Andhra Pradesh by establishing 121 branches this fiscal.
Indian Credit Rating Agency (ICRA) Ltd has made announcement that the company has inked a Memorandum of Understanding (MoU) with Andhra Bank.
Under the proposed MoU, ICRA will give Bank Loan ratings to the Bank's loans under the standardized move of RBI's New Capital Adequacy Framework for Basel-II.
According to the sources, ICRA's ratings for the standardized approach would be executed under its "Line of Credit" rating service and would allow Andhra Bank to give the new risk weights applicable to its borrowers.