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The tie-up would allow Andhra Bank access to about 290 ATM outlets of IDBI Bank.

Bangalore , Oct. 6

ANDHRA Bank has tied up with IDBI Bank for creating a shared ATM (Automatic teller machine) network.

Briefing reporters here today, the Andhra Bank's Chairman and Managing Director, Dr B. Vasanthan, said the tie-up would allow Andhra Bank access to about 290 ATM outlets of IDBI Bank.

Andhra Bank already has about 242 ATMs installed throughout the country. It was also on the verge of tying up with one more public sector bank to increase the ATM network. He, however, declined to name the bank.

The bank has begun offering a cluster banking solution to customers falling in the region of Andhra Pradesh, Karnataka and Kerala.

This solution, Dr Vasanthan said, would allow branches to be connected to a server in the zonal office through leased lines and with ISDN backup in the first phase. The first phase would allow customers from Hyderabad, Karnataka and Kerala access to their respective accounts in the bank falling within the zone. Under the second phase, all the zonal clusters would be interconnected. Before the year-end, he said, all the metro clusters would be interconnected, allowing customers access to their respective accounts irrespective of the place.

This interconnection would allow the bank's customers to deposit , withdraw or conduct most transactions with the bank anywhere in the country.

Referring the banks capital restructuring, he said, that the board had approved the return of Rs 50 crore of equity to the government. This was now awaiting approval of the Ministry of Finance, he said.

After the government's approval, the bank would take a final decision on the pricing, he added. Andhra bank currently has a capital to risk weighted asset ratio of 16 per cent.

He said that the bank was also keeping its options open for consolidation.

"We are scanning the radar and once we spot the right opportunity, we will move in," he added.

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