The Hindu Business Line : Andhra Bank `intends' to make second public offer

ANDHRA Bank has informed the stock exchanges on Monday that it `intends' to make a second public offer, subject to regulatory approvals. However, the bank said the size, price and timing of the issue would be communicated separately at the `appropriate time'.

The market views the primary objective of the issue as raising funds to meet the business expansion plans of the bank and to have a comfortable capital adequacy ratio even after the Basel II norms were enforced.

As at the end of last fiscal, the bank's capital to risk assets ratio (CRAR) stood at 13.71 per cent.

When contacted, the Andhra Bank Chairman and Managing Director, Mr T.S. Narayanasami, told Business Line that no decision was taken yet on the second public issue and a resolution would be placed before the board at an appropriate time.

"At present, we are quite comfortable with our CRAR and we do not require any capital. We have options to go in for tier-II capital also. However, we may need capital at a later date. "

"We have not discussed the matter in the board meeting so far. We do have plans to go in for second public issue, but want the scrip to get the right price."

"Once the board considers and approves the proposal, we may go in for the issue sometime during the first half of next year," Mr Narayanasami said.

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