Chennai, March 17
ANDHRA Bank is in the process of casting its accounts as per the accounting standards of US GAAP, the bank's Chairman and Managing Director, Mr T.S. Narayanasami, confirmed to Business Line on Thursday.
Does this mean that the bank could go in for an ADR issue? While not denying this, Mr Narayanasami said that any thought on an ADR issue was "a long way away." He, however, said that the US GAAP accounts "would be useful in future."
Sources in banking industry point out that the bank's performance parameters are conducive for an ADR issue. The bank's net interest margin, which is over 4.3 per cent, is among the highest in the industry. Its net NPAs, as of December 31, 2004, stood at 0.11 per cent. The bank is one of the most profitable banks in the country, with a return on net worth in excess of 20 per cent in each of the past five years.
The prices of the Andhra Bank stock are firm, at close to all time high levels.