Andhra Bank has completed raising of Rs 500 crore tier- I capital on Friday by way of perpetual bonds.
``The yield was 9.55 per cent and we could get by about 85 basis points cheaper than what we were expecting some time back as the prevailing rate then was 10.40 per cent,’’ C V R Rajendran, Chairman and Managing Director told Business Line here on Friday.
There was market appetite and investors had faith in Andhra Bank as it could raise capital at cheaper rates than other banks which did the same in the recent past, he added. The bank had in October announced its plans to raise capital.
Andhra Bank scrip gained 4.40 per cent to end Rs 90.20 on the Bombay Stock Exchange on Friday.