Andhra Bank to raise Rs 3,000 crore in FY16: MD

Says on the basis of the bank's performance the govt will provide the remaining Rs 122 crore

State-run Andhra Bank plans to raise Rs 3,000 crore through various instruments including Qualified Institutional Placements as part of meeting its capital requirement, a top official said today.

"Our plan is to raise Rs 3,000 crore. So far the government has provided us about Rs 378 crore out of the Rs 500 crore in the first tranche.

"On the basis of the bank's performance the government will provide the remaining Rs 122 crore..", Andhra Bank Managing Director and CEO Satish Kumar Kalra told reporters here.

Kalra added: "We have planned to raise about Rs 700 crore in the form of QIP. That is only to strengthen our balance sheet".

"Another Rs 1,800 crore we will be raising as tier I and tier II (capital) and we will do that during the next six to seven months," he said.

On the focus for the current financial year, he said the bank would target the micro, small and medium enterprises and retail loan portfolio.

"Overall, we are looking at a 15-16 per cent growth this year" he added.

For the first quarter ended June 30, 2015, Andhra Bank registered 89.2 per cent jump in net profit at Rs 202.52 crore from Rs 107.00 crore registered during the same period of the previous year.

For the financial year ended March 31, 2015, the bank's net profit stood at Rs 638.44 crore.