Andhra Bank may raise up to 30 bln rupees via bonds in FY16
HYDERABAD: City-based Andhra Bank may raise up to 30 bln rupees in 2015-16 (Apr-Mar) via bonds to infuse the capital for the business growth, Chairman & Managing Director C.V. Rajendran said today.
a�?We want to raise 1,500 crore (15 bln rupees) via tier-I and 1,500 crore (15 bln rupees) via tier-II bonds,a�? he said here.
However, Rajendran said the capital adequacy ratio of the public sector lender is at a comfortable level as of now, and any fund raising is subject to better coupon pricing.
As on Mar 31, Andhra Bank’s capital adequacy ratio stood at 10.63%.
During Jan-Mar, Andhra Bank had received 1.20 bln rupees as additional capital from the government. The bank has also raised 5 bln rupees through additional tier-I bonds via private placement.
Rajendran said, as of now, there is no urgent need to go for fund raising, and the bank is not ready to pay higher costs.
He said Andhra Bank is not willing to pay above 9% coupon on tier-I bonds and above 8% coupon on tier-II bonds, if it goes for fund raising during the year.
Today, Andhra Bank shares ended up 1.47% at 76 rupees on National Stock Exchange.