Andhra Bank aims to have a pan-India presence by opening about 220 new branches over two years, according to Chairman and Managing Director R S Reddy.
The bank currently has 1,438 branches, of which 1,004 are in Andhra Pradesh.
Also, as part of its brand building efforts, it launched a new mascot On Monday — a dolphin — and a new corporate message — ‘For all your needs’ — with a graphic ‘enter’ key.
Speaking to the media, Reddy said they had got licence from the Reserve Bank of India for setting up 120 branches last year and would approach the central bank again seeking permission for 100 more branches. The bank has identified about 62 Tier-II and Tier-III cities for setting up these branches.
The bank had raised Rs 520 crore upper Tier-II capital last week from the market for expansion activities. “We will not need any new capital for about two years,’’ Reddy said, adding it had a capital adequacy ratio of 13.22 per cent as against the required statutory 9 per cent. The bank also has a headroom to raise about Rs 2,800 crore further from the market and is yet to use the rights issue.
About 1,100 people will be recruited this financial year in line with the expansion plans. Last year, it recruited 973 people. Explaining the significance of the mascot, he said the bank wanted to be like a dolphin — intelligent, responsive and lovable with a persistent smile. The new message signified what the bank would stand for in the future while the ‘enter’ key symbolised the readiness to implement new technologies.
On whether interest rates would soften due to negative inflation, he said, “We expect a lot of incentives from the government for consolidation and growth in the Union Budget.”
Also Read
The 86-year-old home grown bank is also reviewing the issues relating to service charges on inter-branch transaction. “There is a scope to reduce the service charge but it could not be done away with,’’ the chairman said.
The bank would introduce new products including a family savings account shortly and is bullish on infrastructure, pharmaceuticals, roads and irrigation sectors. It expects to cross Rs 150,000 crore business by September 2010.