Andhra Bank plans to set up training institute for bankers

ISB, Andhra Bank sign pact for students' loan package

Andhra Bank proposes to set up an Institute of Management Education in Gachibowli, on the lines of the National Institute of Bank Management in Pune.

"About five acres of land have been acquired for providing training in the banking sector to the top and middle management. As we are still working on the modalities, it is difficult to disclose when it will be functional," said R Balakrishnan, executive director of Andhra Bank, at a press conference held in the city today.

The press conference was held for signing of a memorandum of understanding (MoU) between Andhra Bank and Indian School of Business (ISB), regarding a loan package for the students of ISB under the Dr Pattabhi Vidyajyothi scheme.

According to this scheme students of ISB, in the age group of 18-35 years, will be able to avail a loan up to Rs 13 lakh from Andhra Bank. The rate of interest will be nine per cent and the loan will not require any collateral security. The repayment period will range from five to seven years.

An additional incentive of 0.5 per cent will be given, if the interest is serviced during the gestation period of six months after the completion of the course, besides a concession of 0.5 per cent for prompt repayment. "Students who have already taken loans will be able to shift to this scheme as well," Balakrishnan said.

Andhra Bank is also considering a similar scheme for Indian Institute of Management (IIM), BITS Pilani and Indian Institute of Technology (IIT). "By this December, a loan package will be made applicable to these institutes also," said A L Nageshwara Rao, general manager of Andhra Bank.

Andhra Bank's education portfolio as on September 30, 2004, stood at Rs 470 crore, according to T S Narayanasami, CMD of Andhra Bank.