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Andhra Bank is looking at raising about Rs 3,000 crore in Tier 1 and Tier 2 capital through issue of bonds in the current financial year.
“We want to raise both Tier 1 and Tier 2 capital of Rs 1,500 crore each during this year keeping in view the anticipated business growth. We intend to raise Tier 1 capital at 9 per cent interest and Tier 2 capital at 8 per cent interest,” C VR Rajendran, chairman and managing director of Andhra Bank, said here today.
The bank had deferred its plan to raise Rs 500 crore in addition to a similar amount raised earlier last year owing to higher interest rate, according to him. It had received a fresh infusion of Rs 120 crore capital during 2014.
Companies want to come out of CDR
Unable to raise fresh debt from banks owing to the existing loan repayment obligations, several infrastructure companies want to come out of the corporate debt restructuring (CDR) scheme, according to Rajendran. "We have been seeing this new trend where the companies themselves are approaching the banks seeking to come out of the CDR scheme," he told reporters.
Responding to a question on the fresh loan restructuring, Rajendran said though there would still be fresh restructuring of loans, they all would be treated as NPAs.
