Andhra Bank to migrate to head office core banking solution
By Venkatachari Jagannathan Jagannathan | 09 Jan 2006
Chennai: Andhra Bank that has implemented cluster bank based core banking solutions has decided to migrate to head office based core banking solutions. Under cluster bank approach, the bank first networked all its branches in its 16 zones, which were then connected to the head office in Hyderabad. Under the proposed arrangement all the branches will be directly connected to the head office. This will be done at no major additional investment. The pilot project will be completed in February. According to bank's general manager VR Venkataraman, the bank has chosen Laser Panacea the core banking solution of the Chennai-based Laser Soft Infosystems, the company that implemented the cluster bank networking systems.
The bank has 1,117 branches, 142 extension counters, 38 satellite branches and 346 ATMs.
Meanwhile the bank is coming out with a premium public issue of 8.5 crore shares with a face value of Rs 10 each. The price band will be fixed on 15th January 2006. The issue opens on 16th January 2006 and closes on 20th January 2006.
According to AL Nageswara Rao, general manager, out of the total issue, the offer to the public is 7.6 crore and the balance is reserved to the employees. "Fifty per cent of the public issue will be allocated to qualified institutional buyers on a proportionate basis, 15 per cent for the non institutional investors and the balance 35 per cent of the net issue will be available for retail investors." Post issue the government's holding in the bank will come down to 51.55 per cent from 62.50 per cent.
Speaking about the bank's non performing assets (NPA) Venkataraman says, "Andhra Bank has the lowest NPA amongst the public sector banks. As at September 30, 2005, we had net NPA of 0.26 per cent and the gross NPA stood at 2.27 per cent. During the first six months of the current fiscal we have recovered Rs 22 crore NPA."
