The public sector bank will put up the matter at its board meeting for consideration, Andhra Bank said in a stock exchange filing.
Andhra Bank said it received a communication from government stating the bank was identified for capital allocation for 2016-17 as a part of turnaround-linked infusion plan.
"The indicative allocation of capital is Rs 1,100 crore to the bank," it said.
The government has approved the second tranche of capital infusion in public sector banks to enhance their capital base. The second round of funding entailing about Rs 8,000 crore is based on strict parameters.
The government has already announced a fund infusion of Rs 22,915 crore, out of the Rs 25,000 crore earmarked for 13 PSU banks for the current fiscal year.
The first tranche was announced in July with the objective of enhancing their lending operations and enabling them to raise more money from the market.
Stocks of Andhra Bank closed 2.44 per cent higher at Rs 56.65 on the Bombay Stock Exchange or BSE.