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Andhra Bank is not traded on NSE in the last 5 days
Andhra Bank is not traded on BSE in the last 5 days


Directors of your Bank are happy to present the Annual Report of the Bank together with the audited Statement of Accounts and Auditors' Report for the financial year ended March 31, 2016



The global economic activity slowed during FY 2015–16, across economies barring few exceptions. The sluggish global growth has impacted the growth of Indian Economy and consequent investment and credit demand. The Estimates of GDP that the Central Statistics Office (CSO) released recently, the growth rate of GDP at constant market prices is at 7.6 per cent in 2015–16, mainly because private final consumption expenditure has accelerated. In GVA terms: Agricultural sector growth improved during FY 16 to 1.2% from –0.2% in FY 15; Industry has shown significant improvement primarily on account of the acceleration in manufacturing (7.4 % vis–a–vis 5.9 % in FY 15). Meanwhile, services sector growth decelerated to 8.9% from 10.3% in FY15. FY 2015–16 began on a strong positive note however; the high expectations were moderated during the course of the year tracking global developments and pace of domestic policy actions. In sum, recovery in the economic activity and investment cycle has begun in FY 2015–16, but the full effects on output are the matter of expectations.

1.2 Monetary and Liquidity Conditions

During the financial year 2015–16, the stance of monetary policy has continued to be accommodative. Barring transient periods of surpluses the liquidity conditions generally tightened in the second half of the year beginning from mid–October . The Average CPI inflation rate has come down to 4.9% during FY 2015–16 from 5.9% in FY 2014–15. RBI has cut repo rates by 75 bps points between April 2015 and March 2016.

1.3 BoP and External Sector

The external position appears robust. The current account deficit is at comfortable levels at 1.4% of GDP. There was an accretion to foreign exchange reserves, taking their level to US$ 355.6 billion as on March 25, 2016, equivalent to about 10 months of imports. India was well–positioned to absorb the volatility. Although the rupee has declined against the dollar, it has strengthened against the currencies of its other trading partners.

1.4 Equity Markets

During 2015 – 16, the resources mobilized through primary securities market have gone up. 108 companies have accessed the capital market as compared to 88 issues last year. Among the public issues, there were 74 IPOs and 21  public debt issues. During the year the gains from secondary market have moderated as compared to the last year. The BSE sensex return has fallen to –6.2% as compared to 24.9% registered during the last year.

1.5 Bond Markets

The 10–yr Benchmark yield softened during FY 2015–16, the average yield softened to 7.8% in FY 15–16 from 8.3% in FY 14–15. The yields of G–Secs started to ease ahead of the monetary policy easing cycle but firmed up through the second half of 2015–16. After the announcement of the Union Budget, however, yields steadily eased to 7.6% by March'16.

1.6 Trends in Banking Industry

The Banking business muted during the FY 2015–16. Despite a higher real interest rate on Deposits, the incremental growth in deposits of All Scheduled Commercial Banks was low at 9.9% this year as compared to 10.7% of last year. Credit growth gradually picked up during the second half led by reduction of repo rates by RBI and consequential base rate cuts by the Banks. The overall credit growth for the FY 2015­16 was 11.3% as compared to 9.0% in FY 2014–15.


2.1 Business

For the financial year ended 31st March 2016, Andhra Bank's Business stood at Rs. 3,10,673 recording an increase of Rs. 26085 Crore from Rs.2,84,588 Crore as on 31.03.2015, with a growth rate of 9.2% (y–o–y).

2.2 Deposits

Andhra Bank's Total Deposits stood at Rs. 174302 Crore as on 31.03.2016, recording an incremental growth of Rs 19290 Crore (12.4 %) over the previous year. The share of CASA deposits (current and savings) in Total Deposits stood  at 26.08%.

? Current Deposits stood at Rs. 7541 Crore as on 31.03.2016 as compared to Rs. 9706 Crore as on 31.03.2015.

? Savings Bank Deposits increased to Rs 37924 Crore as on 31.03.2016, from Rs. 32696 Crore as on 31.03.2015, growing at a rate of 16%.

? Term Deposits increased from Rs. 112610 Crore as on 31.03.2015 to Rs. 128828 Crore as on 31.03.2016, registering a growth rate of 14.4%.

2.3 Advances

Gross Bank Credit increased by 5.2% from Rs. 129576 Crore as on 31.03.2015 to Rs. 136371 Crore as on 31.03.2016.  Credit to Agriculture Sector (incl RIDF & non priority) stood  at Rs. 24679 Crore as on 31.03.2016 as against Rs. 20338 Crore as on 31.03.2015 registering a growth rate of 21.3%.

Credit to Micro, Small and Medium Enterprises (MSME) increased from Rs. 20258 Crore as on 31.03.2015 to Rs. 23278 Crore as on 31.03.2016 registering a growth rate of 14.9%.

2.4 Profitability

2.4.1 Total Income for the financial year 2015–16 increased by 7.4%, from Rs.17,868 Crore during financial year 2014–15 to Rs. 19,199 Crore. Non–Interest Income increased to Rs. 1,564 Crore compared to Rs. 1,499 Crore in the previous year. Operating Profit of the Bank increased to Rs.3,960 Crore compared to Rs. 3,298 Crore in the previous year registering a growth rate of 20.1%. Net Profit stood at Rs. 540 Crore for the financial year 2015–16.

2.4.2 The Total Interest Income recorded a growth rate of 7.7% and increased from Rs. 16,369 Crore during 2014–15 to Rs. 17,635 Crore during 2015–16. Of this, Interest Income from Advances grew by 5.7% from Rs. 12,742 Crore during 2014–15 to Rs. 13,467 Crore during 2015–16. Interest Income from investments increased by 10.5% from Rs.3509 Crore during 2014­15, and stood at Rs.3876 Crore during 2015–16.

2.4.3 Out of total Non Interest Income, Fee Based Income for the financial year ended 31.03.2016 stood at Rs.158 Crore.

2.4.4 Total Expenses during the financial year 2015–16 were Rs.15,239 Crore against Rs. 14,570 Crore during the previous year. Of this, Operating Expenses stood at Rs. 2925 Crore. Establishment Expenditure as a percentage of Total Expenditure stood at 11.38% for the financial year ended 31.03.2016


The appropriations made out of Net Profit are shown in Table 2. An amount of Rs. 134.96 Crore was transferred to statutory reserves during 2015–16, and with this, the statutory reserves now stand at Rs. 2751.91 Crore. Transfer towards Dividend (including Dividend Tax) amounted to Rs. 41.43 Crore


The Bank has done considerably well in key financial ratios, given the performance of the Industry as a whole. Net Interest Margin (NIM) stood at 3.18% compared to 3.00% in the previous year. Cost to Income Ratio stood at 42.49%, as compared to 45.37% for the previous year. Earnings per Share (EPS) stood at Rs.8.60 and Book Value per Share (BVPS) stood at Rs.150.68


As per the Reserve Bank of India guidelines, the start date for  implementation of Basel III guidelines in India is w.e.f. April 1, 2013. Accordingly, w.e.f. April 1, 2013, the Bank has been assessing its Capital Adequacy as per Basel III prescriptions.

The total Capital Funds of the Bank are at Rs.15732.74 as on March 31, 2016 and the Capital Adequacy Ratio at 11.58% is above the required RBI prescribed norm of 9.625%.


The Total Business (Total Deposits plus Gross Bank Credit) of the Bank registered a growth rate of 9.2%, up from Rs.284588 Crore as on 31.03.2015 to Rs. 310673 Crore as on 31.03.2016.

3.1 Aggregate Deposits

Aggregate Deposits (excluding inter–bank deposits) went up from Rs.154974 Crore as on 31.03.2015 to Rs.174233 Crore as on 31.03.2016, registering a growth rate of 12.4%. Aggregate Deposits comprised of current deposits of Rs. 7482 Crore, savings deposits of Rs. 37924 Crore and term deposits of Rs. 128828 Crore.

3.2 Gross Bank Credit

For the Financial Year ended 31.03.2016, Bank registered a growth rate of 5.2% in Gross Bank Credit over the previous year adding Rs. 6794 Crore during the year, to reach Rs. 136371 Crore as compared to Rs.129576 Crore for the Financial Year  ended 31.03.2015

3.2.1 Priority Sector Lending

Priority Sector advances of the Bank stood at Rs. 54,545 Cr (including Rs.416 Cr Under RIDF and other funds) at the end of March 2016, registering a y–o–y growth of 21.31% and absolute increase of Rs.9585 Cr. As against statutory requirement of 40% of ANBC, Bank recorded 41.88% under Priority Sector as on 31.03.2016 Credit to Agriculture

Total agricultural (Priority) lending of the bank stood at Rs.24,080 Cr as at the end of March, 2016, which includes eligible investment under RIDF of Rs.306 Cr. as against statutory requirement of 18% of ANBC, Bank has reached 18.49% as on 31.03.2016. Lending to Self Help Groups (SHGs)

Bank has extended financial assistance to 239133 self help groups with total exposure of Rs.5,376 Cr as on 31.03.2016.

3.2.2 Lending to Micro & Small Enterprises (MSE)

Total advances to micro & small enterprises of the bank was at Rs.20,988.48 Crores as at the end of March'16, registering a y–o–y growth of 21.79%. The absolute growth during the period is Rs.3033 Crores.

3.2.3 Credit to Weaker Sections

Advances to weaker sections stood at Rs.16,054 Crores i.e., 12.33% of ANBC as against norm of 10%.

3.2.4 Credit to Minorities

Total credit extended to minority communities was at Rs.4983 Crores i.e., 11.08% of Priority Sector advances as against norm of 15%.

3.2.5 Credit to Women

Total credit extended to women beneficiaries was at Rs.16,203 Crores i.e., 11.88 % of Net Bank Credit as against norm of 5%.

3.2.6 NPA under Agriculture

Out of Total Agricultural advances of Rs.24679 Cr (including Agri–Non priority) as on 31.03.2016, NPA under Agriculture is Rs.1094.83 Cr i.e., 4.44% of Gross NPA as against 5.29% of Gross NPA as on 31.03.2015

3.2.7 Andhra Bank Rural Development Trust:

Andhra Bank Rural Development Trust is running 13 Rural Self Employment Training Institutes in A.P (9), Telangana (1), Odisha (2), Kerala (1) states and imparting need based training for capacity building/entrepreneurial development and dissemination of knowledge to farmers, SHG women, Rural unemployed youth and artisans.

Since inception, 148947 candidates have been trained through 5049 programs by the Institutes and around 79% of the trained candidates are engaged in gainful ventures. During the year, the institutes imparted training to 11023 candidates through 447 programs.

All our eleven RSETIs (2 RSETIs were recently opened) have been awarded with highest rating "AA" by Ministry of Rural Development, Government of India for the year 2014–15.

3.2.8 Financial Literacy and Credit Counseling Centres

Bank has established Jana Chetana Financial Literacy and Credit Counseling Trust and running six Financial Literacy Centres in all Lead Districts. Bank is in the process of opening another 25 FLC centres at various places in A.P. These centers are promoting financial literacy activities through campaign mode and providing service related extension services. All our Rural Branches and RSETIs are organizing Financial Literacy Camps in the villages by utilizing the services of local artists/ magicians and organizing Kala Jataras.

3.2.9 Village Visits:

Bank has started 'Village Visits' (Palle Bata) on every Wednesday in Andhra Pradesh state w.e.f 06.01.2016 as per the advice of SLBC, AP. All Rural/Semi–urban branches having service area villages have to visit the villages on every Wednesday and Urban/Metro/Newly opened branches, having no service area, have to conduct 'Customer Meet' at branch premises. Now it is being implemented across the country in Andhra Bank. This program is being implemented by all branches to improve their 'CONNECT' with the target group

3.3 Credit to MSME Sector

• As on 31.03.2016 216094 MUDRA loans are sanctioned and an amount of Rs. 1569.36 crores is disbursed.

• Keeping in view of the importance of MSME sector in the economy our Bank introduced the following:

• 25% of assessed turnover can be allowed as working capital credit limit under turnover method up to Rs. 6.00 crores instead of the existing 20% of the projected turnover.

• ABHIVRUDHI Scheme "Financing to MSEs (Micro and Small Enterprises) up to Rs. 3.00 crore against property" wherein assessment of credit limits is simplified and obtention of CMA data is waived.

• To bring down the Turnaround Time (TAT), our Bank has established SMExpress for centralized processing of MSME proposals in eight places i.e. at Hyderabad, Chennai, Pune, Coimbatore, Visakhapatnam, Guntur Bangalore and Hyderabad.

• There are 19 Specialized MSME branches operating in the states of Andhra Pradesh, Telangana, Orissa, Tamilnadu, Punjab and Chattisgarh to tap the potential business in MSME sector

3.4 Retail Lending

The Bank's Retail Credit portfolio stood at Rs. 24,428 crore as on 31.03.2016 as against Rs.19846 crores as on 31.03.2015, with year on year growth of Rs.4582 crs. The segment has registered a growth of 23% on YOY basis including deposit loans and credit card.

Housing loans portfolio has increased from Rs 9688 Crs as on 31.03.2015 to Rs.11,811 Crs as on 31.03.2016 with absolute growth of Rs 2123 crs registering a growth rate of 22%.

Vehicle Loans portfolio has increased from Rs 819 Crs as on 31.03.2015 to Rs.1046 Crs as on 31.03.2016 with absolute growth of Rs 227 crs registering a growth rate of 28%.

Education loans portfolio has increased from Rs.1831 Crores as on 31.03.2015 to Rs.2234 Crores as on 31.03.2016 with absolute growth of Rs.403 Crores registering a growth rate of 22%

Loans against property (Mortgage Loans) portfolio has increased from Rs.331 Crores as on 31.03.2015 to Rs.1027 Crores as on 31.03.2016 with absolute growth of Rs.696 Crores registering a growth rate of 210%.

Bank has waived processing charges on Housing Loans and Vehicle Loans from 14.09.2015 to 30.06.2016.

Bank has reduced rate of interest on Loans against property (Mortgage Loans) portfolio from 12.90% p.a to 12.15% p.a.


In terms of RBI guidelines, the Bank is required to invest in SLR securities to the extent of 21.50% of NDTL. Bank's investment decisions are based on risk–return trade–off and bank is scrupulously following the regulatory and internal guidelines. Statutory prescriptions relating to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are complied with and being monitored on a continuous basis. Risk Management in treasury operations has been strengthened further by undertaking stress testing and back testing of the investment portfolio at quarterly intervals, besides daily monitoring of Duration and Value–at–Risk (VaR). External rating migration of the bonds and debentures portfolio is also being monitored on quarterly basis.

As on 31.03.2016, the Investments (net of depreciation) increased by 15.84% and stood at Rs.53864.19 Crore, up from Rs. 46499.43 Crore as on 31.03.2015. SLR maintained as on 31.03.2016 was Rs. 45623.95 Crore, which constituted 25.41% of Net Demand and Time Liabilities (NDTL). Interest income from investments increased from Rs. 3508.55 Crore in 2014–15 to Rs. 3875.86 Crore in 2015–16. Profit on sale of investments stood at Rs. 230.55 Crore during 2015–16, while it was Rs.374.07 Crore during 2014–15.

4.1 Strategic Investments

4.1.1 Joint Venture Insurance

Our Bank is having Joint venture in insurance with Bank of Baroda and Legal and General Plc of UK christened India First Life Insurance Co. Ltd. Our stake in the venture is 30% while Bank of Baroda holds 44% and Legal and General Plc holds 26% stake. Both the banks have commenced sale of insurance policies through their branch outlets. Our investment in the life insurance venture is Rs. 187.50 Crore.

4.1.2 Banking subsidiary in Malaysia

The Bank, along with Bank of Baroda and Indian Overseas Bank, has entered into a tie up for setting up a banking subsidiary in Malaysia. The Bank's stake in the venture is 25%, amounting to RM 82.50 Million (book value Rs. 143.28 Crore), in a total subscribed capital of RM 330 Million (approximately Rs.559.35 Crore @ 1 RM = Rs. 16.9500 as on 31.03.2016).  The joint venture vz. INDIAINTERNATIONAL BANK (MALAYSIA) BHD commenced business on 11.07.2012. The joint venture bank has a business of Rs 328.58 Crore at the end of 31.12.2015.

4.1.3 Bombay Stock Exchange

United Stock Exchange of India Ltd which was promoted by a consortium of banks, Canara Bank, Bank of Baroda, Allahabad Bank, Bank of India, Indian Overseas Bank and Oriental Bank of Commerce of which our bank is also a partner. The Bank's Investment in United Stock Exchange of India Ltd. is ? 3 Crore. During the year, USE is amalgamated with Bombay Stock Exchange and we were allotted 77922 shares of bSe with a Face Value of ? 1 per share @ Rs 385 per share amounting to Rs 3 crore.

4.1.4 Metropolitan Stock Exchange of India Ltd. (MCX Stock Exchange Ltd.

The Bank's investment in the equity of MSEI is Rs 25 Crore. The Exchange commenced trading in Equity Cash and Equity Derivatives from February 11, 2013.

4.2 Treasury & Forex Business

The Bank is an 'Authorised Dealer', to deal in foreign exchange business through 56 designated B category branches of the Bank. The Bank has speed remittance arrangements with two Exchange Houses based in Gulf.

Systems have been put in place for management of country risk, exchange risk and other foreign exchange risks. The country risk exposures for single country risk limit and aggregate risk limits for the group of countries under each risk category are fixed and are being monitored on daily basis.

During the year 2015–16, the Bank recorded a merchant turnover of Rs 34,059.08 Crore in Forex. The bank achieved Inter–Bank turnover of Rs 4,94,560.91 Crore as on 31.03.2016 compared to Rs 4,83,250.08 Crore as on 31.03.2015. Export finance of the Bank stood at Rs 4467.02 crore as on 31.03.2016.


Our Bank is a Pioneer in Credit Card Business, both as Issuer and Acquirer (Merchant Business) since 1981. Excluding SBI, among other Public Sector Banks, our Bank is having major Market Share in the Credit Card Business

We have launched Complaint Tracking System through FINACLE menu for speedy redressal of Card holders grievances.

We have introduced EMI facility to our card holders

WE have now launched Application Processing software in FINACLE for sanction of Credit Card under HCCDAPP Menu. All Branch Heads are delegated with powers to sanction card limit up to Rs.1.00 lakh. This is a historic development by which card can be delivered to the applicant within T + 5 days.

SMS based services – 9 types of card holders requirements are enabled.


A Shareholders and Investor Relation Section is functioning as a part of the Division. The Bank has received 9 complaints and 6553 requests during the Financial Year 2015–16. All the complaints and requests have been redressed by the Bank.

The Bank has raised Rs.500.00 Crores by issuance of 8.58% – 10 years Basel–III Compliant Tier–II Bonds (Series–A) and Rs.500.00 Crores by issuance of 8.63% – 10 years Basel–III Compliant Tier–II Bonds (Series–B) on private placement basis through bidding route to augment Tier–II capital and overall capital of the Bank for strengthening the Capital Adequacy as per Basel–III requirements and for enhancing the long term resources.

The Bank has also raised Rs.800 Crores through the issuance of 10.95% – Basel–III Compliant Additional Tier–I Perpetual Debt Bonds on private placement basis to augment Additional Tier–I Capital and overall capital of the Bank for strengthening the Capital Adequacy as per Basel–III requirements.

An Annual General Meeting of shareholders of the Bank was held on 08.07.2015 seeking shareholders' approval for adoption of audited annual accounts of the Bank for the FY 2014–15, to declare dividend on equity shares of the Bank for the FY 2014–15 and to approve raising of capital through Qualified Institutional Placement / Follow–on Public Offer, etc.

The Bank has declared a dividend of Rs.2/– per share on 60,28,46,791 equity shares of the Bank for the FY 2014–15 amounting to Rs. 120.57 Crores with the dividend pay–out date as 17.07.2015.

The Bank conducted an Extraordinary General Meeting of shareholders of the Bank on 23.09.2015 and sought shareholders' approval on raising of capital by issuance of equity shares by way of preferential allotment to Government of India on infusion of Rs.378 Crores by Government of India towards share capital of the Bank. The Bank issued and allotted 4,94,63,491 equity shares of Rs.10/– each at a premium of Rs.66.42p. per share to Government of India on preferential basis. With this infusion, the Government's stake has increased from 61.0183% to 63.9742% of the total share capital of the Bank of Rs.652.31 Crores

The Bank has also conducted an Extraordinary General Meeting of shareholders of the Bank on 21.03.2016 and obtained approval of shareholders for raising of capital by issuance of 2,88,53,210 equity shares of Rs.10/– each at a premium of Rs.37.30p. per share aggregating to Rs.136.48 Crores to Life Insurance Corporation of India. With this, the holding of Life Insurance Corporation of India has increased from 10.7181% to 14.50% of total paid–up capital of the Bank. After this allotment, the total paid–up capital of the Bank is Rs. 681.16 Crores and the stake of Government of India has come down from 63.9742% to 61.2643%.

Application Supported by Blocked Amount (ASBA):

SEBI vide Notification dated 10.11.2015, has mandated that all the investors applying in a public issue shall use only Application Supported by Blocked Amount (ASBA) facility for making payment. ASBA facility was enabled on August 24th, 2009 through our bank. As on March 31st, 2016, total 2749 branches of the Bank across PAN India were enabled to accept ASBA applications. We have also extended the facility through our Net Banking Channel where customers can bid online hassle free .


The Bank has been constantly focusing on augmenting non–interest income through diversification of income streams by taking up marketing of life and non–life insurance products, Mutual fund products, Depository Services, Direct taxes, Commercial taxes, Municipal taxes, utility payments, Payment gateway services, Auto–Debit facilities etc.

7.1 Insurance

The Bank along with Bank of Baroda and Legal & General Group Plc of UK has formed a joint venture life insurance company named IndiaFirst Life Insurance Co Ltd and it was formally launched in the month of March 2010. The Bank has shareholding of 30% in the company, while Bank of Baroda has 44% and 26% is held by Legal and General Group Plc.

During the FY 2015–16, total New Business premium (including Retail and Group business) of Rs. 131.38 Cr was mobilized. Renewal premium of Rs. 114.70 Cr was collected up to 31.03.2016. Bank earned commission of Rs. 16.17 Cr from sale of Life Insurance Policies.

7.2 Mutual Fund Business

The Bank is having tie ups with Mutual Fund companies, namely, UTI Mutual Fund, SBI Mutual Fund, Principal Mutual Fund, Tata Mutual Fund, Sundaram Mutual Fund, Reliance Mutual Fund, Birla Sun Life Mutual Fund, Fidelity Mutual Fund, Kotak Mutual Fund, LIC Mutual Fund and Baroda Pioneer Mutual Fund.

7.3 Depository Services

Bank is offering depository Services to the public under the brand name of "AB Demat". The Bank is a Depository Participant (DP) with Central Depository Services (India) Limited (CDSL) as well as with National Securities Depository Limited (NSDL).

7.4 Government Business Department

• Interface with Website of Central Board of Excise and Customs to facilitate collection of Excise duty, Customs and Service Tax for our Net Banking constituents is completed and is in live operation.

• Customization of online payment system for VAT and Commercial Tax in the State of Uttar Pradesh is completed and the module is in live.

• Collection of Delhi VAT in the NCT of Delhi through e–mode is completed and the module is in live.

• Collection of all TamilNadu Govt. taxes – Online is completed and the module is in live.

• Government of Madhya Pradesh & Chhattisgarh have approved our Bank for collection of Commercial Tax viz. Central Sales Tax, VAT, Entry Tax, Trade Tax through E–mode. Customisation is in progress.

• Government of Karnataka & Gujarat have approved our Bank for collection of Commercial Tax viz. Central Sales Tax, VAT, Entry Tax, Trade Tax through E–mode. Customisation is in progress.

• E–mode for collection of fees for online citizen services using Payment Gateway under e–Panchayat initiative in the State of Andhra Pradesh. – In Live.

• Electronic Fund Management System (EFMS) for Aarogyasri Trust (AP) to enable bulk upload of payments to various beneficiaries including hospitals. –Testing is completed and will go live shortly.

• Online upload of e–receipts of both the States of AP and Telangana pertaining to Govt Treasury to the portal of  RBI E–Kuber.

• Direct fund transfer to the beneficiaries under Swachha Andhra Corporation and Swachha Bharat Mission.

• Collection of fees for AP Skill Development Corporation under Personnel Management Skill Development and general trainings.

• Online collection of processing fee/EMD and other receipts using NEFT/RTGS for AP Industrial Infrastructure Corporation Ltd.

• Distribution of welfare grants to beneficiaries from Labour Welfare Commissioner, Andhra Pradesh.

• CBDT– Approval received for collection of Direct Taxes for 521 Branches additionally (earlier 817 Branches) –Total 1338 branches were enabled with CBDT module.

• COLLECTION OF DIRECT TAXES – Total of 41 Focal Point Branches have been authorized by RBI.

• Govt. Business during 2015–16 has witnessed a y–o–y growth of 19%.

• Income on Govt. Business is to the tune of Rs. 11.24 cr for the year (2015–16).

• Large Govt. corporate like A.P. Pollution Control Board, AP Waqf Board, AP Labour Welfare Dept.,NREGS are in our fold

•We were given the Principal Banker status for the AP Capital Regional Development Authority (APCRDA).

•Senior Citizen Savings Scheme (SCSS) : A total of 418 branches were enabled to operate this scheme.

•The software developed on the portal for AP Sarva Siksha Abhiyan provides for the generation of grant–wise information (intervention) from any of the accounts linked to this portal. Our bank has also provided two helpdesks one at DIT and another at HO.

•We have provided the BILLCOLL facility to AP state board of Intermediate education (APSBIE), TSBIE and Sthreenidhi credit coop Fed Ltd, A.P. (loan recoveries)

•We have provided National Automated Clearing House (NACH – disbursement module) facility to MEMPA, A.P., APSRTC, Labour Welfare Board, TS Livestock Development agency (TSLDA) etc.

•Collection of Traffic police challans – online , Govt. of Telangana through Payment Gateway – Module is completed and live.

•Sukanya Samriddhi Scheme and Kisan Vikas patra Scheme have been implemented successfully in 418 authorised branches of our bank


Crop Insurance:

Branches are providing loans to farmers for the purpose of crop production requirements. Currently, branches are computing premium manually and debiting accounts. Declaration forms are prepared manually and submitted to Agriculture Insurance Company (AIC). The problem Associated in the above practice is wrong premium collection, missing of accounts from the coverage and non–remittance of premium to AIC.

To minimize the above difficulties Finacle system support for debiting crop insurance is provided:

• As a onetime measure user has to create the land database for the crops financed by them. Then based on the State/ District/Mandal/ Village, land extent, amount of advance and category of farmer system will calculate the premium amount and debit the accounts. System will also provide the details of accounts for which insurance premium is not debited.

• System will also generate the declarations as per AIC formats.

• Crop wise/Village wise/Insurance scheme wise declarations in the format given by AIC can be generated from the system

Customs Duty/Excise/Service Tax payment:

Bank is authorized to collect different types of Indirect tax payments like Customs duty, Excise and Service tax online. The feature is now made available on Internet Banking for retail and corporate customers which will allow the users to pay the tax using IEC code/Assesse code assigned by the department.

Payment Gateway Integration with SBIePay, Payu, Citrus, EBS, and Times of Money:

Bank has tied up with Payment Gateway services provider like SBIePay, Payu, Citrus, EBS, and Times of Money and integrated the same with Internet Banking through which Internet Banking Retail customers can pay different types of utility bills to the merchants enabled at the payment gateways.

Online IB Transaction password resetting:

A new feature has been introduced to retail and corporate Internet Banking customers to allow them to set transaction password on their own. Retail customers can use ATM debit card and reset where as corporate customer should have registered and activated Hardware Token. User can also enable/disable the transaction password using the option provided under Manage tab in Internet Banking.

PMJBY/PMSBY request seeding through Internet Banking / ATM :

Internet Banking Retail customers can give a request for PMSBY and PMJBY insurance schemes using the option provided under PM Jan Dhan's Jan Suraksha Scheme Enrollment link provided in Home page of Internet Banking. This facility is enabled in Banks ATMs / SMS / Internet Banking Channel.

PMJDYTOD through SMS Mode

For enrolment to Pradhan Mantri Jan Dhan Yojana TOD, a new module is developed for receiving request from customer through SMS / ATMs. The customer mobile number should be registered with the bank for SMS alerts and should be eligible for the scheme. Customer will receive two SMS i.e confirmation SMS on enrollment and on TOD Approval.

Online RD opening through Net Banking:

Retail customers can now open online Recurring deposit through Internet banking using the option provided under REQUESTS tab. Once the account is opened the same will appear in self funds transfer to allow further credits.

Online Standing Instructions:

This facility is enabled for retail customers in Internet Banking. Under 'Standing Instructions Request' module customer can place request for Modify / Delete / Inquire a standing instruction through NetBanking. Standing instructions can be created by the retail customers for periodical transfer of funds to RD account, Loan account and other accounts of self/third party.

Online e–TDR & Online Term Deposit / Recurring Deposit Closure:

Retail customers can give a request for closure of term deposit and recurring deposits using the option provided under REQUESTS tab of Internet Banking. The accounts opened through online will only come for closure. In case the deposit receipt is printed at the branch end, those accounts will not appear for closure even though the account is opened through online.

Mobile Banking Registration/Deregistration/mPIN Generation:

Internet Banking Retail customers can give a request for registration, deregistration and MPIN using requests tab. The requests will be processed offline and the facility is not available for the users having VIEW only facility in Internet Banking.

Immediate Payment Service (IMPS) through Branches:

New module is developed in Finacle to enable IMPS transaction at branches. Using IMPS through Branch module, customer can remit funds to other bank customers instantly using account number and IFSC. Facility is enabled for both walkin customer and our Bank customers. Walkin customer can remit funds through cash upto Rs. 49,999/– and our Bank customers can remit through account upto Rs. 2 lacs per transaction.

Utility Bill Payments For Retail Customers Through M/S Paytm PG Services Provider:

PayTM payment gateway services was integrated with our internet banking on 30/12/2015. With this facility our Bank retail internet banking customers can make payments online for merchandise purchased from the merchants enrolled by PayTm.

Andhra Bank Cube:

Bank has launched cobranded wallet with M/s Citrus. Using this digital personal finance manager Mobile App, Customers can perform following activities

a. Create payment reminders for Digital, Cash and Cheque payments.

b. Integrated Payment Gateway supporting Card based, Account based and Citrus' Digital Cash based payments.

c. The Wallet capability in the app supports Saved Cards and Prepaid Cash payments seamlessly.

d. Payment tracker by account presents 6 month view of the payments made through AB Cube or Offline.

e. Ability to replace cash collection – education, P2B (Merchant Payments), P2G (Govt Taxes) type payments using AB Cube

f. Now available in Android version; iOS version will be launched shortly.


Bank in association with BSNL and Pyro has successfully launched the cobranded prepaid card SpeedPay. SpeedPay is an open loop mobile wallet which can be used by customers for Airtime Recharges, DTH Recharges, Postpaid Bill Payments, Landline Bill Payments & Utility Bill Payments. Its a open loop mobile wallet which allows transfer of funds from wallet to bank account and also cash withdrawals.

Social Media listening and response management:

Bank has implemented Social Media listening and response management on an opex model. The basic idea of implementing this solution is to have insight into what young generation is talking about Bank on social media, understand their expectations, to get information on complaints made by customers on social media, to get honest feedback from customers on e–products etc.

Social Media Listening:

The solution provided has crawlers/connectors, which gathers data from various social media platforms ( eg: facebook, twitter, Google+, mouthshut etc) and news sources ( NDTV, CNN IBN etc) on the internet. It gathers information as to what people are talking about Andhra Bank. The tool has the ability to monitor billions of conversations and generate text analytics based on predefined criteria. The tool used is Radian6. The dashboards are shared daily showing the details of total number of posts, duly classified as positive, negative & neutral.

Social Media response management:

The customer comments are categorized as "Positive", "Neutral" and "Negative" and report is provided to bank team daily. Bank staff is providing the required response which will be posted as responses for the customer comments, on the respective website.

Further Bank has also created official pages in Facebook and Twitter and we are making frequent posts about our various products and services.

Sovereign Gold Bonds

To reduce the demand for physical gold, Government of India has introduced Sovereign Gold Bond Scheme. Necessary customization was done in Finacle in order to facilitate the branches to enter the subscription details in Finacle without using RBI e–kuber portal. At end of the day, the entire data will be sent to RBI in electronic form for issue of the bonds.

Housing Loan Lead through Mobile Application

A new option is enabled on AB e–Passbook Mobile App to capture Housing Loan Lead. This option is available for our existing customers as well as for new customers. Once lead is captured, immediately it shows the lump–sum eligible amount as per data entered. This data is shared with Retail Credit Department along with mobile number of the prospective customer. The lead will be processed by Retail Credit Department by contacting them. Retail Credit Department is provided with a portal where all leads are displayed and authorised users are allowed to access this portal to process the leads.

Online SB Account Opening

Online SB Account Opening is enabled through our website (Online Services>Online Savings Account Opening). Using this facility, any resident Indian can apply for opening of Saving Bank Account online. Each application submitted online is identified using a Unique Tracking ID for each successful request.

Branch has to verify all the online customer requests pertaining to branch using menu 'HSBOA' in CBS. The request will be available for verification after T+1, where T is the date of online request submission. Branch can verify the request using Track ID, on personal visit of the customer to his/her opted branch within 15 days. After 15 days, system will automatically delete customer account opening requests which are in entry status.

APY through SMS Mode

For enrolment to Atal Pension Yojana, a new module is developed for receiving request from customer through SMS. The customer mobile number should be registered with the bank for SMS alerts and should be eligible for the scheme. This data will be sent to FI Cell HO for further processing.

Vidyalaxmi Portal

This portal was developed for processing the education loan applications received on Government Vidyalaxmi portal. The applications once uploaded to this portal gets automatically updated to LAPS module. XML file generation for reverse upload to government site for updating applications' status is also developed.

Integration of Online Application Entry and Tracking System with LAPS Module:

In tune with market demands, option is now provided in Bank website to let prospective borrowers place loan requisitions online. This facility would enable prospective borrowers to calculate eligible loan amount online, after entry of preliminary details. When borrower submits these details seeking the loan, a unique reference number would be generated, and this number would be communicated to the borrower by SMS and e–mail. This reference number would help borrowers track the status of their loan proposal, online. Further processing of loan proposal, would take place procedurally, after completion of KYC compliance and due diligence.

Online contribution to PPF:

Internet Banking Retail customers can now link their PPF accounts and carry out funds transfer to PPF accounts. Retail customers can link their own PPF accounts or third party accounts by initiating transaction to that PPF account, and can generate the statement for the credits done through branch as well as through internet banking.

Cash Recyclers:

Bank has installed 1133 Cash Recyclers, which can accept as well as dispense cash 24 x 7 & credit to loan account is also enabled in Cash Recyclers.

APEPDCL bill payment through ATM:

APEPDCL Power bill payment is enabled through Andhra Bank ATM. Users with Bank debit card can make payment through this facility.

Sukanya Samridhi Yojna

The Sukanya Samridhi Yojna, also known as girl child prosperity scheme was introduced by Govt of India. Sukanya Samridhi account is to ensure a bright future for girl children in India. This yojna is to facilitate them proper education and carefree marriage expenses. This scheme offers a small deposit investment for the girl children. One of the key benefits of the scheme is that it is quite affordable and offers one of the highest rates of interest. Interest rates are fixed and will be communicated by GOI every year. The module was developed in Finacle wherein branches which are designated for PPF & SCSS can open accounts under this scheme.

Rupay Platinum Debit Card

Rupay Platinum Debit Card was launched by Bank on NPCI platform which is loaded with premium usage offers. The cash withdrawal limit on ATMs is Rs. 50,000.00 and purchase limit on POS terminals is Rs. 1,00,000.00. The card carries a personal accident insurance coverage of Rs. 2.00 lacs.

Online validation of Customer details with CFT list

The United Nations periodically circulates the following two lists of individuals and entities, suspected of having terrorist links, and as approved by its security council (UNSC). Banks are required to update the lists and take them into account for implementation of Section 51A of the Unlawful Activities (Prevention) (UAPA) Act 1967. Banks should ensure that they do not have any account in the name of individuals/entities appearing in the above lists. Details of accounts resembling any of the individuals/entities in the lists should be reported to FIU–IND invariably.

To meet the above regulatory requirement, Bank has customized CBS system such that whenever branch goes for creation of new customer master, the customer name is checked against CFT database on real time basis. When the customer name is present in the CFT list a warning message is prompted to the branch user along with matched names from the CFT list. If no matching record are found then no message will be displayed and the branch user can go ahead to onboard the customer.

Offsite Monitoring – Alert Management

A new facility is provided for the alert mechanism wherein the Branches can directly access alerts online and respond the same, without sending and receiving any mails. Presently, the facility is available for 12 types of daily alerts.

Integrated e–surveillance system for ATMs

Bank is implementing centralized integrated security surveillance system to prevent ATM related physical crimes which include Intrusion detection sensors, Fire detection, Smoke/Heat Detection, Intrusion alarm, Hooter/Burglar Alarms, User Alarm activation switch, Speaker, Microphone, other sensors to raise alerts during various contingencies. Purchase order placed on the 3 vendors for all the 2500 sites for implementation of the solution. Implementation under progress.

ATM Switch migration to FSSnet Switch:

Hitherto Bank was maintaining its own ATM switch. To save on cost, Bank decided to take ATM switch service on Opex model. Accordingly Bank has successfully migrated ATM Switch Services to FSS Switch on opex model on 20.02.2016.

Online Booking of lockers:

On Banks website now option is provided to prospective customers to view the details of the vacant lockers available at different branches. The customer can then book locker based on the availability and can approach the branch for further processing of the request.

Dashboard for Top Management using SAS tools:

Bank in–house team has developed different 15 dashboards on various important parameters giving details of the performance of the Bank using SAS tools. These dashboards are being used by Top Management to take informed decisions.

Kisan Vikas Patra scheme

Govt Of India has launched Kisan Vikas Patra (KVP)2014 scheme which is available to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000. Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock–in period of 2 years and 6 months and thereafter in any block of six months on pre–determined maturity value. The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Accordingly our bank has also customized the scheme in Finacle and released to the designated 418 branches.


During the Financial Year 2015–16, Bank opened 296 Branches (including up–gradation of 4 Extension Counters) and added 1404 ATMs/BNA/CRS. With this, as on 31.03.2016, Bank had 6477 Delivery Channels consisting of 2803 Branches, 4 Extension Counters, 34 Satellite Offices and 3636 ATMs& BNA/CRs spread over 26 States and 3 Union Territories. The Bank has 45 Specialized Branches catering to the needs of the specific segments of clientele. The Bank also has two Representative (overseas) Offices at Dubai (U.A.E) (opened in May 2006) and New Jersey (U.S.A) (opened in November, 2008

.1 Presence in Minority–Dominated Districts

At the end of 31.03.2016 we are having 306 branches in Minority dominated Districts. Of the Bank's total network across the country, the percentage of Branches in minority dominated Districts stood at 11.08 % as on 31.03.2016.

9.2 Navshakti Initiatives

1. The number of Navshakti Branches crossed the land mark figure of 1000 on 18.03.2016.

2. 343 Branches were converted to Navshakti model during the current financial year, of which 133 are Rollout Branches and 210 are New Branches. As on 31.03.2016, there are 1035 Navshakti Branches, of which 400 are Rollout Branches and 635 are new branches.

3. The first Delite Banking Branch, at Road No.45, Jubilee Hills and Hyderabad was inaugurated on 15.10.2015. This is the first of its kind branch, catering to the needs of the HNI Customers.

4. 4 RLEs and 2 SMEs were opened during the current financial year. With this, the total number of RLEs and SMEs as on 31.03.2016 is 17 and 10 respectively.

5. 113 Officers under MM–III cadre were identified and inducted into the talent pool created for Succession Planning


10.1 Risk Management

The Bank has a comprehensive "Integrated Risk Management Policy" for the management of Credit risk, Market risk and Operational risk as per the guidance notes/guidelines issued by the Reserve Bank of India. Accordingly, all the risk management functions, viz., Credit Risk, Asset–Liability Management (ALM), Mid–office of the Treasury and Operational risk functions have been integrated. The "Integrated Risk Management Policy" of the Bank is being reviewed every year in tune with the regulatory guidelines.

10.1.1 Credit Risk

• Credit Risk Management Committee is responsible for implementation of the Credit policies approved by the Board and RMC.

• The Bank has a well defined 'Loan Policy' duly approved by the Board prescribing standards for presentation of credit proposals, financial covenants, rating standards and benchmarks, delegation of credit approving powers, prudential limits on large credit exposures, asset concentrations, standards for loan collateral, portfolio management, loan review mechanism, risk concentrations, risk monitoring and evaluation, pricing of loans, provisioning, regulatory/legal compliance, etc.

• Bank also is having in place the Credit Risk Management Policy, Credit Risk Mitigation & Collateral Management Policy, Credit Risk Rating Policy, Loan Recovery and NPA Management Policy.

• The Bank has in place comprehensive risk rating system for various categories of exposures. Bank has established a Rating cell for assigning internal ratings for all exposures of Rs 5 Crore and above. The Rating cell vets the internal rating given by the branch / Zonal office and assigns final rating.

• The Rating cell ensures comprehensive rating coverage, integrity of rating process and proper data maintenance.

• The Bank utilizes industry reports from CRISIL and the industry risk score service from CRISIL Research.

10.1.2 Market Risk

Market risk implies possibility of loss arising out of adverse movements of market determined rates and prices. The objective of market risk management is to avoid excessive exposure of Bank's earnings and equity to such losses and to reduce Bank's exposure to the volatility inherent in financial instruments such as securities, foreign exchange contracts, equity and derivative instruments, as well as balance sheet or structural positions. The Bank has in place a well–defined 'Market Risk Management Policy' and an organizational structure for market risk management functions. The Bank manages market risk through 'Asset–Liability Management (ALM) policy and 'Investments/Forex policy'.

A high level Executive Committee viz. Asset–liability Committee (ALCO) oversees the ALM in the Bank and deliberates on liquidity and interest rate scenario in the market and decides upon the pricing of various products. ALCO regularly monitors the identification, measurement, monitoring and mitigation of market risk in liquidity, interest rates, equity and forex areas.

The 'liquidity risk' is measured and managed through 'gap analysis' for maturity mismatches based on residual maturity. For assets and liabilities, which are of non–maturity nature. Bank is conducting behavioural studies and factoring the observations in the gap analysis. The behavioural study findings are subjected to back–testing and are validated regularly. Prudential limits are fixed for net gaps and also for cumulative gap up to one year and these limits are measured and monitored regularly. Liquidity profile of the Bank is also measured regularly through various liquidity ratios and monitoring of the same is done with the help of prudential limits fixed thereon.

The 'interest rate risk' is monitored on a regular basis through 'Maturity gap analysis' and 'Duration gap analysis'. Tolerance limits have been fixed for impact on Net Interest Income (NII) due to adverse changes in interest rates. To measure the impact of interest rate changes on Bank's equity, duration gap analysis is done and prudential limit is set for modified duration of equity. Modified duration of equity is within the prudential limits set for this purpose. VaR and duration analysis are used for measuring market risk including treasury operations. The Interest Rate Risk in Banking Book (IRRBB) is also being assessed on a monthly basis.

Other market related risks to which any bank is exposed are foreign exchange risk on foreign currency positions, liquidity or funding risk and price risk on trading portfolios. The Bank has clearly articulated policies to control and monitor its treasury functions. These policies comprise management practices, procedures, prudential risk limits, review mechanisms and reporting systems. These policies are revised regularly at fixed intervals in line with the changes in financial and market conditions.

10.1.3 Operational Risk:

Management of Operational Risk is a part of the 'Integrated Risk Management Policy' and the Bank has a focused attention for management of the Operational Risk, in the light of the Reserve Bank of India guidelines. Operational Risk Management Cell is responsible for coordinating all the operational risk management activities of the bank and these include building an understanding of the risk profile, implementing tools related to operational risk management and working towards the goals of improved controls and lower risk. Operational Risk Management Committee [ORMC] ensures implementation and compliance of the Operational Risk policies and reports to the Board/Risk Management Committee [RMC].

The Bank has been computing capital charge for Operational risk by adopting 'Basic Indicator Approach' (BIA) as stipulated by the RBI.

10.1.4 Approaches followed for computation of Capital to Risk Weighted Assets Ratio (CRAR)

As per RBI guidelines, all Commercial banks in India shall follow the Standardised Approach for Credit risk, Standardized Duration Approach for Market risk and Basic Indicator Approach for Operational risk under the 'New Capital Adequacy Framework".

Credit Risk: Bank at present is following the Standardized Approach for estimation of capital requirements for Credit Risk which also includes the HTM portfolio of Investments. Bank is gearing itself to move over to Advanced approaches for Credit risk. In this regard, Bank has developed a Credit Risk Rating Model (CRRM) with the consultancy assistance of National Institute of Bank Management (NIBM), Pune. This model is further strengthened internally by making it a WAN (Wide Area Network) based CRRM model so that it is accessible from any of the locations of the bank. This model is capable of providing transition matrices and default probabilities (Probability of default) and would help the Bank in moving over to the Advanced Approaches in future.

Market Risk: Bank is using the Standardized Duration method for computing capital charge for Market risk (investments in HFT and AFS categories) as per RBI guidelines.

Operational Risk: Bank is providing capital for Operational risk as per the Basic Indicator Approach (BIA).

10.1.5 Preparation for moving over to Advanced Approaches

Bank is in the process of migrating to Advanced Approaches through implementation of an Integrated Risk Management Solution

10.1.6 Bank's compliance to RBI guidelines on Basel requirements:

Pillar – I (Minimum Capital requirements)

RBI has introduced in its Basel III guidelines the following enhanced capital requirements and has also prescribed transitional arrangements to conform to these requirements in a phased manner by March 31, 2019.

The Bank is calculating its Capital Adequacy in accordance with Basel II & Basel III guidelines. The Bank's Capital Adequacy at present is in conformity with the transitional arrangements for Basel III as prescribed by RBI. However, to meet the growing business requirements, the Bank may have to supplement its Capital funds, especially by increasing Common equity in future

Pillar – II (Supervisory Review & Evaluation Process)

In compliance with the Pillar—II guidelines of the RBI under Basel III framework, the Bank has formulated a Policy of Internal Capital Adequacy Assessment Process (ICAAP) to assess internal capital in relation to various risks that it is exposed to. Stress Testing and scenario analysis are used to assess the financial and management capability of the Bank to continue to operate effectively under exceptional but plausible conditions. The bank is calculating the Concentration risk on a quarterly basis to assess the portfolio level risks based on sectoral, geographical and borrower wise concentration. Bank is using statistical parameters like Herfindahl–Hirshman Index (HHI), Gini Coefficient, and Rosenbluth Index for determining the Credit Concentration Risk. The Bank has a Board approved Stress Testing Policy describing the various techniques used to gauge its potential vulnerability and also its capacity to sustain such vulnerability.

Pillar – III (Market Discipline)

The Bank has a Disclosure Policy as per the disclosure requirements contained in the circular issued by the Reserve Bank of India on the implementation of the Basel III Capital Regulations. The guidelines therein are adhered to and compliance is reported to the Competent Authorities. Pillar–III (Market discipline) of Basel III, aims to encourage Market discipline by developing a set of disclosure requirements which allows market participants to assess key pieces of information on the scope of application, capital, risk exposures, risk assessment processes and hence, the capital adequacy of the Bank. The Pillar—III Disclosures are published on a quarterly and half yearly basis on the Bank's website plus a year–end disclosure as on March of every year. The Pillar–III year–end disclosures are also published in the Bank's Annual Report apart from being available on the Bank's website.

10.1.7 In addition to the above, RBI has introduced several other measures of leverage and liquidity standards viz.

• A minimum Leverage Ratio of 4.5% to curb the excessive leverage of a bank's balance sheet and

• Liquidity standards by way of two ratios viz. Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).

The LCR requires a bank to hold sufficient high–quality liquid assets to cover its total stressed net cash outflows over 30 days. The NSFR requires a bank to hold sufficient amount of stable funds to meet the requirement of stable funding over a one–year period of extended stress.

The Bank is regularly calculating and monitoring the Liquidity ratios taking as reference the RBI guidelines issued for LCR and draft guidelines issued for NSFR. The Bank is also calculating and monitoring the Leverage ratio on a quarterly basis.

10.2 Management of Asset Quality

Gross NPAs of the Bank stood at Rs. 11,444 Crore as on 31.03.2016. Gross NPAs as a percentage to Gross Advances stood at 8.39% while Net NPAs as a percentage to Net Advances stood at 4.61%. The Provision Coverage of NPAs as on 31.03.2016 was 56.89%.

Total reduction in NPA accounts amounted to Rs.1765 Crore.

10.2.1 Restructuring mechanism

During FY 2015–16, 7 accounts with outstanding amount of Rs.1371.97 Cr were restructured in terms of the restructuring packages. The total balances in restructured accounts as at the end of March 2016 stood at Rs.11393.09 Crore in 167 accounts.

10.2.2 Lending Practices

The Bank had framed well defined Loan Policy Guidelines with the approval of the Board. These guidelines are reviewed by the Board at periodical intervals based on Reserve Bank of India guidelines, Annual Policy Statement of Reserve Bank of India, competitive environment prevailing among the banks, for accelerated credit growth envisaged in certain business segments, marketing & development of new products and taking into account the feedback received from the field level functionaries, credit departments at Head Office.

Credit Committees have been constituted in the Bank at Head Office, Circle Office and Zonal Office levels for exercising sanctions of credit proposals and suitable sanctioning powers have been delegated to these committees in terms of directions of Ministry of Finance. Further, based on feedback received from field level functionaries, the delegated powers of various sanctioning authorities are reviewed and revised to reduce turnaround time in the sanction of credit proposals. The loan review mechanism is further strengthened in the Bank ensuring review of sanctions made by all functionaries by the next higher committees / competent authorities as the case may be.

The guidelines of the Bank on Loan Policy, Delegation of Powers and Credit Monitoring Policy have been reviewed by the Bank and a comprehensive booklet is released on 28.11.2012. Subsequent changes have been communicated through circulars from time to time. The Department is in the process of releasing a comprehensive booklet with updated information as on 31.03.2016.

10.2.3 Techno Economic Viability (TEV) Cell

The bank has a Techno Economic Viability (TEV) Cell which is independent of Credit Processing & Sanctioning Departments. The cell undertakes preparation of Project Information Memorandum (PIM), conducting Techno –Economic Viability (TEV) study and Debt Arrangement (Loan Syndication) for corporate clients. The cell has earned Fee based income of Rs. 68.33 Lakhs during the Financial Year 2015–16.

10.2.4 Credit Monitoring Cell

Credit Monitoring Cell of the Bank is reconstituted for both Large and Mid Corporate Departments separately and continues to monitor the accounts falling under the powers of Head Office. This Monitoring Cell is exclusive and separate from the Credit monitoring done by Credit Monitoring & Review Department (CMRD) at Head Office.

10.3 Management Information System

Bank has developed a robust Management Information System which captures data essential for vital functions such as risk management and planning and which serves as an effective tool for the Top Management in decision making. This has facilitated quick decision making. The Bank is in a position to analyse performance in major parameters even on a day to day basis using the information system available. Leveraging on the CBS platform of the Bank, the MIS has facilitated speedy decision making and its implementation.

10.4 Inspection & Audit

As per the direction of the Department of Financial Services, Ministry of Finance, Government of India and as approved by our Bank's Board, we have modified the inspection methodology of our bank and migrated to system driven Risk Based Internal Audit w.e.f 01.04.2014 using a software that has been developed in–house using the expertise of our Development Team in the Department of Information Technology of our Bank.

Under the new RBIA methodology we have completed the annual inspection of 1758 branches successfully during 2015–16.

10.5 Compliance Policy

The Bank has in place a comprehensive Compliance Policy. An executive of the Bank in the rank of Deputy General Manager has been appointed as the 'Chief Compliance Officer'. As per the Policy adopted by the Bank, suitable organizational structure has been laid down defining the roles and responsibilities for Compliance Officers of various departments at Head Office, Zonal Offices and Branches. Compliance of statutory and regulatory guidelines is the scope of operation of the compliance function in the Bank. Suitable reporting system is put in place to ensure effective implementation of Compliance Policy in the bank.

10.6 Legal

Legal Action under SARFAESI Act, 2002

SARFAESI Act, 2002 came to force on 21.06.2002. Bank is utilizing this Act as an effective tool for recovery of NPA loans. By invoking SARFAESI Act, 1211 secured assets (cumulative from 2002) were sold by the Bank up to 31.03.2016 involving Real Balance of Rs.1981.20 crores. During the period from 01.04.2015 to 31.03.2016 the Bank sold 140 secured assets and recovered an amount of Rs 113.33 crores. Total recovery affected by the Bank through invocation of SARFAESI Act in the financial year has been Rs.574.92 crores

Adherence to Right to Information Act

RTI Act, 2005 came into force with effect from 18.10.2005 and the Act was implemented in our Bank from the date of inception as the Bank is a Public Authority under Sec. 2(h) of the Act.

All Zonal Managers are designated as Central Public Information Officers (CPIOs) for all offices in the Zone to deal with request and render reasonable assistance/information. General Manager at Head Office is the Appellate Authority under the Act.

During the year 2015–16, Bank received 1070 Requests and 118 Appeals under RTI Act. All the requests and appeals were responded and replied in time.

10.7 Customer Service

• Customer Meet was conducted on 24.11.2015 at all the branches on the eve of Founder's Birthday.

• As a part of Customer Centric Initiatives we have started holding Segment Specific Customer Meets apart from the general Customer Meets are held.

10.8 Human Resources Management

During 2015–16, various guidelines received from the Government of India on H.R. issues were incorporated in the bank's HR Policy.

In order to meet the demands of expansion, the man power gap arisen due to retirements and also to bridge the skill gaps in areas like Credit, Information Technology, Forex, Risk Management, Treasury etc., bank inducted 169 Specialist Officers in the fields of Rural Development, HR, Official Language, Financial Analysts, IT and Law, 136 General Officers and 807 Clerks during the year. Bank also ensured career progression of employees by considering 1343 promotions in all grades put together as per the manpower & recruitment plan for the year.

MoU with Manipal Academy

As done in previous years, our Bank has entered into an MOU with Manipal University during the year for hiring Job–ready Officers and selected 150 candidates for undergoing one year PGDBF course. On completion of 9 months course at University, the students shall be put on 3 months internship in our Branches. Upon completion of the course, they will be inducted into the bank.

Industrial Relations

Industrial Relations are cordial in the Bank. Quarterly meetings were conducted at Corporate Office with the representatives of the recognized Officers' Federation and the Award Employees' Union. Besides this, periodical meetings were also held at Zonal level to sort out the local issues to better the working conditions as well as customer service.


Bank has an Apex College with state–of–the art training facilities located in Financial District in Hyderabad. To improve the core capabilities of employees, various training programmes on Credit, Risk Management, Forex, Leadership Development, Product Awareness and Soft skills development were conducted besides induction and Refresher programmes for the newly recruited employees.

In addition to the above, one day capsule workshops on specialized areas like Credit Management, Recovery Management, Awareness on E–products were conducted at zonal level to improve operational efficiency of the field staff. During the year 2015–16, 428 in–house training programmes / workshops were conducted and trained 9459 employees. During the year under review 196 Officers were sent for external trainings organized by reputed institutes like NIBM, CAB, ASCI etc.


E–learning is an extension to the class–room learning and enables the bank to offer on–line training in a quick, easy, convenient and cost effective manner from anywhere and everywhere. In order to develop a learning culture among the employees, Bank has come out with E–learning project as a part its HR transformation initiative. An exclusive intranet portal titled "Navshakthi e–Gyan" is developed in association with the knowledge partner IDRBT for developing e–courses. 100% of the Officers and Clerical employees have registered themselves with the e–portal and 73 e–courses are so far uploaded for the utility by the registered users.

SC/ST/OBC Profile

Our Bank has been implementing reservation policy for SCs & STs as per Govt. of India guidelines. The representation of SCs and STs is 3920 and 1519 respectively in total work force of 20016 working in the Bank as on 31st March 2016. Out of total 10354 officers, 1830 belong to SC category and 847 belong ST category. Bank has nominated a General Manager as Chief Liaison Officer for SCs & STs at Head Office and all Zonal Managers as Liaison Officers at Zonal Level to address the grievances if any, of SC & ST employees. Bank has been regularly conducting quarterly joint meetings with the representatives of SC & ST Employees Welfare Association of Andhra Bank.

Our Bank has been implementing reservation policy for Other Backward Classes (OBCs) with effect from 08.09.1993 as per Govt. of India guidelines. The representation of OBCs is 4867 in the total work force of 20016 working in the Bank as on 31st March, 2016. Bank has nominated a General Manager as Chief Liaison Officer for OBCs at Head Office and all second line executives at Zonal Office as Liaison Officers at Zonal level to address the grievances if any, of OBC employees. Bank has been regularly conducting Half yearly joint meetings with the representatives of All Andhra Bank BC Employees Welfare Association.

Differently Abled Persons

Our Bank is providing 3% of total vacancies arising in Officer, Clerical and Subordinate staff cadre in a year. The 3% posts are distributed amongst 3 categories of Persons who are differently abled i.e., Blindness or low vision (B/LV) – 1%; Hearing Impairment (HI) – 1%; Loco Motor disability or cerebral palsy (LM) – 1%. The representation of Persons with Disabilities is 423 (2.11%) in total workforce of 20016 as on 31st March, 2016


• Hindi Quarterly Progress Report Submission has been made On–line throughout the Country which facilitates prompt and error–free submission of Hindi Quarterly Progress Reports.

• On–Line Quarterly Memory Test is conducted for all Zonal Offices and branches where staff strength is 10 or more. This is another novel and innovative on–line test introduced by our Bank.

• An exclusive 4–page brochure was printed regarding OL Implementation at Zonal and branch level. The same was sent to all ZOs and branches.

• Rajbhasha Link in AB Staff Portal has been revamped. Besides 'Rajbhasha Mission', Banking Terminology, Administrative Phraseology, Rajbhasha Margdarshika, various formats, Important Circulars, other related information, Hindi House Magazine, Monthly Hindi e–bulletin and Hindi Workshop material has also been kept in our Portal.

• Official Language Implementation Committee of HO is held regularly every quarter.

• Learn a Hindi Word Everyday Scheme and 'Thought for the Week' was prepared and sent to all Branches and Zones through a circular for implementation.

• Head Office and all Zones successfully celebrated Hindi Fortnight, during which five Hindi competitions were also conducted. All branches celebrated Hindi Day. An All India Hindi Essay competition was also conducted during this occasion. Two Hindi Posters were also prepared and sent to all branches.

• Website of our Bank is in Trilingual (Hindi, Telegu & English) and is in 'Unicode'. It is updated on weekly basis.

• On–Line OL test was successfully conducted throughout the Country in which more than 4700 employees participated.

• A Pocket Nirdeshika regarding Use of Hindi was printed and sent to all Zones and branches for implementation.

• Quarterly Issue of "Rajbhasha Sarita" Quarterly Hindi Magazine was printed in every quarter in time. Photography competition is also held regularly for this magazine. Rajbhasha Vani" – Hindi monthly e–bulletin is being regularly issued by Head Office and 36 Zones.

• Hindi word is displayed daily on AB Staff Portal. It is also being sent to all Zones and branches by e–mail.Hindi Workshop was conducted by Head Office and all Zones in all quarters

• "Rajbhasha Guide" and "Margdarshika" was prepared and sent to all Zones. The booklets contain guidelines about OL Implementation and Help Literature respectively

* Noting Table guide was printed and supplied to all Offices and branches.

* All employees are provided guidance to work in Hindi in Computers by providing 'Desk Training' during OL Inspection.

* Dy. Director, Implementation appreciated Innovative steps of our Bank regarding OL Implementation.

* Ministry of Finance inspected our Head Office and appreciated Use of Hindi and innovative steps of our Bank in OL Implementation.

* Use of Hindi in our Tirupati, Bangalore, N. Delhi, Varanasi, Kochi, Warangal & Ahmedabad branch was appreciated and awarded Special Prize by Ministry of Home Affairs.

* Our Bank won total 38 prizes in various Hindi Competitions conducted under the aegis of TOLIC.

* Head Office was awarded First Prize in Use of Hindi in Hyderabad by Ministry of Home Affairs.


* During the Financial Year 2015–16, General Manager & Chief Vigilance Officer addressed the Zonal Managers conference and emphasized the importance of preventive measures. He explained about common lapses observed by the vigilance department. He visited some of the Branches and Zonal Offices and guided the staff on implementation of various preventive vigilance measures and emphasized on adherence to System Procedure and Guidelines (SPG) to ably arrest frauds and vigilance cases.

* In the current financial year, 11,885 number of employees were enlightened on Preventive Vigilance aspects in 485 different training programs/sessions held at Apex College, Hyderabad.

* Vigilance Department implemented 29 major systemic improvements which resulted in minimizing the occurrence of frauds.

* Department has achieved the target of reviewing Assets & Liabilities statement of officers staff as per Central Vigilance Commission Guidelines.

* Department has investigated into and disposed off 78 complaints received during the year.

* During the year 59 vigilance cases have been registered out of which 20 cases have been disposed off.

* Preventive Vigilance Inspection has been conducted in 2243 branches to ensure implementation of extant guidelines. Reports were reviewed by the department and necessary instructions have been issued to the branches for compliance.

* Vigilance Department observed "Vigilance Awareness Week" from October 26. 2015 to October 31, 2015. As part of the Vigilance Awareness Week, one Independent Director, a veteran banker, Shri. Krishna Kumar addressed the officers at our Head Office on 29.10.2015 on 'Preventive Vigilance as a tool of Good Governance', the central theme of Vigilance Awareness Week. Competitions in elocution, essay writing were conducted at head office and at various schools and colleges in different cities by respective zonal offices.


Andhra Bank is the Convener Bank for State Level Bankers' Committee, Andhra Pradesh since 1984. Consequent to re­organization of AP into Telangana & Residual Andhra Pradesh w.e.f 2nd June, 2014, responsibility of Convenership of SLBC of residual AP continued to be with Andhra Bank.

So far 193 SLBC meetings have been organized including 10 SLBC Meetings in the reorganized state of Andhra Pradesh. The State Credit Plan for 2015–16 was launched by the Hon'ble Chief Minister of Andhra Pradesh on 29.06.2015. Andhra Bank is having Lead Bank responsibilities in six districts, viz. Srikakulam, East Godavari, West Godavari, Guntur in Andhra Pradesh and Ganjam, Gajapathi districts in Odisha State. Bank is discharging all responsibilities in implementation of Lead Bank Scheme.

Financial Literacy Centres (FLCs):

SLBC has identified the uncovered blocks and were allotted among banks for opening of FLCs. The Financial Literacy material finalized by the Mission office was translated into vernacular language by SLBC and sent to banks.

Spread of Financial Literacy in Government approved Industrial Training Institutes (ITIs):

The Department of Financial Services, MoF, GoI have communicated their decision to launch a financial literacy drive to educate students. SLBC has mapped 843 skilling centres with FLCs & Bank branches existing in the state of Andhra Pradesh.

Website: An exclusive website is set up for SLBC of Andhra Pradesh with URL for the information of all the stake holders and general public. The website is being updated at regular intervals with the latest data and information.


Pradhan Mantri Jan–Dhan Yojana (PMJDY) was formally launched on 28th August; 2014.The Yojana envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension

Bank has successfully implemented PMJDY and as on 31.03.2016, 21.78 Lakhs accounts have been opened as against 19.46 lakhs during previous year.

Out of 21.78 lakh accounts, 14.61 Lakhs accounts are in rural areas and 7.16 Lakhs in urban areas.

Total deposits of Rs. 212.91 Crore have been mobilized with average balance of Rs.977.51 as against Rs. 506.00 during previous year

Zero balance accounts stood at 4.54 lakhs comprising of 20.84% whose reduction is from 58.18%.

19.15 Lakh RuPay Debit cards have been issued against  

15.96 Lakhs during 31.03.2015. Aadhaar seeding has been done in 12.94 Lakh accounts

Over Draft Facility under PMJDY:

• The basic concept is to include the last mile to the financial channel by extending the overdraft to the needy.

• 1,67,578 PMJDY accounts are eligible for overdraft facility and 46,844 customers are sanctioned overdraft facility and 13,547 customers availed over draft to the extent of Rs. 176.28 lacs.

Social Security Schemes (SSS):

A massive 80% of the country's population is still outside the insurance coverage while the government estimated that merely 11% of the working population is under pension. Inorder to bring the people under insurance coverage, Honourable Prime Minister has launched two insurance products and one pension product are targeted especially to the unorganized sector and economically weaker section population were launched viz., Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pension Scheme, Atal Pension Yojana (APY) on 09.05.2015 at Kolkata.

Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJBY):

• PMJBY offers Rs 2 lakh life insurance cover at a premium of Rs 330 per annum. Bank account holders in the age 18 to 50 years are eligible to avail this facility. The life risk cover will get terminated after 55 years.

Pradhan Mantri Suraksha Bima Yojana (PMSBY):

• PMSBY offers one year accidental death cum disability coverage for people who fall in the age group of 18–70 years of Rs 2 lakh at Rs 12 premium. The insured will get Rs 1 lakh in case of partial permanent disability. Multiple bank account holders are eligible to join the schemes through any one of the savings accounts.

Atal Pension Yojana (APY):

• Atal Pension Yojana is for the people in the unorganized sector who are outside a formal pension so far. The pension scheme would allow subscribers of age 18 to 40. The government has promised to co–contribute 50% of total contribution or Rs 1,000 per annum whichever is lower, for the first five years. Subscribers without any social security and who don't pay income tax will get this added benefit.  

Capacity Building of Bank Mitras:

• As directed by IBA, all Corporate Business Correspondents have advised their Bank Mitras to undergo training at RSETTIs and appear for IIBF certificate examination

• Bank is having 1360 active Bank Mitras pertaining to various Corporate Business Correspondents who are regularly taking up transactions in the field.

• Of 1360 active Bank Mitras, 940 Bank Mitras have appeared for IIBF Certification exam and out of which 650 Bank Mitras have received certificate from IIBF.

• Bank has organized online examination for these 710 Bank Mitras on 22nd and 23rd December 2015 and for this exam 391 Bank Mitras has appeared and of which 375 Bank Mitras have qualified the exam.

• Bank have conducted offline examination on 29th December 2015 and for this 335 Bank Mitras have appeared and all have qualified.

• By this bank has completed 100% certification of active Bank Mitras.

Technological Developments in Department:

• Our bank is the first bank to provide the facility of availing Over Draft facility from all our ATMs and also through SMS facility.

• Bank has provided the facility of enrolling SSS schemes in PoS machines available at Bank Mitras.

• Aadhaar seeding has been enabled in KIOSK technology.

• All Bank Mitra logins are enabled with Aadhaar Based logins.

• Enabled host to host facility for APBS. (Aadhaar Payment Bridge System)


The Bank has one Subsidiary, namely, Andhra Bank Financial Services Limited (ABFSL), which is wholly–owned by the Bank. The Company has earned a profit of Rs. 153.23 Lacs before Income Tax and a Net Profit of Rs.103.53 Lacs after Income tax during the year ending 31.3.2016, with this the negative net worth of the company has been brought down from Rs. 915.99 Lacs to Rs. 812.47 Lacs as on 31.03.2016.

Bank has one sponsored Regional Rural Bank namely Chaitanya Godavari Grameena Bank located in Guntur (Andhra Pradesh), covering the districts Guntur, East Godavari and West Godavari. As on 31.03.2016, the total business stood at Rs.5362.13 Crore


During the financial year 2015–16 the bank has participated / hosted the following parliamentary committees:

• The parliamentary Committee on Standing committee on social Justice and Empowerment headed by Shri Ramesh Bais, Hon'ble Chairman had undertaken a study tour programme on 11th & 12th June,2015 at Hyderabad. The committee reviewed reservation for and employment of SC/ST/OBC/Differently abled persons and Minorities at various levels of posts in Andhra Bank as on 31.03.2015. The committee consists of Hon'ble MPs of both Loksabha and Rajya sabha and our bank was the nodal agency for organization of study tour programme at Hyderabad.

• Bank also took part in Parliamentary committee Meetings on Human Resource Development, National Commission for Safai Karmacharis on the issue of safai karmacharis/ Group–D employees and complied to their directions.


High priority was accorded to up–grade security arrangements at branches, currency chests and ATMs. Installation of Integrated burglar alarm system (IBAS)at branches is in progress. Embedment of safes in non–strong room branches has been commenced and is in final stage of completion. Establishment of e–surveillance of ATMs has commenced. Efforts are on to enhance security measures and minimize crime rate against our Bank.


The NRI Cell was set up with a view to serve as an effective channel of communication between the Bank and its NRI Clientele thereby increasing NRE Deposits. The Cell supports and guides Representative Offices in Dubai & USA thereby ensuring betterment in Customer Service.

Besides marketing Bank products, NRI Cell provides useful information related to Banking & Foreign Exchange to NRIs through NRI Bulletin (AB Connect) every month. At present nearly 30260 NRI Customers (both existing and prospective) are being connected and accessing the information provided in the NRI Bulletin (AB Connect).

Total NRI business of the Bank increased from Rs.2082 Crore as on 31.03.2015 to Rs.2,505 Crore as on 31.03.2016, i.e. a growth rate of 20.32%. The total Deposits under NRE segment comprising of SBNRE, TD NRE and FCNR (B) Deposits increased from Rs.1,839 Crore as on 31.03.2015 to Rs.2240 Crore as on 31.03.2016 registering an annual growth rate of 21.81%.


The department has been instrumental in designing the visibility concepts for the Branch Transformation under the Navshakti Project. The brand transformation at these branches have been much appreciated by the Customers and the Peer Banks and branded 1000th Navshakti branch which was opened in March, 2016.

The Department has conducted and event Managed Foundation Day Celebrations from November 23rd to November 28th 2015. During this Foundation Day Week multiple activities like health camps, blood donation, tree plantation and CSR activities were conducted at Head Office, Circle Office and at Zonal Offices PAN India. As part of these celebrations the Bank has conducted "Dhanyawaad" in all India Customer Meet on a single day to meet and greet the customers. An exclusive program was conducted at Machilipatnam, the birth place of our Founder which was attended by Central Vigilance Commissioner and participated by a large section of customers and well wishers.


The Bank has spent an amount of Rs. 128.48 lakhs for multiple CSR activities and gained substantial mileage among Organizations / Institutions and Governments and the brand image of the Bank also has enhanced. The donation budget has been distributed across the country with an objective of spreading CSR activities PAN India.

Activities supported by the Bank during the last year included Skill development, donation of ambulance/School bus/ battery operated cars, installation of water pumps, up gradation of medical facilities, construction of old age homes amongst others.


The Bank maintains its website in three languages, viz., English, Hindi and Telugu for providing information about the Bank, its services and products offered. This website is facilitating visitors to interact with Bank in the form of inquiry, feedback, grievance, thereby paving the way for availing its services. The interest rates on various products offered by the Bank are being updated on continuous basis. Information relating to Online services like Internet Banking, utility payments, Tax payment and other online services are made available on the website. The Bank has made its WCAG (Web Content Accessibility Guidelines) website accessible to 'visually impaired persons', as per Government of India guidelines.

The Bank has put new online module for displaying Inoperative accounts as per RBI guidelines and is being updated monthly.

During the year 2015–16, the bank has revamped the website to improve the look and feel and to improve the connect with customers.

The Bank being the Convener of State Level Bankers' Committee, Andhra Pradesh, maintains separate website  This website communicates all the proceedings of SLBC Meetings, State Government directives, instructions to Bankers and public.

The Bank follows meticulously CERT–In (Indian Computer Emergency Response Team) guidelines issued from time to time in maintaining Bank's Website securely.


• Bank Stood first among all PSUs under percentage wise achievement of target under APY Phase–I and Phase –II and received accolades from Ministry of Finance Government of India

• Our Bank received "Award of Excellence" for empowering MSMEs by Federation of Industry Trade and Services (FITS).

• Bank received best performance award from PFRDA on 04.02.2016 among all public sector banks.

• Bank received IDRBT Banking Technology Excellence Award for the year 2014–15 for 'Use of Technology in Financial Inclusion' among Medium sized Banks .

• Citation presented by CNBC TV18 for Outstanding Contribution made by Bank in implementation of Financial Inclusion.

• Bank has received 'Award of Excellence' in a mega function "RSETI DIWAS 2015 in recognition of exceptional contribution to RSETI movement in the country for the year 2013–14 by MoRD, Govt. of India

• Bank received award from M/s. Infosys Technology under the category of best bank for implementation of e–KYC


The following changes took place in the Composition of the Board during the FY 2015–16:

• Shri C.VR. Rajendran, Chairman & Managing Director retired on superannuation on 30.04.2015.

• Shri S.K. Kalra, Executive Director was entrusted with Additional Charge of Managing Director & CEO w.e.f 15.05.2015 to 01.11.2015

• Shri Suresh N. Patel joined the Board as Managing Director & CEO on 02.11.2015.


The Board of Directors hereby states that,

• The applicable accounting standards have been followed in the preparation of the annual accounts and proper explanations have been furnished, relating to material departures.

• Accounting policies have been selected and applied consistently, reasonable and prudent judgments and estimates have been made so as to give a true and fair view of the state of affairs of the Bank as at 31.03.2016 and of the profit and loss of the Bank for the financial year ended on 31.03.2016.

• Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the relevant regulatory provisions for safeguarding the  assets of the Bank and for preventing and detecting fraud and other irregularities.

• The annual accounts have been prepared on a going concern basis.

• Internal Financial controls to be followed by the Bank have been laid down and such internal financial controls are adequate and are operating effectively.

• Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.


Andhra Bank is grateful to the Government of India, RBI, SEBI and other authorities/agencies, Financial Institutions and Correspondent Banks for their valuable support and guidance. The Directors also express their deep sense of appreciation to all the staff members of the Bank for their dedicated service, outstanding professionalism and commitment towards Bank's vision for a sustainable growth. Finally, the Directors wish to sincerely thank all the customers, shareholders and other stakeholders for their valuable support.

For and on behalf of the Board,

(Suresh N Patel)

Managing Director & CEO

Place : Hyderabad

Date : 30.05.2016


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