Govt infuses Rs 1,172 crore into Andhra Bank

Govt infuses Rs 1,172 crore into Andhra Bank

The capital infusion is aimed at shoring up equity base of the bank to enhance lending to productive sectors of the economy.

The shareholders of the bank had earlier approved issuance of over 7.45 crore shares at a price of Rs 157.28 a share on preferential basis.

"The government has infused capital aggregating to Rs 1,172.99 crore towards issuance and allotment of equity shares on preferential shares," Andhra Bank said in a filing to the Bombay Stock Exchange.

The capital infusion would help enhance lending capacity of the state-owned banks to meet the credit requirement of the economy in order to maintain and accelerate the economic growth momentum.