India was under the rule of the British Empire as a colonial country and was liberated as a

democratic Republic in 1947. Banking in India, started under the British Rule from 1786. The
banking industry suffered a lot till the beginning of the 20th century and only private individuals
and communities were interested in starting banking operations to serve the people within
territorial boundaries. The Reserve Bank of India was nationalized in the post Independence
period and was empowered to control the banking operations with a view to boost Indian
economy. In the later part of 20th Century, there was no looking back and India is emerging as a
super power in all the strides including banking operations.

With this background, it would be worthwhile to analyze the foundation and growth of Andhra
Bank. Dr. Bogaraju Pattabhi Sitaramayya, an eminent personality in the social, economical and
political fields of pre-Independent India founded Andhra Bank in November 1923 and this bank
commenced its operations on 28th November 1923. The then paid up capital of this private bank
was Rs.1.00 lakh and the authorized capital was Rs.10.00 lakhs.

Surviving the turbulent periods after the Second World War, when many banking enterprises
closed their business in India, Andhra Bank sustained its financial activities and marched
towards progress with the support of its customers. In 1949, when Reserve Bank of India took
the regulation and control of all banks in India, Andhra Bank was also included. In 1956,
linguistic division of States was promulgated and Andhra Pradesh with its headquarters at
Hyderabad, which is also the headquarters of Andhra Bank, was established for the Telugu
speaking people of India. The services of Andhra Bank gained momentum in the new born State
of Andhra Pradesh. The nationalization of 14 important banks in India in the year 1969 saw to it
that Andhra Bank is also a nationalized bank in India today.

In the fast growing Indian economy, Andhra Bank boasts of contributing a major share towards it
and a pioneer in introducing “Credit Card” system. Today Andhra Bank has a clientele base of
1.30 crores transacting a total business of Rs.49,000 crores. Statistically, Andhra Bank operates
in 21 States, 2 Union territories and has 1,179 branches. Apart from its own 354 ATMs, Andhra
Bank has made sharing arrangements with other popular banks like SBI, HDFC, Indian Bank and
UTI Bank to extend ATM Services to its customers through more than 9,000 ATMs in the
country. The latest addition is Core Banking facility with the partnership of Hewlett-Packard
(HP) India, facilitating its customers to get access on a 24 x 7 basis to the products and services
of Andhra Bank from anywhere and anytime.

EVENTS

1980 - The Bank came into existence on 15th April, consequent to the
taking over of the undertaking of Andhra Bank, Ltd. It
is a
Government of India undertaking. The Bank transacts
general
banking business of all kinds including foreign
exchange.

- The Bank has 974 full fledged branches, 40 cluster

branches, 76
extension counters.

1983 - In March the Bank sponsored its second RRB Chaitanya Grameena
Bank in Guntur district.

1987 - The Bank sponsored its third RRB under the name Godavari
Grameena Bank. Thus by the end of 1988-89, the Bank had
three
RRBs, which together had 121 branches.

1994 - Rs 184.32 crores capital subscribed by Government.

1996 - The Bank is 76 operating in 17 States and 2 Union Territories

as
at the end of the year.

- Rs 165 crores capital subscribed by Government.

2000 - Andhra Bank Employees have gone on strike on 27th July to

28th
July.

- AndhraBank Housing Finance Ltd, a subsidiary of Andhra

Bank is planning
to start housing cafes in 15 cities throughout the
country.

- Andhra Bank will be setting up a primary dealer

subsidiary shortly.

- Andhra Bank has presented a proposal to Reserve Bank of

India seeking
to set up a subsidiary for dealing in governmet
securities.

- Mr. C.R. Sharma took charge as the new Executive Director

of Andhra Bank
on 27th September.

- Andhra Bank installed a request transmitting machine at

its Jubilee Hills Branch
in association the Stock Holding Corporation of India
Ltd., the country's largest
depository participant.

- The Karnataka Power Corporation signed a multipartite

agreement with Karnataka
Government, Infrastructure Development Finance
Corporation, Andhra Bank and
KPTCL for funding Raichur Thermal Power Station expansion
project.

2001 - Andhra Bank has tied up with a real estate portal,

indiaproperties.com, to provide
housing loans through the Internet.

- Andhra Bank has announced that it has entered into a

rupee drawing arrangement with the National Exchange
Company, WLL, Doha, Qatar, for facilitating private remittances to
India,mainly on behalf of non resident Indians (NRIs).

- The credit card division of Andhra Bank will market

cards with additional features -- such as the rollover
facility -- to its account-holders, though it will not fight shy of
issuing cards to non-account holders too

2002

-Andhra Bank has posted a growth of 38% growth in its net profit for
the third quarter of Rs.46.78cr as against Rs.33.76cr for same period
in previous year.

-Andhra Bank now mainly focussing on Retail lending and personal

banking.

-Andhra Bank has reduced their rate of interest on the housing loans
and is providing
a series of special features.

-Andhra Bank signed Memorandum of Understanding with United India

Insuranc Co.Ltd.,
and it would provide its products through various branches.

-Bank unveils Credit Card Laghu Udyami, which would offer hassle-free
loan
facility upto 2 lakh to small scale entrepreneurs.

-Shri Kasu Sudhakar has been appointed as part time Non-official

Director of Andhra Bank.

-As an expansion plan, the Bank has opened a branch in Kottayam

(Kerala).
-Andhra Bank has started its online ATM service.

-Bank started a new service called colllection of Direct taxes which

comprises
corporate tax, estate tax, gift tax etc.

-Andhra Bank opened a special counter at its Narayanagunda branch in

Hyderabad
to provide note exchange facility.

-Bank raised subordinated debt of Rs.140cr to increase its capital

adequacy ratio.

-Andhra Bank situated at Nacharam has been endorsed with Quality

Management System Certification conforming to ISO 9001:2000
standards.

-Bank has entered into an alliance with Western Union Financial

Services International,
so as to make available inbound money transfer services at all its
locations in India.

-Bank reduces interest rates on deposits under FCNR scheme for the US
dollar, UK pound
and Euro currency.

-R.Balakrishnan has been appointed as whole time Director on the

Board of
Andhra Bank.

2003

-Andhra Bank has slashed rate of interest on both domestic term

deposits and
NRE term deposits.

-Andhra Bank takes position in Top 1000 banks of the world, as its
operating
profit zoomed 77%.

-Shri Anil Kumar sood, Mr. Mallineni Rajaiah, Shri S Swaminathan and

Shri T Navneeth Rao are amongst the share holders who have been
appointed
as shareholders Directors.

-Andhra Bank has received Insurance Regulatory and Development

Authority
license to act as a corporate agent for procuring or soliciting
business of
the United India Insurance Company Ltd.

-Bank set up Trade Finance Centres at Ashoknagar,

Chikkadapalli,Nampally
and Malakpet in Hyderabad.

-Hyderabad zone of Andhra Bank has succeeded in the establishment of

exclusive Lok Adalats to deal with bank's defaulters for compromise

deals.

-Bank has donated Rs.20 lakh to the state branch of Indian Red Cross

Society.

-K.V.Subbiah, the general secretary of All India Andhra Bank

Federation (AIABOF) has been appointed as the new Director on the
Board of Andhra Bank.

-Andhra Bank, venturing on its major IT initiative plans has

sanctioned Rs.69cr

-The General Manager Mr G RamaKrishna Reddy inaugurated the first

Agri-business
centre at R.P.Road, Hyderabad.

-Bank has nominated Mr.Rakesh Singh, joint secretary, Ministry of

Finance, Department
of Revenue as the Director on the BOD of the Bank in place of
Mr.G.S.Dutt.

-Smt. Devaki MuthuKrishnan,Regional Director, RBI, Bangalore has

been appointed as the Director on the Board of the Bank.

-Bank has appointed 71 agriculture graduates from different

universities as
Rural Development Officers (RDO), to soar its rural credit.

-IDBI has inked a strategic pact with Andhra Bank to hike their
Automated Teller Machine
reach.

-Andhra Bank has achieved 100% computerization of all its branches

and all of them are
running on uniform application software.

-Bank has appointed Shri B S R Mohan Reddy as Workmen Employee

Director
on the Board of the Bank.

-Southern Railway Erode junction forms a strategic pact with Andhra

Bank to accept credit cards for booking of train tickets

-Launched the anywhere banking facility for the account holder.

-ALEAP inks pact with Andhra Bank, CGTSI

-Andhra Bank has launched two credits card brands targeting the
artisians and self-employed beneficiaries. The two cards, Artisan
Credit Card and Swarojgar Credit Card were launched on December 20th
.

2004

-Andhra Bank has informed that the Government of India, Ministry of

Finance, Department of Economic Affairs (Banking Division), New Delhi
vide Gazette Notification dated January 12, 2004 has nominated Smt.
Deepali Pant Joshi, Chief General Manager, Reserve Bank of India,
Hyderabad on the Board of the Bank in place of Smt. Devaki
Muthukrishnan, Regional Director, Reserve Bank of India, Bangalore.

-Bank awarded special prize for lending to self help group run by
women

-Andhra Bank inks pact with Corpn Bank to share ATMs

-Andhra Bank card holders get healthcare sops from New India
Assurance

-Signs MoU with National Housing Bank for the securitisation of

individual housing loan portfolio to the extent of Rs 50.36 crore,
becomes the first public sector bank (PSB) to go in for
securitisation of its housing loan portfolio

-Signs MoU with Bajaj Auto Ltd. for purchase of its two wheelers

- Eicher Tractors, a unit of Eicher Ltd, has entered into an

agreement with Andhra Bank for retail financing of tractors to the
farmers.

-ICICI Bank and Andhra Bank have announced a tie-up, that enables
sharing of their ATM networks.

-Bank has entered into an alliance with HDFC Bank for sharing its
network of automated teller machines (ATMs). On March 29, 2004

- TS Narayana-sami has taken over as chairman and managing director

of public sector Andhra Bank

-Andhra Bank has started live operations with Real Time Gross
Settlement (RTGS) system, the online funds transfer service, as a
part of the guidelines and framework of the Reserve Bank of India
(RBI)

-Andhra Bank has opened an exclusive branch for non-interest income

operations

-Andhra Bank sets up financial services centre in Hyderabad

- Andhra Bank has announced that it has joined hands with Mahindra
Tractors for financing the distribution of tractors through the bank
branches across the country

-Andhra Bank has launched a new health insurance product for its
accountholders. The scheme called `AB Arogyadan' is to meet
hospitalisation of family members of those who have any form of
account with the bank at a very affordable premium

-Andhra Bank signs agreement with Export Credit Guarantee Corpn. of

India Ltd. (ECGC) for marketing of ECGC's export credit insurance
products through the network of the bank's branches

-Andhra Bank, Indian Bank forge alliance to share their automated

teller machine (ATM) facilities

-Andhra Govt inks pact with Nabard for Bamboo cultivation

-Andhra Bank unveils co-branded credit card in association with

ICFAI

-Andhra Bank enters MoU with SBI Mutual Fund

-Andhra Bank signs MoU with TVS Motor

-SBI enters ATM tie up with Andhra Bank

-Andhra Bank signs MoU with TAM

-Andhra Bank partners with ACGA to aid women entrepreneurs

-Andhra Bank ties up with Tata Motors

-Bajaj Tempo inks pact with Andhra Bank

2005

-Launches composite credit card for farmers and two insurance schemes
for self-help groups (SHGs) and senior citizens.

- Andhra Bank ties-up with Kirtilal Kalidas & Company, a leading

jewellers to extend loans for the purchase of jewellery.

-Appoints Shri K Ramakrishnan as Chairman and Managing Director (CMD)

upto July 31, 2008

-Andhra Bank join hands with NCMSL for loans against farm produce

- Andhra Bank receives registration as Depository Participant (DP) of

CDSL

-Andhra Bank has filed for its follow-on public offer for 8.5 crore
new equity shares to raise nearly Rs 800 crore to shore up its
capital.

2006

-Andhra Bank sets up new branch at Kalina

-Andhra Bank sets up overseas office at Karama in Dubai

-Andhra Bank joins hand with Consortium of Institutions for Higher

Learning for study loans

- Andhra Bank has informed that the Government of India, Ministry of

Finance, Department of Economic Affairs (Banking Division), New
Delhi, vide Gazette Notification dated October 20, 2006, in exercise
of the powers conferred by clause (b) sub-section (3) of Section 9 of
the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970/1980, read with sub-clause (1) of clause 3 of the Nationalized
Banks (Management and Miscellaneous Provisions) Scheme, 1970/1980,
has nominated Shri G B Singh, (Deputy Secretary (BOI), Ministry, of
Finance, Banking Division, New Delhi), as Director of the Bank on the
Board of Directors of the Bank ,in place of Shri Rakesh Singh, (Joint
Secretary(IF), Ministry of Finance, Banking Division, New Delhi)
existing Director of the Bank with immediate effect and until further
orders.

-Andhra Bank sets up 21st branch in Kerala at Vyttila in Kochi on

December 15.

2007

-Andhra Bank rolls out Bima Utsav

-Andhra Bank to set up biometric ATMs

-Andhra Bank all set to introduce mobile ATM in Vizag

2008

- Andhra Bank has appointed Shri. Rajib Sekhar Sahoo, as part-time

non-official Director on the Board of Andhra Bank for a period of
three years with effect from the date of his appointment i.e., July
14, 2008, until further orders.

-Andhra Bank signs MoU with Crisil

-Andhra Bank rolls out 'Bima Utsav II'

2009

-Andhra Bank has been awarded the 'Indira Gandhi Rajbhasha Puraskar
2008' for the execution of official language policy in the bank.

-Andhra Bank on June 23 launched a deposit scheme 'AB Recurring Plus'

with several special features, including monthly instalments of not
less than Rs.100 and not more than Rs.1 lakh (core amount).

2010

- Andhra Bank has appointed Mr. A. A. Taj, General Manager, Union

Bank of India, as a whole time Director (designated as the Executive
Director) of Andhra Bank.

- Andhra Bank has entered into an insurance joint venture with Bank
of Baroda and Legal and General.Launching the joint venture under the
name IndiaFrist Life Insurance Company Ltd.

- Andhra Bank has has appointed Shri. Manoranjan Das, Special

Assistant, Andhra Bank, as Workmen Employee Director on the Board of
Directors of Andhra Bank for a period of three years from the date of
nomination or till he ceases to be a workmen employee of the Bank or
until further orders, whichever is earliest.

- Andhra Bank has appointed Shri Manoranjan Das, Special Assistant,

Andhra Bank, as Workmen Employee Director on the Board of Directors
of Andhra Bank for a period of three years from the date of
nomination or till he ceases to be a workmen employee of the Bank or
until further orders, whichever is earliest.

- Andhra Bank has tied up with the United Arab Emirates Exchange
Centre at Kuwait in an arrangement under which the bank's customers,
NRIs there, can remit amounts that will be credited to account
holders in India the same day.