The bank plans to enter the capital market for the first time in December this year with its "premium offer" to raise additional resources, bank's chairman and managing director RJ Kamath announced on Thursday.

Talking to reporters here along with executive director N Vasanthan, he said the size and the nature of the initial public offer (IPO) would be shaped around September but indicated that its public issue would have a good premium.

Andhra bank's total business with Rs 15,216 crores had shown a nearly 34 per cent growth and the bank had declared a 20 per cent dividend in 1998-99.

Currently in a growth orbit, Andhra Bank has set a target of Rs 21,500 crores total business--deposits of Rs 14,500 crores and advances of Rs 7,000 crores--for 1999-2000, a 40 per cent targetted growth over 1998-99.

Kamath said with apaid up capital of Rs 347.95 crores as on March 1999 the bank had wiped off the earlier accumulated losses as permitted by the Government of India, which had granted autonomy to it last year. The net non-performing assets of about Rs 192.57 crores amounting to 4.26 per cent was the lowest among the public sector banks--and could have been lower but for reclasssification --the operating profit of the bank was Rs 156.52 crores during the financial year and was programmed to reach Rs 356 crores by 2001--targetting to reach rs 224 crores during the current financial year, he added.

The bank had in may 1999 floated subordinated debt bonds under tier-II capital and recieved rs 150 crores. The capital to risk assets ratio (crar) stood at 11.2 per cent as against statutory 8 per cent and with the addition of rs 150 crores to the capital, the crar position would further improve, he added.