The Telegraph
Since 1st March, 1999
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Andhra Bank securitisation

Mumbai, Nov. 9 (PTI): Andhra Bank plans to securitise housing loan portfolio worth Rs 200 crore in the second half and intends to double its investment fluctuation reserve (IFR) to 5 per cent by March next year.

“We have identified home loan portfolio for securitisation for which due diligence is under way,” bank executive director R. Balakrishnan said here today.

The portfolio of Andhra Housing Finance Ltd, its home loan subsidiary which was merged with the parent, has been consolidated with the bank’s own balance-sheet.

The bank’s housing loan portfolio stood at Rs 1,260 crore (Rs 760.8 crore in September 2002) on September 30, down a notch from Rs 1,264.26 crore at the end of June.

On building up the investment fluctuation reserve, Balakrishnan said the bank has provided Rs 200 crore, or 2.5 per cent of investments in categories “held for trading” and “available for sale” in March. “We plan to double the reserve to 5 per cent by March to guard against possible reversal of interest rates in future,” he added.

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