CRISIL has assigned its 'AA-/Stable' rating to the Rs 10 billion Tier I bond issue (under Basel III) of Andhra Bank, and has reaffirmed its ratings on the bank's existing debt instruments at 'AA+/AA/Stable'. CRISIL believes that Andhra Bank's credit risk profile will continue to derive significant strength from GoI's ownership and that the bank will maintain adequate capitalisation over the medium term.

The outlook may be revised to 'Positive' in case of sustained and significant improvement in Andhra Bank's asset quality and earnings profile. Conversely, sustained weakening in the bank's earnings profile, affecting its ability to maintain comfortable capitalisation, may lead to a revision in the outlook to 'Negative'.

Shares of the company gained Rs 0.4, or 0.53%, to trade at Rs 75.45. The total volume of shares traded was 200,944 at the BSE (3.06 p.m., Wednesday).