The bank was fined for non-compliance with RBI's directions on KYC norms, anti-money laundering standards and opening of current accounts.
The penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI, it said.
The benchmark one-year tenor MCLR, which is used to price most of the consumer loans, has been brought down to 8.30 per cent from 8.40 per cent.
The sale is expected to bring in Rs 700 crore for state-run lender Andhra Bank
Finance Minister Nirmala Sitharaman recently announced the merger of Oriental Bank of Commerce and UnitedBankwith Punjab National Bank, Syndicate Bank with Canara Bank, while Andhra Bank and Corporation Bank would merged with Union Bank of India.
The bank said it would soon introduce repo rate linked deposit and loan products.
The lender's total income, however, increased to Rs 5,437.03 crore in three months to June 2019 as compared with Rs 5,092.08 crore in the year-ago period, Andhra Bank said in a regulatory filing on August 2.
In its report that runs into over 70,000 pages, the investigating agency has charged officials of 13 banks of being hand-in-glove with the Bhushan Steel promoters
The board of directors of the bank at its meeting held on June 24, 2019, approved the proposal to raise the equity capital amounting to Rs 2,000 crore.
The bank had booked a net loss of Rs 2,535.82 crore in the corresponding quarter of 2017-18.
At 0943 hrs, Andhra Bank was quoting Rs 28.25, up 1.62 percent on the BSE.
The rise in the pace of the write-off exercise indicates that write-offs may be sizeable in the current year too.
Total income, however, rose to Rs 5,322.33 crore for the third quarter of 2018-19 as against Rs 5,093.43 crore in same period last year, Andhra Bank said in a regulatory filing.
Andhra Bank earlier last week reported a net loss of Rs 434 crore in second quarter of this fiscal, which widened against Rs 385.11 crore loss in year ago same period.
The controversy surrounding the appointment of Rakesh Asthana and how the probe into his misdemeanours is being thwarted, raises the question of whether the government exercises political discretion in selecting candidates who are pliant to their agenda.
The MCLR for overnight, 1 month, 3 month, 6 month and one year tenors has been raised by 0.15 percent each to 8.15 percent, 8.20 per cent, 8.40 percent, 8.55 percent and 8.70 percent, respectively, the bank said.
The judge directed Garg not to leave the country without permission from the court concerned.The high court said he will not directly or indirectly influence the witnesses or interfere with the further investigation.
The deal, which as per sources is valued at around Rs 710 crore, would see the United Kingdom-based Legal and General exiting the insurance business in India by selling its entire stake in IndiaFirst Life Insurance Company.
The RBI had earlier this month increased the key lending rate by 0.25 percent to 6.25 percent.
Justice A K Pathak issued notice to the agency on the plea of Anup Prakash Garg who sought bail saying he was arrested by the ED on January 12 in connection with the case involving a Gujarat-based pharma firm and has been in custody since then.
The Nifty PSU banking index jumped 3.66 percent led by Bank of India which zoomed over 9 percent intraday on the back of recovery of Rs 7,000 crore from other banks. Punjab National Bank was up 4.3 percent while Andhra Bank zoomed over 5 percent.