Among the risk factors the bank's prospectus referred to the Janakiraman Committee which had highlighted the various irregularities committed by the banks and financial institutions etc. in their securities transactions in the six reports submitted during May 1992 to April 1993.

As per these reports the total value of securities transactions undertaken during the period from April 1, 1991 to May 23, 1992 amounted to Rs.1,285,549 crore, of which the transactions amounting to Rs 26,449 crore had been undertaken by the Andhra Bank on behalf of all others (not on "own" account).

The committee has also established the gross problem exposure of banks at Rs.4,024.45 crore of which Andhra Bank Financial Services Ltd's (ABFSL) exposure on account of securities found to be forged/fabricated amounted to Rs 205.12 crore. The Andhra Bank was involved in a total number of 5 cases amounting to Rs 293.34 crore on account of the scam of which one case amounting to Rs 91.36 crore has been settled without any liability devolving on the Bank.

The remaining 4 cases amounting to Rs 201.98 crore are pending as on date. Andhra Bank Financial Services Ltd. (ABFSLK), a wholly owned subsidiary of Andhra Bank was involved in a total number of 36 cases amounting to Rs 730.35 crore on account of the scam, of which 23 cases amounting to Rs.424.53 crore have been settled without any liability devolving on ABSFSL.

The remaining 8 cases amounting to Rs 322.44 crore are pending as on date,, the details of which are disclosed in page number 43 of this offer document.Also there are fifteen proceedings against the Andhra Bank involving Income Tax liabilities of Rs 38.72 crore are pending in appeal with IT authorities. These pertain to the addition of national interest on sticky advances.