As the government pushes the cases of public sector banks’ recapitalisation, most PSU banks have already hit the road to raise capital through a qualified institutional program.

Mid sized PSU lender Andhra Bank is looking to raise nearly Rs 500-600 crore through the QIP program, said four people directly familiar with the matter.

“The road shows for Andhra Bank was concluded last week. The investment bankers met investors in India and across Asia for the process,” said the first person familiar with the development.

Investments banking firms ICICI Securities, SBI Caps and a foreign investment bank have been mandated for the process.

“They are waiting to see the traction that they can receive for the share sale program and plan to launch it by first or second week of December,” said the second person mentioned above.

Andhra Bank has a resolution in place to raise upto Rs 1000 crore through a share sale program but it is looking to raise nearly half the amount. It will be one of the early ones to launch its QIP program.

The mid sized lender suffered Rs. 385 crore loss for the quarter ended September 30, 2017 due to higher provisioning for bad loans.

All PSU banks are currently on road meeting investors and sharing their PPM’s to launch their QIP issuances.

Another state run lender Indian Bank which has a resolution to raise nearly Rs 1500 crore is currently on its road show which is expected to conclude in a week’s time.

“Indian Bank will probably be the second or third lender to launch its QIP in early December. Almost half the state run banks are slated to launch their issuances during this period”, said the third person mentioned above.

Other banks that are on road to raise capital include Punjab National Bank, Union Bank and Bank of India.

Andhra Bank, Indian Bank, ICICI Securities did not respond to an ET NOW query.