Hyderabad based, public sector lender, Andhra Bank has proposed to scale up its branch network to 2000, by adding another 500 branches to its existing network.

The bank plans to set up 121 branches outside the home state (Andhra Pradesh) this fiscal, as revealed by R S Reddy, the Chairman, and Managing Director of the bank.

Reddy also said that the bank has crossed Rs one lakh crore of business and is now targeting a business of Rs 1.50 lakh crore by September 2010. He also claimed that the bank has announced a 45 percent dividend, which is highest in the country.

Currently the bank has a network of 1452 branches, 52 extension counters, and 18 services centers. Most of the branches are concentrated in the mother state and account for nearly 53 percent of the total bank business.

Recently, the bank inaugurated ten new branches in Mumbai Zone on a single day.

Bank is planning to open branches in Kerala and aims at a business of Rs 750 crore there by March next year.

Reddy also revealed that the bank plans to foray in insurance business in alliance with Bank of India and UK based ‘Legal and General Plc' with 23 percent stake holding in the venture.

The benchmark lending rate of Andhra bank is currently pegged at 12 percent.