The Hindu Business Line : Core banking gains lift UTI Bank Q3 net up 45 pc

AIDED by an increase in net interest income through core banking business, UTI Bank has registered a 45.3 per cent jump in net profit to Rs 74.86 crore for the quarter ended December 31, 2003 up from Rs 51.50 crore in the corresponding period of the previous year.

"Our profits were mainly due to the increase in the net interest income," said Dr P.J. Nayak, CMD, UTI Bank.

While net interest income increased by 66.6 per cent to Rs 146.14 crore (Rs 87.69 crore), other income also rose by 22.3 per cent to Rs 137.51 crore (Rs 112.53 crore).

Total income increased to Rs 528.10 crore (Rs 485.62 crore) as total expenditure declined to Rs 350.08 crore (Rs 363.89 crore).

Net interest margin for Q3 was 3.18 per cent up from 2.23 per cent in Q3 of the previous year. The daily average cost of funds decreased to 5.50 per cent in Q3 from 7.33 per cent in Q3 of the previous year.

The net NPAs as percentage of net customer assets were at 1.45 per cent as at end December 2003 as compared to 1.97 per cent as at end September 2003.

In addition to the provisioning requirements prescribed by the central bank, the bank has made a floating provision of Rs 126.90 crore during the nine months ended December 31, 2003 with the NPA coverage touching 65 per cent higher than the industry average of 60 per cent.

Retail advances registered a significant jump of 143 per cent to Rs 1,869 crore as at end December 2003 up from Rs 771 crore as at end December 2002. Retail advances now account for 22 per cent of the total advances of the bank.

With regards to HSBC picking up stake in the private bank, the purchase of 20 per cent stake from CDC Capital Partners is to take place following the close of the open offer to be made by HSBC. The open offer, which commences on January 31, 2004, is to close on March 1.

The British bank may not receive a board seat in UTI Bank, "the board will take a decision on whether HSBC should get a seat. However, legally they are not entitled to a seat since they are only financial investors," said Dr Nayak. The networth of the bank stood increased at Rs 1,112.44 crore as compared to Rs 746.43 crore a year earlier. Capital adequacy has been shored up to 11.20 per cent up from 9.84 per cent.

More Stories on : Financial Performance | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Economic theories prove inadequate for current realities

Forwards active; gilts range-bound

Banking stocks tumble on expectation of weak results

Syndicate Bank net falls on higher tax liabilities

Core banking gains lift UTI Bank Q3 net up 45 pc

Aviva hikes capital by Rs 88 cr

King-sized LIC policy

Oriental risk products at post offices

IDBI gearing to turn retail commercial bank — Plans to set up 100 branches