The Hindu Business Line : UTI Bank net rises 44 pc; to pay 25 pc

WITH lower cost of funds and increased margins, UTI Bank has posted a 43.9 per cent jump in net profit to Rs 87.09 crore for the fourth quarter ended March 31, 2004, up from Rs 60.53 crore in the corresponding period of the previous year. For the full year, the bank posted a 44.8 per cent jump in net profit to Rs 278.31 crore (Rs 192.18 crore) and proposed a dividend of Rs 2.50 per share.

During the fourth quarter, the net interest income jumped by over 49 per cent to Rs 164.14 crore (Rs 109.98 crore) and fee and other income was up by over 63 per cent to Rs 67.82 crore, said a press release from the bank. These two factors helped compensate for the 56 per cent drop in trading income to Rs 34.64 crore (Rs 78.29 crore). The share of trading profits to the operating revenue declined from 34 per cent in Q4 of the preceding year FY 03 to 13 per cent in Q4 FY 04.

Total income of the bank decreased marginally to Rs 513.97 crore (Rs 516.20 crore) and total expenditure reduced to Rs 372.36 crore (Rs 390.22 crore).

Net interest margin increased for the year to 3.05 per cent (2.09 per cent) while cost of funds reduced to 5.7 per cent (7.53 per cent).

Over the full year period, net advances of the bank grew 30 per cent to Rs 9,363 crore with retail advances growing by 87 per cent to Rs 2,052 crore (Rs 1,100 crore). Retail advances now accounts for 22 per cent of the total advances of the bank as at end March 2004. The bank has set up retail asset centres at 15 cities for focussed retail lending.

Deposits grew by over 23 per cent to Rs 20,954 crore (Rs 16,965 crore) with good growth in low cost deposits. The share of low cost deposits — savings bank and current account — rose to 38.08 per cent as at end March 2004 as compared to 23 per cent in the previous year.

The bank has ended FY 04 with a capital adequacy ratio of 11.21 per cent and net NPAs at 1.03 per cent of net customer assets on a 90-day basis and an Investment Fluctuation Reserve of 3 per cent.