The Hindu Business Line : UTI Bank Q4 net up 30 pc

UTI Bank has posted a net profit of Rs 151.73 crore for the fourth quarter ended March 31, 2006, up 30 per cent from Rs 116.54 crore for the quarter ended March 31, 2005.

The rise in profits was mainly on account of increase in fee income and interest income, despite an upturn in the cost of funds, said Dr P.J. Nayak, Chairman and Managing Director, UTI Bank.

The bank has recommended a dividend of Rs 3.5 per share with a face value of Rs 10.

"We managed to ride the wave of rising interest rates," said Dr Nayak.

Total income for the quarter was Rs 1,060.72 crore (Rs 722.42 crore). Net interest income was Rs 312.86 crore (Rs 196.29 crore).

Other income was higher at Rs 228.07 crore (Rs 166.37 crore). Fee income increased 47 per cent to Rs 162.38 crore (Rs 110.26 crore). "Fee income consists of fees for ATM sharing, capital market services and loan syndication,'' Dr Nayak said.

Total expenditure was Rs 762.67 crore (Rs 522.47 crore).

UTI Bank continues to be a leader in debt syndication and had syndicated debt amounting to Rs 34,540 crore in 2005-06.

For the full-year, net profit was Rs 485.08 crore (Rs 334.58 crore). Total income was Rs 3,618.42 crore (Rs 2,339.98 crore). Total expenditure was Rs 2,624.61 crore (Rs 1,774.36 crore).

Capital Adequacy Ratio was 11.08 per cent against 12.66 per cent.

The percentage of net NPAs to total NPAs is 0.75 per cent (1.07 per cent). "We had a remarkable recovery in our stressed assets through a combination of working with the companies and actual recovery," Dr Nayak said.

During the year, total deposits increased to Rs 40,114 crore (Rs 31,712 crore). Ratio of low-cost deposits to total deposits was 40 per cent against 38 per cent last year.

Net advances were up at Rs 22,314 crore (Rs 15,603 crore).

In 2006-07, the bank hopes to raise hybrid Tier-I capital in foreign currency through its Singapore branch, subject to approval from the Reserve Bank of India. "This will be capital for the bank but the money would be used to fund its business in Singapore. If we do not get approval for hybrid Tier-I capital, we may look at raising equity capital this fiscal," Dr Nayak said.

Out of its plan to raise Rs 1,000 crore through a domestic bond issue, the bank has raised Rs 500 crore in the last quarter and will raise the rest in this fiscal.

The bank will launch its credit card in the first quarter of 2006-07. "This is the only product missing in our portfolio," Dr Nayak said.

Shares of UTI Bank ended Monday's trade on the BSE at Rs 334.90, up 4.95 per cent from the previous close of Rs 319.10.

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