• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Ties up with Geojit

Mumbai , May 25

UTI Bank plans to raise Rs 2,000-2,500 crore worth capital in 2006-07 to meet its growth requirements.

The bank will raise this either through hybrid Tier-I issue or upper Tier-II bonds, said Dr P.J. Nayak, Chairman and Managing Director.

He was speaking to newspersons on the sidelines of a press conference to announce the bank's tie-up with Geojit Financial Services to offer online trading services.

"We require the capital to maintain our current growth rate and for our overseas operations in Singapore. The hybrid issue and upper Tier-II issue are subject to approval from the Reserve Bank of India."

If the RBI does not permit it, the bank would look at raising equity capital, he added.

The bank needs funds to maintain its capital adequacy ratio domestically and to finance its overseas operations.

The capital raising is part of UTI Bank's medium term note programme of US $1 billion.

The bank is looking at overseas locations such as Hong Kong, China, and Sri Lanka for expansion. As on March 31, 2005, the bank's CAR was 11.08 per cent.

About the new online trading service, Dr Nayak said: "It completes the personal investment portfolio for the bank. We are also planning to extend trading to other products including commodities and bonds in the fixed income category in future."The service provides an integrated three-in-one account, which includes savings bank, demat, and online broking accounts.

Mr C.J. George, Managing Director of Geojit, said: "Geojit has 5,000 customers in the Gulf and UTI Bank is our banking partner.

More Stories on : Private Banks | Financial Services

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

Stories in this Section
Private insurers may face capital crunch

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line