The Hindu Business Line : UTI Bank net up 30 pc in Q2

A rise in net interest and fee incomes has helped UTI Bank to post a 30 per cent rise in net profit at Rs 141.98 crore during the second quarter ended September 30 against Rs 109.01 crore during the corresponding period last year. Trading (treasury) income has fallen by 66 per cent to Rs 23.33 crore (Rs 68.63 crore).

Higher net interest and fee incomes made up for the sharp drop in treasury profits, said Dr P.J. Nayak, Chairman and Managing Director, UTI Bank. Trading profits were lower as the bank trimmed its exposure to the markets. Also, the bullish phase in bonds began late in the second quarter. However, the bank recorded no valuation losses in the second quarter, said Dr Nayak.

Total income has gone up to Rs 1,254.86 crore (Rs 865.73 crore). Corporate advances have grown 55 per cent to Rs 20,607 crore (Rs 13,281 crore) and the retail loan book has grown by 66 per cent to Rs 8,514 crore (Rs 5,123 crore).

"The improvement in net interest margins coupled with robust loan growth are encouraging," said Mr Vishal Goyal, banking analyst, Edelweiss Research.

UTI Bank has chosen Metlife Insurance as its bancassurance partner in the life insurance segment, said Dr Nayak.

The bank has also received RBI approval for opening 100 new branches and 226 ATMs in the current year. Its net profit for the first half-year was Rs 262.53 crore (Rs 201.64 crore), showing a growth of 30 per cent.

UTI Bank's shares closed at Rs 410, higher than its previous close at Rs 397.30 on the BSE.