The Hindu Business Line : Higher advances lift UTI Bank Q3 net 30 pc

UTI Bank has recorded a net profit of Rs 131.71 crore for the quarter ended December 31, 2005, up 30.21 per cent from Rs 101.15 crore in the year-ago period. Higher advances and a robust growth in fee and other income contributed to the rise in profit.

The bank would be raising Tier-II capital of Rs 1,000 crore through a domestic bond issue before March-end to shore up the overall capital adequacy ratio and for expansion, said Dr P.J. Nayak, Chairman and Managing Director.

Total income for the third quarter was Rs 920.12 crore (Rs 634.21 crore). Net interest income (NII) was Rs 287.44 crore, up 54 per cent (Rs 187.03 crore).

Other income was Rs 173.42 crore (Rs 142.96 crore). and trading income was Rs 47.24 crore (Rs 40.88 crore). Total expenditure was Rs 663.92 crore (454.76 crore).

Dr Nayak said, "The high growth in our net interest incom is top of the line and we have not achieved this much in several quarters. Our net interest margin also grew to 2.94 per cent from 2.08 per cent last quarter."

Capital adequacy ratio was 11.58 per cent (9.38 per cent). Net non-performing assets as proportion of total assets was 0.95 per cent (1.3 per cent).

Net advances grew 49 per cent to Rs 19,531 crore (Rs 13,151 crore). Retail advances grew from Rs 3,917 crore to Rs 5,778 crore and accounted for 30 per cent of the total advances.

"While retail advances have grown 48 per cent, corporate advances have grown 49 per cent. We seen an upswing of a corporate credit business cycle, though rates have been hardening," said Dr Nayak.

Total deposits have grown 29 per cent to Rs 34,025 crore (Rs 26,326 crore). Share of low-cost advances (savings bank and current account) to total deposits was 35 per cent as on December 31, 2005, against 28 per cent last year.

The bank will open its first international branch in Singapore by next month and has also got approval for other countries. It opened 40 branches and extension counters and 83 ATMs in the third quarter.

On Friday, the scrip closed at Rs 317.25 on the Bombay Stock Exchange, up from the previous close of Rs 313.6.

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