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UTI Bank profit rises 43% to Rs 192 crore

Mumbai, May 6: UTI Bank has posted a 44 per cent rise in net profit at Rs 60.53 crore for the fourth quarter ended March 31, 2003, against Rs 42.06 crore in the corresponding previous period. During the quarter, the bank’s total income increased to Rs 516.20 crore from Rs 467.75 crore in the same period last year.

The bank has posted a net profit of Rs 192.18 crore in 2002-03 compared with Rs 134.14 crore in the previous fiscal — a rise of 43 per cent. Total income of the bank increased from Rs 1,594.40 crore to Rs 1,875.28 crore.

The bank’s board has recommended a dividend of 22 per cent for 2002-03.

The bank added that it has grown rapidly in the last year with the balance sheet reaching Rs 19,613 crore as on March 31, 2003, a growth of 36 per cent from Rs 14,381 crore a year earlier.

The bank’s deposits also showed a robust growth of 38 per cent at Rs 16,965 crore (Rs 12,287 crore). The growth in demand deposits to Rs 3,909 crore (23 per cent of total deposits) from Rs 2,027 crore (16.5 per cent of total deposits) a year earlier — a rise of 93 per cent — was a noticeable achievement, the bank said.

Net advances of the bank too grew strongly by 34 per cent, reaching Rs 7,180 crore from Rs 5,352 crore a year earlier. Retail assets contributed significantly to the growth in advances of the bank and at Rs 1,100 crore it constituted over 15 per cent of the total advances.

UTI Bank pointed out that an integrated risk management discipline has proved effective in mitigating both credit risks as well as market risks. Following this, net NPAs came down to 1.92 per cent from 2.67 per cent a year earlier. Gross NPAs declined to 2.66 per cent as compared with 4.01 per cent a year earlier.

Meanwhile, the bank will spend Rs 50-60 crore to open 50 new branches and over 250 ATMs even as it is likely to raise over Rs 100 crore though subordinated bonds to support business growth in the current fiscal.

“The capital expenditure, including new IT investments for increasing ATMs to 1,100 and opening new branches, is pegged at Rs 50-60 crore,” chairman and managing director P. J. Nayak said. “We will continue to forge ATM sharing arrangements with other banks, including state-owned entities,” he added.

Nayak said the bank does not have any plans for induction of fresh capital, both in equity and debt, as its present capital adequacy ratio of 10.9 per cent is sufficient.

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