The Telegraph
Since 1st March, 1999
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UTI Bank scrip soars on stake sale rumours

Mumbai, July 14: The UTI Bank scrip surged on the bourses today on rumours that its parent was in talks with a clutch of banks to sell its stake in the bank.

The scrip shot up 15 per cent or Rs 9.95 to Rs 75.15 after opening at Rs 67 and rising to an intra-day high of Rs 75.90. The counter witnessed 4742 trades, yielding a total turnover of Rs 5.99 crore.

According to sources, the operators continue to speculate that HDFC Bank is one of the front-runners eyeing the 33 per cent stake held by UTI-1. However, early this month, senior HDFC Bank officials had ruled out any such discussions.

While UTI Bank’s parent had earlier indicated that it was open to sell its stake, it did not give a specific time-frame. Reports even said that CDC Financial Services, Mauritius, which holds around 20 per cent in the bank, has no objection to UTI-1 selling its stake in the bank.

In March, the Life Insurance Corporation, Citicorp Banking Corporation, ChrysCapital LLC and Karur Vysya Bank picked up equity in UTI Bank from a preferential issue at a price of Rs 42.75 per share, totalling Rs 164 crore.

HDFC Bank net up

HDFC Bank has reported a 30.17 per cent rise in net profit at Rs 107.28 crore for the first quarter ended June 30, 2003, compared with Rs 82.41 crore posted in the same period previous fiscal.

Total income in the period under review also increased to Rs 717.19 crore (Rs 560.48 crore in corresponding quarter of last year), the bank said.

Net interest income grew by Rs 96.6 crore to Rs 285 crore, driven by average asset growth of 29.7 per cent and improvement in the net interest margin.

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