| "We plan to start our overseas operations in fiscal 2005-06 subject to regulatory approvals," UTI Bank executive director S Chatterjee said. "International presence is necessary to cater to the growing Indian clientele that is looking to set up operations overseas or acquire small companies," he added. |
| The bank had sent a team to China and Sri Lanka to study business opportunities there. Based on the report, the bank has decided to open a branch in Sri Lanka to cater to the growing retail and trade finance demand in the country, said Chatterjee. |
| Consumer demand and buying pattern in Sri Lanka is very similar to that in India. The bank sees huge potential for retail and trade finance services in Sri Lanka, he added. |
| The bank is also looking at China as a potential business destination on account of the growing trade flows between China and India. |
| UTI Bank will set up an OBU in Singapore to cater to the trade finance requirements of the bank's existing corporate clients, he added. The OBU will function as a wholesale banking unit and also offer advisory services to high networth individuals (HNIs). |
| In addition to the overseas expansion plan the bank also aims to open 60 to 70 new branches and install 400 new automated teller machines (ATMs) in the financial year 2005-06. At present, the bank has a branch network of around 250 branches, 75 extension counters and 1,600 ATMs. |
| UTI Bank is set to raise around $ 250 million through global depository receipts (GDR) to support the bank's growth plans. |
| The bank plans to complete the capital raising process by March 2005. UTI Bank GDR will be listed on the London Stock Exchange (LSE) and the bank will also get a section 144 (A) filing done with the Securities and Exchange Commission (SEC) which will give it access to the US institutional investors. |
| Citigroup International and Merrill Lynch are the co-book runners to the issue while ABN Amro and RothsChild are the joint lead managers to the issue. |
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