UTI Bank to up branch network in south to 80

UTI Bank is planning to increase its branch network in the south to about 80 from the existing 44 by the end of the next financial year.

"We are planning to add 15 branches by the end of the current fiscal in all the four southern states. Another 15 to 20 branches will be added in the next fiscal," L J Fonseca, senior vice-president and south head of the bank, said at a press meet here today. The bank has a total network of 176 branches and 62 extension counters in the country.

"Among the southern states, Andhra Pradesh offers great potential for the bank with 40 per cent of our southern region's business accruing from the state," Fonseca said. We are planning to more than double the existing number of ATMs in the state to about 250 by the end of next year and double the branch network from the existing 10," he said.

The bank's southern region has deposits to the tune of Rs 2,300 crore and a similar amount of advances, out of the bank's total deposit base of Rs 17,000 crore and Rs 9,000 crore advances. According to Fonseca, the bank has posted a rapid growth in the past three years with an increased focus on retail segment and low cost deposits.

The bank has 326 ATMs in the south out of the total 1,200 in the country. In addition to its own ATM network, the bank also has an ATM sharing arrangement with SBI, ABN Amro and Global Trust Bank.

For the quarter ended December 2003, the bank posted an increase of 45.36 per cent in net profit at Rs 74.86 crore as against Rs 51.50 crore in the corresponding quarter of the previous fiscal. Retail advances grew 143 per cent to Rs 1,869 crore during the quarter compared to Rs 771 crore a year ago.

Retail advances accounted for 22 per cent of the total advances of the bank. The bank's net interest margin for the quarter was 95 basis points higher at 3.18 per cent (2.23 per cent).