UTI Bank bottomline darts up 35% to Rs 70.67crore

UTI Bank today announced a 35.44 per cent jump in net profit at Rs 70.67 crore for the first quarter (April-June) of financial year 2004-05, up from Rs 52.18 crore in the corresponding quarter of the previous year. The bank's board approved the unaudited results in Mumbai on Wednesday.

At the end of the first quarter, UTI Bank's capital adequacy ratio is 11.11 per cent and net non-performing assets (NPAs) is at 1.16 per cent, down from 2.46 per cent at the end of June last year but marginally up from 1.03 per cent in March this year.

The quarterly earning per share (EPS), at Rs 3.00, was 33 per cent higher than the EPS of Rs 2.26 in the first quarter of the previous year.

The net interest income for the first quarter was Rs 165 crore against Rs 120.20 crore during Q1 of the previous year registering a year on year growth of 37.27 per cent. The net interest margin (the spread between deposit cost and interest earned on assets) went up to 3.01 per cent from 2.75 per cent.

The bank generated Rs 31.05 crore of trading profits, compared with Rs 117.71 crore in Q1 of the preceding year "" a fall of 74 per cent.

The share of trading profits to the operating revenue declined from 44 per cent to 11 per cent in the first quarter of FY 04-05. Fee income shot up by 143 per cent y-o-y to Rs 79.03 crore (Rs 32.55 crore).

The cost of funds has come down 6.35 per cent in first quarter last year to 4.83 per cent now. Lower cost of funds aided by the much higher share of demand deposits, together with the growth in assets, contributed to the rise in net interest Income, a bank release said.

The advances of the bank grew to Rs 9,910 crore as at the end of June this year from Rs 6,827 crore in June last year "" a 45 per cent y-o-y growth.