UTI Bank Q3 net rises 45%

UTI Bank has reported a rise in net profit of 45.35 per cent for the third quarter ended December 31, 2003, to Rs 74.86 crore as against Rs 51.50 crore in the corresponding period in the previous fiscal.

Net profit for the nine months ended December 31 grew by 45.24 per cent to Rs 231 crore from Rs 191.81 crore in the previous comparable period.

Total income of the bank for the third quarter rose 8.74 per cent to Rs 528.10 crore from Rs 485.62 crore in the previous fiscal on the back of rise in other income.

The non-interest income of the bank rose by 22.28 per cent to Rs 137.61 crore (Rs 112.53 crore) while interest income of the bank rose marginally to Rs 390.49 crore (Rs 373.09 crore).

The UTI Bank scrip closed on the Bombay Stock Exchange at Rs 168.95, up 9.28 per cent.

Trading profits of the bank for the third quarter rose by 30.05 per cent to Rs 94.16 crore from Rs 72.40 crore in the corresponding period in the previous fiscal.

Trading profits in the second quarter was at Rs 101.90 crore. The share of trading profits to the operating revenue declined from 36 per cent in the second quarter to 33 per cent in the third quarter.

"Other than bonds and government securities, the bank has a trading book on equities. This time a substantial part was from the equity book with the profits from the other two books remaining modest," said PJ Nayak, chairman and managing director, UTI Bank.

The provisions and contingencies rose by 58.64 per cent to Rs 65.52 crore (Rs 41.30 crore). The bank has moved to a 90-day non-performing asset (NPA) recognition norm in the current year.

Net NPAs at the end of December 2003 was at 1.45 per cent. In addition to the provisioning requirements as per RBI norms, the bank has also made a floating provision of Rs 126.90 crore during the nine month ended December 31.

Net interest margin of the bank for the third quarter increased to 3.18 per cent (2.23 per cent). The daily average cost of funds in the quarter decreased to 5.50 per cent (7.33 per cent).

Nayak added that the demand deposits of the bank have risen to 28.33 per cent compared with 16 per cent a year before.

Its savings bank deposits grew 83 per cent to Rs 2,191 crore (Rs 1,198 crore) while current account deposits grew 148 per cent to Rs 2,743 crore (Rs 1,108 crore).

HSBC open offer from Jan 31

The HSBC open offer for UTI Bank shareholders will kick off on January 31 and will end on March 1. HSBC, which had recently picked up a 14.58 per cent stake of CDC in UTI Bank, will make the open offer at Rs 90 per share.

HSBC will also take over the remaining 5.37 per cent stake of CDC in the bank taking its stake to 20 per cent.