Mumbai: UTI Bank has reported a 42-per cent increase in net profit for the first quarter ended 30 June 2002 at Rs 35.98 crore as compared to Rs 25.36 crore in the corresponding quarter of the preceding fiscal.

The banks net interest income improved 117 per cent to Rs 59.88 crore (Rs 27.61 crore), while its fee-based income rose by 48 per cent to Rs 33.77 crore (Rs 22.88 crore). The trading income, however, was down by 68 per cent to Rs 25.10 crore (Rs 78.02 crore).

Says UTI Bank chairman and managing director P J Nayak: "The bank has reduced its cost of deposits substantially by focusing on savings-account deposits. A combination of increasing spreads and rising assets-base has seen growth in interest income. The bank has a retail customer base of 1.17 million and is adding 40,000 savings accounts every month."

The advances of the bank grew by 58 per cent to Rs 6,335 crore (Rs 4,019 crore). On the deposits front, the banks savings-account deposits rose by 51 per cent to Rs 972 crore (Rs 644 crore), while current-account deposits increased by 22 per cent to Rs 873 crore (Rs 713 crore).

The capital adequacy ratio of the bank was at 9.29 per cent as on 30 June 2002, compared with 10.65 per cent as on 31 March 2002.