UTI Bank considers public issue

Thiruvananthapuram: UTI Bank is planning to come out with a public issue some time in the next financial year - that is, if the market conditions prove to be favourable.

The bank is already in the process of bringing down the equity holding of UTI, the promoter, from 44.88 per cent to 40 per cent through the private placement route, says UTI Bank chairman and managing director Dr P J Nayak. This is in line with RBI guidelines.

Earlier, the promoters stake had come down - to 44.88 per cent from 61.90 per cent - consequent to CDC Financial Services (Mauritius) Ltd and South Asia Regional Fund taking up 26.01 per cent in the banks equity.

Nayak told newspersons here that the bank is looking at the possibility of coming out with a public issue to expand the equity-base. But, if the market conditions turn out to be unfavourable, it may consider going in for private placement.

Nayak, who was here in connection with the opening of the banks new branch in the city, its 107th in the country, said the branch network will be expanded to 140 during the next financial year. The number of ATMs will also go up to 800 from 470 as of now.