UTI Bank net profit up 44% to Rs 60.53 crore in fourth quarter

Our Banking Bureau
07 May 2003

The board of directors has recommended a dividend of 22 per cent, which would work out to Rs 2.20 per share with a total payout of Rs 47.71 crore.

The profits were attributed to the growth in assets, both retail and corporate, and the lowering of cost of funds, says UTI Bank chairman P J Nayak. "Retail now constitutes 15 per cent of the balance sheet, up from 5 per cent in 2001-02 and we aim to take it to a quarter of our balance sheet."

The total income for the quarter increased to Rs 516.20 crore from Rs 447.75 crore. Regarding UTI''s holding of 33.56 per cent in the bank, Nayak says: "If they are to exit at all, it will be a secondary market transaction between the existing investors. We will not be entering the primary market in the near future."

The promoters'' holding decreased this year by 8.15 per cent by way of the preferential issue to foreign institutional investors and institutional investors in March 2003.

For the financial year ended 31 March 2003, the net profit jumped by over 43 per cent to touch Rs 192.18 crore (Rs 134.14 crore). The total income for the full year increased to Rs 1,875.28 crore (Rs 1,594.40 crore).

Meanwhile, other income decreased to Rs 410.47 crore (415.87 crore), and the interest earned for the fourth quarter grew by over 13 per cent to Rs 396.49 crore (Rs 349.23 crore). Other income grew to Rs 119.71 crore (Rs 118.52 crore).