UTI Bank Gets Rs 170 Cr Via Pref Equity Allotment

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New Delhi, Oct 8: : UTI Bank has mopped up Rs 170 crore through issue of preferential equity to the Life Insurance Corporation (LIC), the Commonwealth Development Corporation and three other investors at a price of Rs 42 per share in the last few months, chairman PJ Nayak told newspersons on Wednesday.

With this, its capital adequacy ratio has risen to 10.9 per cent and will be maintained at 11 per cent, he said after the launch of the MITR shared ATM network here.

The bank had issued preferential equity to four private equity funds — CDC, Citigroup Venture Capital, Chris Capital and Karur Vysya Bank. CDC’s holding had come down to 20 per cent from 26 after the issue, while Citi and Chris Capital had picked up 4 per cent each and Karur Vysya bought 1 per cent in UTI Bank. LIC had upped its stake to 13 per cent from 7-8 per cent last year.

The preferential issue was priced at Rs 42 a share and the bank mopped up Rs 170 crore, he added.

“Our paid-up capital has gone up to Rs 230 crore now from Rs 170 crore in March 2002,” he said. He parried questions on the sale of 33 per cent stake of UTI in the bank, however, asserting that, “it was up to the promoters to decide.”

He also ruled out any mergers or acquisition at present and said the bank intends to grow organically. “Our business was growing at 35-45 per cent in the last three years and the net profit was growing at about 45-55 per cent,” he said.