UTI Bank Q4 Net Up 44% At Rs 87 Cr

Mumbai, April 29 | Updated: Apr 30 2004, 05:30am hrs
UTI Bank has posted a rise of 43.9 per cent in its net profit to Rs 87.1 crore for the quarter ended March 31, 2004 as compared with Rs 60.5 crore in the corresponding quarter of the preceding fiscal. Total income for the quarter fell to Rs 514 crore as against Rs 516.2 crore a year ago, mainly due to a decline of 56 per cent in trading income to Rs 34.6 crore.

The rise in net profit has been due to significant improvements in the net interest income and fee income. This is despite a decline in trading income, and it reflects the core strength of the bank, UTI Banks chairman and managing director PJ Nayak, noted.

For the fiscal 2003-04, the bank has posted a 44.8 per cent rise in its net profit at Rs 278.3 crore as against Rs 192.2 crore in 2002-03. The total income for the fiscal rose to Rs 2,126.9 crore (Rs 1,875.3 crore). The board has recommended a 25 per cent dividend for the fiscal ended March 31, 2004 as against 22 per cent in 2002-03.

The rise in net interest income was on account of lower cost of funds aided by much higher share of demand deposits and growth in assets, Dr Nayak pointed out.

The net interest margin for the quarter rose to 3.3 per cent from 2.6 per cent in the same quarter of the preceding fiscal. The share of the banks low cost deposits savings and current account rose to 38.1 per cent as at end-March 2004 as compared to 23 per cent as at end of March 2003.

Balance sheet size rose by 23 per cent to Rs 24,150 crore as on March 31, 2004 (Rs 19,613 crore). Deposits grew by 24 per cent to Rs 20,954 crore (Rs 16,965 crore). The net advances were up by 30 per cent Rs 9,363 crore for the fiscal 2003-04 (Rs 7,180 crore). The retail advances grew by 87 per cent to Rs 2,052 crore.

The net non-performing assets for the year were down to one per cent as on March 31, 2004 (1.9 per cent). The capital adequacy ratio of the bank stood at 11.2 per cent as on March 31, 2004 (10.9 per cent). Retail advances as at end March 2004 account for 22 per cent of the total advances and Dr Nayak expects the ratio to touch 30 per cent by the end of the current fiscal.