UTI Bank, a strong mid-sized private bank, today said it expects its loan portfolio to grow 30-40 per cent in 2007-08 and it might raise ¤554 million during April-September. | |
| After strengthening core banking business, the bank will enter insurance and other financial services in a couple of years. It is also on an expansion drive overseas and will concentrate on the United Kingdom, Africa and central Asia going forward. |
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| "We may raise ¤ 554 million in the next financial year, possibly in the first half of the year," said UTI Bank Chairman and Managing Director P J Nayak, after signing an agreement with India Infrastructure Finance Company to jointly finance projects. |
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| This ¤ 554 million ($729 million) fund is part of the ¤1 billion medium-term note (MTN) programme of the bank launched in the current financial year. It has already raised ¤446 million under the MTN. The bank will utilise the proceeds to fund overseas expansion. |
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| The bank has recorded 60 per cent growth in loans till December 2006. The credit growth in the financial year ending March 31 would be robust despite a slowdown expected in the banking industry, Nayak said without giving any growth figure. |
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| "We see 30-40 per cent growth in the retail and corporate portfolios in the next financial year (2007-08)," Nayak said. |
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| The bank's total credit portfolio stood at Rs 32,337 crore as on December 31, 2006, compared with Rs 19,531 crore in the same period in 2005-06. Deposits grew by 50 per cent to Rs 50,920 crore during the same period, which is high compared with the industry average of 20-25 per cent. |
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| UTI Bank today tied up with IIFCL, the special purpose vehicle of the government, to provide deal flow of infrastructure projects, undertake protect appraisal, loan syndication and co-finance. |
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