UTI Bank today said its net profit in the third quarter ended December 2006 rose 40 per cent on the back of a rapid growth in advances and fee income. | |
| The mid-sized bank's net profit in the October-December quarter increased to Rs 184.61 crore from Rs 131.71 crore a year earlier with net interest income rising by 44.67 per cent to Rs 415.84 crore from Rs 287.44 crore a year earlier. |
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| Fee and other income increased by 58.86 per cent to Rs 200.46 crore. |
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| Advances expanded by 66 per cent to Rs 32,337 crore y-o-y and deposits grew by 50 per cent to Rs 50,920 crore. |
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| "Net profit grew on the back of a fairly aggressive growth in our loan book, improvement in spreads and, most importantly, a 59 per cent y-o-y growth in our fee income along with a modest growth in trading income," said P J Nayak, chairman and managing director, UTI Bank. |
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| The loans growth for the industry is close to 30 per cent for the third successive year and the deposits growth is at 21 per cent, which is higher than the less than 20 per cent growth in the previous two years. |
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The bank's total income in the third quarter of 2006-07 rose 59.69 per cent to Rs 1,469.36 crore from Rs 920.12 crore a year earlier.
| UTI BANK | | (Rs crore) | Quarter ended Dec | % chg | | 2005 | 2006 | | Interest earned | 746.70 | 1189.62 | 59.32 | | Other income | 173.42 | 279.74 | 61.31 | | Total income | 920.12 | 1469.36 | 59.69 | | Total expenses | 663.92 | 1110.73 | 67.30 | | Operating profit | 256.20 | 358.63 | 39.98 | | Net profit | 131.71 | 184.61 | 40.16 | | EPS (Rs) | 4.74 | 6.59 | 39.03 | | CAR (%) | 11.50 | 11.83 | - |
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| Net interest margin (NIM) rose to 3 per cent from 2.92 per cent in the preceding quarter and 2.94 per cent a year earlier. |
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| "The impact of rising interest rates was cushioned by managing the funding side through low-cost deposits. Demand deposits continued to grow at 60 per cent y-o-y leading to a marginal 11 basis points increase in cost of funds over the previous quarter despite rising rates," said Nayak. |
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| The bank's cost of funds rose marginally to 5.53 per cent in the third quarter from 5.42 per cent in the preceding quarter. |
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| With savings account deposits of Rs 10,431 crore and current account deposits at Rs 8,452 crore, the CASA (current account and savings account) mix was at 37.08 per cent of total deposits as on 31 December,2006, against 34.70 per cent a year earlier. |
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| UTI Bank has also reported a trading profit of Rs 79.28 crore for the third quarter compared with a trading profit of Rs 47.24 crore a year earlier. |
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| Corporate advances at Rs 23,159 crore and retail advances at Rs 9,178 crore registered a growth of 68 per cent and 59 per cent respectively. |
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| Net non-performing assets as a proportion of total loans declined to 0.68 per cent in the quarter from 0.95 per cent a year earlier. |
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| UTI Bank's capital adequacy ratio rose to 11.83 per cent on 31 December from 11.58 per cent a year earlier. |
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