The Hindu Business Line : UTI Bank net rises 45 pc in first quarter

WITH lower cost of funds and substantial jump in treasury income, private sector UTI Bank has posted an over 45 per cent jump in net profit for the first quarter ended June 30, 2003 at Rs 52.18 crore, up from Rs 35.98 crore for the corresponding period of the previous year.

Other income, consisting of trading and fee income, increased 150 per cent to touch Rs 150.26 crore (Rs 59.86 crore) while interest earned increased marginally to Rs 393.94 crore (Rs 331.94 crore).

"The proportion of our demand deposits has increased substantially. This, coupled with good trading income from government securities and corporate bonds, has led to our profits this quarter. A large part of the trading income has been used for provisioning towards bad loans," said Dr P.J. Nayak, Chairman & Managing Director, UTI Bank.

Net interest margin has shown an improvement to 2.75 per cent from 1.65 per cent. The cost of funds has also come down to 6.35 per cent from 8.07 per cent.

Total income jumped to Rs 544.20 crore (Rs 391.80 crore) and total expenditure increased a tad to Rs 355.44 crore (Rs 334.92 crore).

The bank had embarked on the 90-day norm for recognition of non-performing assets and also accelerated provisioning this quarter, said Dr Nayak. With the new norms for NPA recognition in place, ahead of the RBI deadline of April 1, 2004, the net NPAs to net advances ratio of the bank rose to 2.46 per cent as on June 30, 2003, which would have otherwise been as low as 2.18 per cent with the 180-day norm. The net NPA ratio as on June 30, 2002 was 2.40 per cent.

Article E-Mail :: Comment :: Syndication

Stories in this Section
ABB India Q2 net up 39 pc

Crompton Greaves Q1 net up

Tata Power Q1 net up at Rs 99 cr

Godrej earns Rs 14-cr net in Q1 — Plans to set up facility in Himachal

Apollo Hospitals PAT up 14% in Q1

Parrys Confectionery posts Rs 23 lakh net

UTI Bank net rises 45 pc in first quarter

Bank of Rajasthan Q1 net up at Rs 25.59 cr