Staff Reporter

KOCHI: The net profit of UTI Bank for the second quarter (Q2) of 2006-07 stood at Rs.141.98 crore as against net profit of Rs.109.01 crore during Q2 of last year, recording a growth of 30.24 per cent year-on-year.

The UTI Bank said in a press release here that the net profit for the first half-year was Rs. 262.53 crore, as against the net profit of Rs. 201.64 crore during the first-half of last year, recording a growth of 30.30 per cent year-on-year.

The net interest income for Q2 was Rs.365.17 crore as against Rs. 255.45 crore during Q2 of the preceding year, with a growth of 43 per cent. The operating profit for Q2 grew by a more modest 16 per cent year-on-year from Rs. 236.08 crore to Rs. 274.49 crore, largely on account of the increase in operating expenses by 53 per cent. The rapid growth in operating expenses was primarily due to the expansion of the number of personnel in the bank by 1,559 in Q2, the release said.

The net interest margin in Q2 was 2.92 per cent as compared to 2.68 per cent in Q1 this year and 2.80 per cent in Q2 of the preceding year. The trading profit for Q2 was Rs.23.33 crore as compared to Rs.68.63 crore during Q2 of the preceding year, a decline of 66 per cent year-on-year.

Savings bank deposits grew 66 per cent and current account deposits by 60 per cent year-on-year. Net advances grew by 58 per cent, with retail advances growing by 66 per cent. Net NPAs have increased marginally from 0.73 per cent to 0.74 per cent at the end of the previous quarter. The capital adequacy ratio as at the end of September 2006 was 11.52 per cent as compared to 10.28 per cent at the end June 2006.

The number of savings bank accounts grew from 28.47 lakh at the end of September, 2005, to Rs.40.15 lakh in the end of September 2006. Retail advances registered a significant jump, moving from Rs. 5,123 crore in the end of September 2005 to Rs. 8,514 crore in the end of September 2006, recording a growth of 66 per cent. The bank has set up 55 retail asset centres for focussed retail lending.

The net worth of the bank stood at Rs.3,018 crore at the end of September 2006 as compared to Rs.2,654.28 crores a year earlier, recording a growth of 14 per cent.

The bank's ATM network of 2,021 is the third-largest in the country. With 469 branches and extension counters, the bank has a presence in 268 cities and towns. The bank has got fresh approval from RBI for opening 100 new branches and 226 ATMs in the current year.

The bank launched its international credit card in August 2006. It launched Gold and Silver variants of its credit card, offering unique benefits to customers.

The bank opened its representative office in Shanghai in July 2006.

This is in addition to its overseas branch at Singapore, opened in April 2006.