UTI Bank announces internet and retail plans - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

UTI Bank announces internet and retail plans

Feb 25, 2000

UTI Bank has announced its plans to launch internet banking and increase its thrust into retail banking by March'2000. The bank would offer business to business (B2B) products such as cash management services to its corporate clients and also offer business to commerce (B2C) products to enable its clients to enter into transactions. As soon as the cyberspace laws are in place UTI Bank plans to tie-up with web portals to offer B2C products. On the information technology front with the aim of networking all its 45 branches UTI Bank has tied up with Infosys Technologies and Wipro. Wipro would lay the entire network for the bank and Infosys Technologies would provide the software support.

However UTI Bank has not specified the following: the amount that it would be spending towards this internet activity, how much returns would be generated from this for the bank. It has not announced a tie-up with any payment gateway as in the case of HDFC Bank and ICICI Ltd.

The other two banks to have launched internet banking are HDFC Bank and ICICI Bank. They have been very aggressive on this front with HDFC Bank announcing a tie for a payment gateway with Singapore Telecom for its e-commerce activities. HDFC Bank has also announced products like BillPay which provides its web customers to pay their phone bills from any place and at anytime. ICICI Bank has entered into a joint venture with Satyam Infoway for the online distribution of retail banking products on the internet.

Through the internet these banks would be able to provide everything from credit cards, housing loans, consumer loans to project finance on the internet. There are currently 2 m internet users in India and this is growing at a very fast pace of 25%-30% per annum. These internet related ventures can be seen as the key to future profitability in the banking sector as they can leverage on their strong and trusted brand names. As competition in the retail segment is on the rise those companies with the technology edge will be able to garner up more customers. They will be able to provide a more convenient and better range of products and services and this will eventually lead to banking from the convenience of your home. Other players in the banking sector too realise this need of higher technology and tie-ups of this nature in banking and finance sector are increasing.

Market View:
UTI Bank has not been viewed favourably by the market as it has been promoted by a public institution. However as has happened in the case of other private sector banks like ICICI Bank and HDFC Bank, UTI Bank is also likely to be re-rated by the market given its recent thrust to use technology.

Equitymaster requests your view! Post a comment on "UTI Bank announces internet and retail plans". Click here!


More Views on News

AXIS BANK Announces Quarterly Results (3QFY21); Net Profit Down 36.4% (Quarterly Result Update)

Jan 28, 2021 | Updated on Jan 28, 2021

For the quarter ended December 2020, AXIS BANK has posted a net profit of Rs 11 bn (down 36.4% YoY). Sales on the other hand came in at Rs 155 bn (down 1.3% YoY). Read on for a complete analysis of AXIS BANK's quarterly results.

AXIS BANK Announces Quarterly Results (1QFY21); Net Profit Down 18.8% (Quarterly Result Update)

Jul 30, 2020 | Updated on Jul 30, 2020

For the quarter ended June 2020, AXIS BANK has posted a net profit of Rs 11 bn (down 18.8% YoY). Sales on the other hand came in at Rs 165 bn (up 8.4% YoY). Read on for a complete analysis of AXIS BANK's quarterly results.

Union Bank of India Swings to Profit as Asset Quality Improves (Views On News)

Jun 8, 2021

Union Bank's share price up 2% post March quarter earnings.

PNB Reports Profit in March Quarter After Three-Way Amalgamation (Views On News)

Jun 8, 2021

Shares of PNB fell over 2% yesterday despite healthy quarterly results.

Bank of Baroda Shares Plunge 5% After Reporting Huge Loss (Views On News)

May 31, 2021

The stock fell after the bank posted a loss due to higher tax expenses.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 18, 2021 (Close)


  • Track your investment in AXIS BANK with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks