UTI Bank plans private placement - 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 plans private placement

Mar 7, 2000

UTI Bank is planning on raising Rs 1 bn of tier II capital via the private placement market. This is UTI Bank's first tier II capital issue and will increase its capital adequacy ratio from 11.64% as on 31st March'1999 to 12% by March'2000. The issue size is Rs 750 m with a green shoe option of Rs 250 m. The maturity for these tier II bonds will be a maximum of 90 months and the coupon rate will be decided by a book building process. The increase in capital adequacy is necessary for the bank as it needs the funds for its aggressive expansion plans and technology.

UTI Bank plans to increase its branch network from 45 currently to more than 100 branches in the next 18 months, and they have applied to RBI for the licenses of these branches. It also has plans of installing 200 more ATMs to its existing 59 ATMs.

UTI Bank has also recently announced its internet plans and it is in the final stages of tying up with Global Telesystems for its payment gateway to enable its e-commerce transactions. Earlier when the bank announced its internet plans there was no mention of a payment gateway.

The other two banks to have launched internet banking are HDFC Bank and ICICI Bank. HDFC Bank has recently announced its tie-up for a payment gateway with Singapore Telecom for its e-commerce activities. ICICI Bank has entered into a joint venture with Satyam Infoway for the online distribution of retail banking products on the internet.

This aggressive stance of UTI Bank of branch expansion, internet can be seen as its aim to get over from the public sector stodgy image into a proactive private sector bank.

Market View:
UTI Bank has not been viewed favourably by the market as it has been promoted by a public institution. However it is trying to change this image by being aggressive on the technology front like other private sector banks. If it successful in its attempt to change itself the stock market could re-rate the bank.

Equitymaster requests your view! Post a comment on "UTI Bank plans private placement". Click here!


More Views on News

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.

AXIS BANK Announces Quarterly Results (4QFY20); Net Profit Down 192.2% (Quarterly Result Update)

Apr 30, 2020 | Updated on Apr 30, 2020

For the quarter ended March 2020, AXIS BANK has posted a net profit of Rs 14 bn (down 192.2% YoY). Sales on the other hand came in at Rs 162 bn (up 9.7% YoY). Read on for a complete analysis of AXIS BANK's quarterly results.

How the YES Bank Collapse Unfolded - 10 Points (Sector Info)

Mar 9, 2020

A timeline of how YES Bank went from a stock market darling to a pariah.

Today's Stock Market Crash: 10 Points (Sector Info)

Mar 6, 2020

Top factors that dragged the markets lower today.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 25, 2020 (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