UTI Bank's strong growth in FY03 continues. For 2QFY03 the bank reported a significant 43% profit growth led by 34% growth in interest income. Higher growth in earnings was achieved despite a 40% hike in provisions for non-performing assets.
Income from operations
Net interest income
Operating Profit Margin (%)
Provisions and contingencies
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (m)
Diluted Earnings per share*
The bank's core interest income recorded a very strong growth of 59% during the quarter largely due to the rise in disbursals by the bank. The net interest income of UTI Bank saw a sharp growth of 80% during the quarter. The growth has been driven by a 50% surge in advances (up from Rs 44.6 bn in September last year to Rs 67.1 bn). An increase in other income too aided pre-tax profit growth.
Interest income break-up
Interest on advances
Income on investments
Interest on balance with RBI
UTI Bank's retail initiatives continue to aid its performance. The savings bank (SB) deposit base grew by over 59% YoY to Rs 10.9 bn as on 30th September '02. The SB customer accounts grew significantly from 400,565 to 720,064 during the same period, a growth of 80% YoY. The retail asset base has grown over 144% to Rs 7 bn YoY. The bank has identified housing and personal loans as key focus areas.
While retail banking's contribution to total revenues increased from 9% in 2QFY02 to 14.5% in the September quarter this year due to a huge 300% surge in retail banking revenues, the PBIT from this segment was negative and proved to be a drag on overall profitability. Though corporate banking share in revenues dipped from 51% levels to 48.5% in 2QFY03, the segment's share in profits expanded significantly to 92% of total PBIT.
Revenue pie break-up
At the current market price of Rs 38, UTI Bank is trading at a P/E of 4.5x 1HFY03 annualised earnings and adjusted price to book value ratio of 1.5x. The bank's aggressive expansion has reduced its capital adequacy ratio to 9.7% as on September 2002 from 10.7% in March 2002. The bank has appointed Saloman Smith Barney to raise funds to improve its capital adequacy ratio.
Axis Bank declared the results for the third quarter of the financial year ended March 2017 (3QFY17). The bank has reported 4.1% YoY growth in net interest income while net profits declined 73.4% YoY in 3QFY17.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407