UTI Bank raises Rs 170 crore

UTI Bank has raised Rs 170 crore (Rs 1.70 billion) through issue of preferential equity to Life Insurance Corporation, CDC and three other investors at a price of Rs 42 per share in the last few months, P J Nayak, chairman, UTI Bank, said on Wednesday.

"We have raised enough capital for the medium term requirement. Our capital adequacy ratio is now 10.9 and it will be maintained at 11 per cent," Nayak said on the sidelines of the launch of ATM sharing network 'MITR', in New Delhi.

He said the bank has issued preferential equity to four private equity funds -- CDC, Citigroup Venture Capital, Chris Capital and Karur Vysya Bank.

While CDC's stake has come down to 20 per cent from 26 in the bank after the issue, Nayak said three other investors -- Citi and Chris Capital picked up 4 per cent each and Karur Vysya Bank bought 1 per cent in UTI Bank.

LIC has increased its holding in UTI Bank to 13 per cent from 7-8 per cent in the last year.

The preferential issue was priced at Rs 42 a share and the bank mopped up Rs 170 crore, Nayak said.

"Our paid-up capital has gone up to Rs 230 crore (Rs 2.30 billion) now from Rs 170 crore in March 2002," he said.

The UTI Bank chief dodged questions about the sale of 33 per cent stake of Unit Trust of India saying, "It was upto the promoters to decide."

He also ruled out any mergers or acquisition at present and said the bank intends to grow organically.

"Our business was growing at 35-45 per cent in the last three years while the net profit was growing at about 45-55 per cent," Nayak said.