UTI Bank clears 250 mn GDR issue

The UTI Bank board on Monday approved a proposal to raise capital aggregating $200-250 million through a global depository receipts (GDR) issue. The board also finalised the induction of more directors. Consequently, two independent directors — UTI Asset Management Company chairman R.H. Patil and marketing consultant Rama Bijapurkar — and LIC’s RBL Vaish would now join the UTI Bank board. S. Chatterjee, the bank’s executive director, has also been inducted as a wholetime director on the board.

The bank’s GDR issue is likely to hit the market in March. An EGM of the shareholders is now slated for Feb. 18 to approve the GDR issue. The decision to go in for a GDR issue is significant as the government shareholders were understood to have had reservations earlier, as it would bring down the government’s aggregate holding in the bank, which now stands at 53 per cent. The fresh capital will be used to boost its CAR.

The bank posted a growth of 35.12 per cent in its net profit to Rs 101.15 crore for the quarter ended Dec. 31, 2004 as against Rs 74.86 crore in the same quarter of the preceding fiscal.