— PHOTO: S. SUBRAMANIUM

OWNER'S PRIDE: P. Chidambaram, Union Finance Minister, distributing the Shriram-UTI Bank co-branded credit card to a truck driver in New Delhi on Wednesday. The Chairman, Shriram Group, R. Thyagarajan (left), and CMD, UTI Bank, P. J. Nayak, look on.

NEW DELHI: UTI Bank is likely to raise debt in the overseas market to fund expansion of its operations in Singapore as well as proposed branches in Hong Kong and Dubai and may mop up money in the domestic debt market to meet capital requirements in India.

"We have not taken any decision, but if the requirement is felt we may raise lower Tier I and upper Tier II capital in India to meet capital requirements this fiscal," UTI Chairman and Managing Director, P. J. Nayak, told reporters on the sidelines of the launch of co-branded card for truck operators in association with Shriram Transport Finance Company Ltd.

The bank's advances grew by 60 per cent to Rs. 34,000 crore till December this fiscal. "To maintain 60 per cent growth in advances in this quarter is too high but if we record a growth of 45-50 per cent, we will be on course."

The bank's deposits stood at Rs. 52,000 crore during the first nine months of this fiscal, Mr. Nayak said. To fund the expansion of its Singapore branch, the bank might further raise debt through medium term notes in overseas market, he said. Besides, the bank was going to open a branch in Hong Kong next month and in Dubai in April, he said.

The bank had already raised $500 million out of the $1.2 billion medium term notes programme.

It mopped up $250 million in the overseas market in January.

The card is the first of its kind for small truck operators, which will help them buy fuel and vehicle parts through plastic money. Mr. Nayak expressed the hope that one lakh cards would be sold within a year.

PTI

Printer friendly page  
Send this article to Friends by E-Mail