The offer due to open on September 21, 1998 is priced at Rs 21 per equity share. It is being made mainly to meet the conditions stipulated by RBI in its license to the bank in February 1994.

Chairman and managing director Supriya Gupta has said that the bank commenced operations with its first branch in Ahmedabad in April 1994. In a short span of four years, 29 branches have been opened, with a further seven branches proposed to be opened during the current year. All branches are fully computerised and networked through V-SATs, besides being accessible through ATMs.

The bank has, over the last four years, recorded an impressive growth in business from an aggregate level of deposits and advances of Rs 712.18 crore as on March 1995 to Rs 4357.85 crore as on March1998, showing a compounded annual growth rate of 82.91 per cent. Deposits at a level of Rs 2730.55 crore (March 1998) has recorded CAGR of 100.47 per cent while advances at a level of Rs 1627.30 crore, a CAGR of 63.37 per cent.

The total income of the bank has grown to Rs 316.50 crore for 1997-98 resulting in a gross profit of Rs 54.56 crore showing CAGR of 78.84 per cent in gross profit over last four years. The net profit (before extraordinary items) of the bank for 1997-98 was Rs 17.61 crore. The bank has a capital adequacy ratio of 9.72 per cent against the RBI requirement of 8 per cent.

UTI Bank is expected to increase its total income to Rs 444.35 crore during the current year resulting in an expected net profit of Rs 31.63 crore.