Furthermore it has implemented Finacle, the banking software of Infosys and is also offering net banking and phone banking like its private sector peers. Thus in terms of technology and technology related products it is second to none. Asset quality has improved but still remains high. Though the trend is encouraging this is still much higher than peers. Further, to safeguard asset quality the bank seems to have compromised in terms of interest spread by lending to higher rated clients only and by increasingly turning to investments.
Future looks bright.
The new private sector banks should continue gaining marketshare from their PSU counterparts due to focus on technology and superior service. UTI Bank is well posed to capitalise on this trend. Also, its new initiatives should continue to increase yield higher than industry growth rates. Valuation is very attractive. Whilst considering the information to be reliable we take no responsibility for individual investment decision based thereon.