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UTI Bank Limited (UTI)

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Friday 24 November, 2006

UTI Bank Limited

Issue of Debt

UTI Bank Limited
24 November 2006



   ALLOTMENT OF UPPER TIER II UNSECURED REDEEMABLE SUBORDINATED DEBENTURES ON
                            PRIVATE PLACEMENT BASIS


We are pleased to inform that the Board of Directors of the Bank have passed a
resolution approving Allotment of Upper Tier II Unsecured Redeemable
Subordinated Debentures to various investors on private placement basis as the
Bank's Tier II capital aggregating to Rs. 200 crores. The Debentures are issued
as per term sheet enclosed.



The Debentures will be listed on The Bombay Stock Exchange (BSE) and The
National Stock Exchange (NSE) in India.



TERM SHEET

Addendum to Shelf Information Memorandum Dt.: 14 September, 2006


Name of the Issuer              UTI Bank Ltd.

Amount to be raised             Rs. 200 crores with an option to retain oversubscription

Instrument                      Upper Tier II Unsecured Redeemable Subordinated Debentures

Instrument Form                 Only in Demat mode

Face Value                      Rs. 10,00,000 (Rupees Ten Lakhs) per Debenture

Issue price                     Rs.10,00,000 per Debenture (at par)

Rating                          'LAA' by ICRA
                                'AA (ind)' by FITCH

Coupon Rate                     9.35% p.a.

Coupon Payment                  Annually

Redemption                      15 years from Deemed Date of Allotment
                                Upper Tier II instruments shall not be redeemable at the
                                initiative of the holder. All redemptions shall be made only
                                with the prior approval of the RBI.
                                No. Put Option. The Bank shall have an option for redemption
                                'i.e. Call Option' to redeem the Bonds at par at the end of

Put / Call Option               10th Year from the Deemed Date of Allotment (exercisable only
                                with RBI approval)

Step up of coupon               50 bps over and above coupon rate of 9.35% i.e. 9.85% p.a.
                                annually if the call option is not exercised by the Bank.


Day Count basis                 Interest payable on the Debentures will be calculated on the
                                basis of actual number of days elapsed in a year of 365 or
                                366 Days as the case may be

Interest on Application Money   Interest on application money will be same as the Coupon rate
                                (subject to deduction of Tax at Source at the rate prevailing
                                from time to time under the provisions of the Income Tax Act,
                                1961 or any other statutory modifications or re-enactment
                                thereof) will be paid on application money to the applicants
                                from the date of realisation but excluding the Deemed Date of
                                Allotment.  This will be paid within 7 days from Deemed Date
                                of Allotment.

Record Date                     In case of exercise of Call Option record date shall be 10
                                working days prior to date of call option.

Listing                         The Debentures being offered shall be listed on Bombay Stock
                                Exchange Limited (BSE) and National Stock Exchange of India
                                Ltd. (NSE).

Minimum Application Size        1 Debenture and in multiples of 1 Debenture thereafter

Market Lot                      1 and in multiples of 1 thereafter

Debenture Trustees             The Western India Trustee & Executor Co. Limited

Registrar & Transfer Agents    Karvy Computershare Pvt. Ltd.

Arrangers                      Citibank N.A., Barclays Bank., Allianze Securities Ltd





Issue Schedule :
Issue Opening Date(*)           13 November, 2006

Issue Closing Date (*)          22 November, 2006

Deemed Date of Allotment(*)     24  November, 2006


(*) The issuer reserves the right to change the issue timetable including the
Deemed Date of Allotment at its sole discretion, without giving any reasons or
prior notice.



In terms of RBI circular no. DBOD.No.BP.BC.57/21.01.2002/ 2005-2006 dated
January 25, 2006, on enhancement of banks' capital-raising options covering
norms for raising of instruments eligible for inclusion under Upper Tier-II
capital, these Bonds shall be subjected to a lock-in clause in terms of which
the Bank shall not be liable to pay interest if (a) the Bank's CRAR is below the
minimum regulatory requirement prescribed by RBI or (b) the impact of such
payment results in Bank's Capital to Risk Assets Ratio (CRAR) falling below or
remaining below the minimum regulatory requirement prescribed by the RBI.
However, the Bank may pay interest with the prior approval of RBI when the
impact of such payment may result in net loss or increase the net loss provided
CRAR remains above the regulatory norm. The interest amount due and remaining
unpaid may be allowed to be paid in the later years subject to the Bank
complying with the above regulatory requirement.








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