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UTI Bank Limited (UTI)

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Tuesday 06 February, 2007

UTI Bank Limited

Issue of Debt

UTI Bank Limited
06 February 2007

   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 has passed a
resolution approving Allotment of Upper Tier II Unsecured Redeemable
Subordinated Debentures to various investors on private placement basis as the
Bank's Upper Tier II capital aggregating to Rs. 107.50 crores (inclusive of
oversubscription of Rs. 7.50 crores). The Debentures are issued as per term
sheet enclosed.



                              UTI BANK LIMITED

                    TERM SHEET  dated: 19th January, 2007
       Addendum to Shelf Information Memorandum Dt.: 14 September, 2006


Name of the Issuer              UTI Bank Ltd.

Amount to be raised             Rs. 100 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                     9.50% 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               100 bps over and above coupon rate of 9.50% i.e. 10.50% 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        10 Debenture and in multiples of 1 Debenture thereafter

Debenture Trustees             The Western India Trustee & Executor Co. Limited

Registrar & Transfer Agents    Karvy Computershare Pvt. Ltd.


Issue Schedule:

Issue Opening Date(*)           30th December, 2006

Issue Closing Date (*)          31st January, 2007

Deemed Date of Allotment(*)     6th February, 2007


(*) 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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