A utility tool, such a putty knife, includes an elongated handle for manual handling of the utility tool, a blade and a screw bit mechanism. The handle extends substantially along a longitudinal axis, and has front and rear portions. The blade has an anchoring portion anchored within the handle and an operating portion extending out from the front portion of the handle. The screw bit mechanism is rotatably mounted about the rear portion of the handle, has a screw bit, and is operable between a non-operating configuration where the screw bit is nested within the handle, and an operating configuration where the screw bit is drawn out of the handle and securely maintained in a fixed configuration so as to be positioned at a slanted angle with respect to the longitudinal axis of the handle. In addition to being able to carry out other various functions, in drywall applications and the like, the tool by virtue of its design and components enables a more ergonomic grip, and to have a greater lever effect for screwing fasteners with its screw bit mechanism.