Mumbai, Oct. 30: Industrial Development Bank of India (IDBI), the term lending institution desperately seeking a makeover into a universal bank, has reported a 355 per cent jump in net profit at Rs 115 crore for the quarter ended September 30, aided primarily by softening interest rates.
Its operations during the period under review has resulted in profit before provisions, depreciation and tax of Rs 507 crore compared with Rs 244 crore during the corresponding quarter of the previous fiscal, a growth of 108 per cent. This represents a rise of 179 per cent over the preceding quarter’s (April-June 2002) figure of Rs.182 crore.
The company’s profit before tax stands at Rs 114 crore. After making a provision of Rs 7 crore towards taxation for the quarter and adding back deferred tax credit of Rs 8 crore, profit after tax (PAT) amounts to Rs.115 crore. The profit after tax for the quarter is higher by 355 per cent compared with the corresponding period of last year (Rs 25 crore).
Total income during the current quarter increased 7.5 per cent at Rs 2,070 crore compared with Rs 1,926 crore earned in the comparable quarter of the previous financial year.
IDBI said its efforts to pare down overheads has finally paid off with the total expenditure at Rs 1,564 crore. It reflects a saving of Rs 118 crore from July-September 2001 levels (Rs 1,682 crore).
For the half-year ended September 2002, total income stood at Rs 3,754 crore while total expenditure aggregated Rs 3,066 crore. Profit after tax during the first half of fiscal 2003 amounted to Rs 152 crore.
Aggregate assets as on September 30, 2002, stood at Rs. 65,417 crore. Aggregate sanctions and disbursements during the half-year period stood at Rs 754 crore and Rs 1257 crore respectively.
IDBI’s maintained its focus on the infrastructure sector with 27 per cent and 26 per cent of total sanctions and disbursements in this sector. The bank continued to be deliberately selective about fresh assistance, keeping overall asset quality of portfolio in view.
Borrowing rates slashed
IDBI has cut the borrowing rates by 25 to 50 basis points for its various schemes in response to the RBI’s reduction in bank rate. “Except for the Suvidha Fixed Deposits Scheme, reduction in rates of other schemes will come into effect from November 1,” IDBI chairman and managing director P. P. Vora said. For the Suvidha scheme the rate would be effective from November 15 onwards.