The Hindu Business Line : IDBI Bank Q4 net more than doubles

DESPITE reduction in trading income, increased retail loans and lower cost of funds have helped IDBI Bank post a 129 per cent jump in net profit for the quarter ended March 2004 to Rs 37.6 crore up from Rs 16.4 crore in the corresponding period of the previous year. The board of directors has declared a dividend of Rs 1.25 per share, with the total outgo from the bank pegged at Rs 30 crore.

For the full year ended March 2004, the bank has grown its net profit figure by 86.3 per cent to Rs 132.5 crore (Rs 71.1 crore).

For the fourth quarter, net interest income increased by 70 per cent to Rs 99.7 crore (Rs 58.6 crore). Fee income increased by 49.3 per cent to Rs 53.9 crore (Rs 36.1 crore) even as trading fees from the government securities markets reduced by 126.7 per cent to Rs - 2 crore (Rs 7.5 crore).

Total income increased by 48.5 per cent to Rs 151.6 crore (Rs 102.1 crore). Operating costs increased by 20 per cent to Rs 72.0 crore (Rs 59.7 crore).

Net interest margin for FY 04 was at 3.1 per cent (2.7 per cent) and average cost of deposits decreased to 4.1 per cent (5.9 per cent).

On expansion plans, Mr G.V. Nageshwar Rao, Managing Director, IDBI Bank said, "We plan to open 28 new branches across the country to increase the distribution by 30 per cent. We have adopted a mixed strategy in which we will increase our density in metros and also establish presence in new Tier III markets."

The bank has a capital adequacy ratio of 10.4 per cent as at March 2004 after a Rs 155 crore rights issue and a Rs 130 crore tier II bond issue in the fiscal.

For the full year, the total deposits grew by 67 per cent to Rs 10,000 crore with 40 per cent of it being low-cost current and savings accounts, up from 35 per cent in the previous year.

The total assets grew by 64 per cent to Rs 13,000 crore. Retail assets grew by 112 per cent to Rs 3,413 crore, with housing loans being the major growth driver constituting 87 per cent of the retail book. Corporate assets, mostly working capital loans to top rated corporates, grew by 46 per cent to Rs 4,728 crore. Retail now constitutes 40 per cent of the asset book and corporate 60 per cent.

On 90 days overdue basis, the bank has net NPA/customer assets of 0.2 per cent, which is amongst the lowest in the banking industry. The provision cover is over 90 per cent while the industry average is 60 per cent.

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