The Hindu Business Line : IDBI net profit at Rs 109 cr

IDBI Ltd has reported a net profit of Rs 109 crore for the quarter ended June 30, 2005 against Rs 307.26 crore for the six-month period ended March 2005.

The financial result of the first quarter of 2005-06 is not comparable with that of the corresponding quarter last year as the amalgamation of IDBI Bank with IDBI was effective from October 1, 2004.

Mr V.P. Shetty, Chairman of IDBI, attributed the profit to growth in advances in the last couple of months and sanctions made in the past that came up for disbursal now. "There has been credit deployment and some amount of refinancing," he said.

Total income for the first quarter of 2005-06 was Rs 1,600.68 crore (Rs 3,282.85 crore). Net interest income was Rs 90.65 crore (Rs 187.85 crore).

Capital Adequacy Ratio was 16.2 per cent (15.5 per cent). Net NPA was 1.51 per cent (1.74 per cent).

Deposits were at Rs 16,851 core (Rs 15,003 crore), while borrowings were at Rs 49,622 crore (Rs 50,000 crore).

Cost of funds moved down to 7.14 per cent due to a combination of renewed emphasis on reducing interest expenses and access to low-cost deposits, post merger of IDBI Bank with IDBI.

For the current fiscal, IDBI hopes to see a balanced growth from its retail operations, which has been consistently growing at 50 per cent, as well as project financing, which is one of the bank's core strengths, Mr Shetty said.

Regarding overseas operations, IDBI is looking at countries like Singapore, which is a favoured destination among Indian banks and the Gulf, because of the NRI population. "We do feel handicapped to some extent due to lack of an overseas office. But our special team set up for overseas expansion is working on that," he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Insurance service cells

Yuan revaluation — How much is it really worth for US?

IDBI net profit at Rs 109 cr

IndusInd Bank Q1 net drops to Rs 40 crore

KSFE to sell National Insurance products

Bajaj Allianz gears up for claims deluge

Data back-up centres to the rescue of financial sector

Banks stay away from fresh purchases

SBBJ hopes to achieve Rs 40,000-cr business

Ten-year bonds should stay in 6.75-7 pc range

Reliance Life buys AMP Sanmar

Banks, stock markets to remain open in Mumbai despite rains