The Hindu Business Line : IDBI net up 39 pc on increase in revenues

Performance
Net profit increased by 39 per cent to Rs 150.57 crore.Net interest income- Rs 97.17 crore.
Other income Rs 284.61 crore.
Deposits increased by 73 per cent to Rs 29,096 crore.Advances up by over 10 per cent to Rs 52,637 crore.
Cost of funds - 6.61 per cent.

Mumbai , July 19

IDBI Ltd has posted a 39 per cent increase in its net profit at Rs 150.57 crore for the quarter ended June 30, 2006, against Rs 108.51 crore in the corresponding quarter last year, due to increase in revenues.

Total income for the period increased by Rs 1,668.34 crore (Rs 1,600.68 crore). Total expenditure was Rs 1,476.47 crore (Rs 1,442.28 crore).

Deposits increased by 73 per cent to Rs 29,096 crore (Rs 16,851 crore). Low-cost current account and savings account deposits now account for 26 per cent of total deposits.

"The huge growth in deposits is because of the low base," said Mr V.P. Shetty, Chairman and Managing Director, IDBI Ltd.

Advances increased by over 10 per cent to Rs 52,637 crore (Rs 47,639 crore). "Most of our advances were for term lending and project finances. While we have huge sanctions, the disbursements will happen based on project implementation," Mr Shetty said.

As the increase in deposits was also accompanied by reduction in borrowing, the bank managed to reduce the cost of funds. Capital adequacy ratio was 14 per cent (16.2 per cent).

The percentage of net non-performing assets to total assets was 1.02 per cent (1.51 per cent). Sustained recovery efforts during the quarter saw IDBI's sticky assets declined by Rs 98 crore.

Retail assets surged to Rs 9,270 crore (Rs 8,612 crore). Retail assets now constitute over 18 per cent of total advances against 16 per cent last year.

Profit from sale of investments went up by 22 per cent to Rs 148 crore (Rs 121 crore) and accounted for 52 per cent of other income. Investment portfolio of the bank as on June-end 2006 stood at Rs 27,243 crore (Rs 24,357 crore).

"We have sold our equity investments whenever we felt need to unlock value," Mr Shetty said.

Shares ended at Rs 49.20 against the previous close of Rs 49.80 on BSE.

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