Business Daily from THE HINDU group of publications
Friday, Jan 18, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Jan 18, 2008 ePaper | Mobile/PDA Version |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks Capital gains from share sale lift IDBI Q3 net 39%
Our Bureau Mumbai, Jan 17 IDBI Ltd has reported a 39-per cent growth in Q3 net profit at Rs 176 crore, against Rs 127 crore in the corresponding quarter of the previous year, buoyed by capital gains through the sale of shares. Mr R.K. Bansal, Chief Financial Officer, IDBI, said the company booked capital gains of Rs 266 crore by selling shares in the third quarter, against just Rs 56 crore in the year-ago- period. “Most of these shares are from restructured loans which were converted into equity shares. Some of these shares are from the Corporate Debt Restructuring mechanism while some of it has come through direct subscription,” Mr Bansal said. The income on investments rose 37 per cent to Rs 358 crore, against Rs 261 crore during the same period. Other income was also up 119 per cent at Rs 394 crore (Rs 180 crore). The net interest income was, however, flat in the third quarter at Rs 213 crore, against Rs 212 crore at the end of December, 06. Margins under pressure
Net interest margin also dipped to 0.92 per cent, from 1.02 per cent in the previous year. The cost of funds in the third quarter climbed to 8.02 per cent (7.19 per cent) and the yield on assets also inched up to 9.33 per cent (7.99 per cent). Mr Bansal said that margins were under pressure as the bulk of the bank’s business comes from corporate lending where the rates have been competitively low. “We are now diversifying our business into other sectors such as retail and small and medium enterprises Retail currently accounts for 20 per cent of the business which we plan to increase to 25 per cent,” he said. IDBI has a branch network of 496 and it has applied for 150-200 fresh licences from the Reserve Bank of India. Overseas forayIt has secured approval from the RBI to set up branches in Singapore, Bahrain and Beijing and is currently awaiting permission from the regulators in these jurisdictions. This will be IDBI’s first foray overseas. IDBI’s deposits increased by 51 per cent to Rs 56,889 crore while advances rose by 13.19 per cent to Rs 68,443 crore. Total income jumped 32 per cent to Rs 2,471 crore (Rs 1,877 crore), while total expenditure was also up 24 per cent at Rs 2,079 crore (Rs 1,674 crore). Gross non-performing assets dipped to 2.24 per cent (2.37) while net non-performing assets fell to 1.19 per cent (1.55). The bank made recoveries of about Rs 185 crore from written-off accounts in the quarter ended December, 07, against Rs 74 crore in the year ago period IDBI’s capital adequacy ratio stood at 13.31 per cent (14.09) and the bank has no immediate plans to raise capital, Mr Bansal said. IDBI raising $1.5 b thru medium term notes Toyota to tread cautiously on India plans IDBI-United Western Bank merger Advantage, branch and rural roots More Stories on : Financial Performance | Public Sector Banks
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