The net profit of the bank rose to Rs 19.49 crore during the first half as against Rs 9.40 crore in the corresponding period last year. Total income rose to Rs 201.84 crore from Rs 142.30 crore in the previous year.

The interest income in the first-half increased by 37.60 per cent to Rs 177.67 crore from Rs 129.12 crore last year. Other income, which mostly came from fee-based sources rose by 83 per cent to Rs 24.17 crore as compared to Rs 13.18 crore in the first-half of last year.

IDBI Bank Chairman MS Verma on Thursday said that the emphasis during the second-half of 1999-2000 will continue to be on fee-based business, which constituted 12 per cent of the bank's total income.

"Our target is to raise this figure to 15 per cent by the end of the current financial year. With introduction of technology-based products the share of fee-based income in the aggregate income should touch 20 per cent," said Verma.

Verma stated that IDBI Bank will lay stress on lending to small and medium enterprises, since the top-end corporates are borrowing at 12.50 per cent prime lending rate (PLR) or raising finance at economical rates through other instruments.

"We would prefer to lend to companies, whose credit quality is not inferior. We can notice that some of the problems attached to small-scale lending have been removed," the IDBI Bank chief said.

On the future plans for the bank, Verma revealed that IDBI Bank would foray into internet banking, smart cards and private banking. He further said that IDBI Bank was one of the few that is working to establish a disaster recovery management plan, that will enable the bank to continue operations in any eventuality.

The IDBI Bank plans to expand its branch network to 40 by the end of this year. Currently, the bank has 28 branches. Plans have been crystallised to install 20 off-site ATMs across the country during 1999.