Stated IDBI in a release: "The decline in net profit was mainly due to lower gains on sale of investments which stood at Rs 3.96 crore (Rs 80.02 crore) due to depressed state of capital market."

Net profit for the second quarter of this year stood at Rs 165 crore (Rs 205 crore), whereas gross profit stood at Rs 234 crore (Rs 312 crore). "The slowdown of the economy had impacted the income and profitability of the bank during the year," IDBI said in a statement.

Total income remains almost same at Rs 3,969 crore (Rs 3,930 crore), while total expenditure rose to Rs 3,430 crore (Rs 3,266 crore). Assistance sanctioned under all categories grew by 5.3 per cent to Rs 14,755 crore (Rs 14,007 crore), and disbursement increased by 5.6 per cent to Rs 7,943 crore (Rs 7,518 crore). The share of electricity generation (29.7 per cent) was recorded as the highest in the overall assistance sanctioned in the industry.

Sanctions under direct finance grew by 5.2 per cent to Rs 13,986 crore (Rs 13,249 crore). Disbursement increased by 5.6 per cent to Rs 7,109 crore during the same period.

Total borrowings aggregated to Rs 5,290 crore. Total rupee borrowings stood at Rs 4,801 crore. This comprises mainly "certificates of deposits" (Rs 1,439 crore) and `Omni bonds' (Rs 2,869 crore). The cost of incremental rupee borrowings declined by 115 basis points to 11.25 per cent from 12.4 per cent.

During this six-month period, IDBI said that it had given more attention to the infrastructure sector as the major avenue for its funds. Direct assistance to infrastructure constituents accounted for over 40 per cent sanctions under direct finance. Disbursements of direct assistance to infrastructure projects increased by 81.5 per cent to Rs 1,704 crore during the same period.