IDBI Bank Q1 Net Dips 39% To Rs 11.2 Cr

Mumbai, July 30: | Updated: Jul 31 2002, 05:30am hrs
IDBI Bank on Tuesday reported a 38.85 per cent drop in net profit to Rs 11.14 crore in the quarter ended June 30, 2002 as compared to Rs 18.22 crore in the same period last year.

At the same time its operation profits too fell 32.3 per cent to Rs 31.40 crore (Rs 46.33 crore). The bank also said that despite interest and firm commitments by reputed private equity investors to invest in the bank, the decision of the parent IDBI, on signing the customary shareholders agreement, is awaited.

However, the bank will seek to raise capital in the next 90 days to continue its pursuit of growth, quality and sustained profitability.

Sources in the bank said that “the deal is expected to go through within this period and the bank will get the much needed funds. However, if for some reason it is delayed, we may look at raising Tier-2 capital or even Tier-1. But nothing concrete has been discussed on the second option.” The bank’s total income during the quarter grew 5.20 per cent to Rs 172.86 as against Rs 164.31 crore in the same period the previous year despite a 68 per cent decline in money market income to Rs 9.8 crore (Rs 31 crore).

The total expenditure, excluding provisions and contingencies, was at Rs 141.45 crore as compared to Rs 117.98 crore last year in the same period.

The bank made a provision for taxes of Rs 6.49 crore (Rs 12.11 crore). The interest earned stood at Rs 141.45 crore (Rs 119.45 crore).

The paid-up equity share capital was Rs 140.05 (Rs 140.00 crore).

Being constrained by its capital adequacy of 9.04 per cent, the bank’s balance sheet grew only by 2.5 per cent from March 31, 2002, even as it grew by 35 per cent to Rs 6,795 crore as on June 30, 2002 compared to the previous year (June 30, 2001). The bank’s total customer assets increased by over 46 per cent to Rs 4,302 crore as compared to Rs 2,949 crore in the last fiscal.

The bank has been able to reduce its daily average cost of deposits by another 60 basis points during the quarter to 6.4 per cent.

During the quarter, the bank has focused its growth in retail assets led home loans and quality corporate assets. The bank’s net non-performing assets (NPAs) was at 1.76 per cent.