IDBI Bank (IDBI) Q4 00/01 earnings summary

Executive summary

• FY01 profit before tax fell to ₹7,340m from ₹10,270m; profit after tax was ₹6,910m versus ₹9,470m. A ₹3,600m capital gain from SIDBI divestment was booked in FY01.

• Total sanctions rose 6.5% to ₹287,111m and disbursements rose 2.6% to ₹174,983m; outstanding assistance declined to ₹628,795m from ₹645,850m.

• FY02 priorities included growing business volume, preserving asset quality, expanding non-project and fee-based services, and financing infrastructure and selected growth sectors.

Financial highlights

• Total income was ₹78,348m versus ₹78,596m; gross operating income reached ₹88,279m versus ₹86,337m, while provisions and write-offs rose to ₹9,931m from ₹7,741m.

• Total expenses increased 3.9% to ₹71,008m; interest and other financial expenses were ₹67,241m, or 95% of expenses.

• Total assets were ₹717,834m versus ₹722,854m; net worth rose to ₹91,266m from ₹90,252m.

• Capital gains on investment sales were ₹5,351m versus ₹3,821m; lending interest and discount income eased to ₹61,914m from ₹62,245m.

Outlook and guidance

• FY02 business prospects were expected to be favorable; GDP growth was projected near 6%, with efforts focused on business growth and maintaining asset quality.

• Expected financing opportunities included infrastructure, IT, pharmaceuticals, selected consumer goods, agro-based and food-processing industries, and textile technology upgrades.

• Lower interest rates, policy reforms, export momentum and infrastructure investment were expected to support demand; subdued industrial activity and investment warranted caution.

• Planned priorities included short-term and working-capital finance, investments in shares and debentures, secondary-market operations, fee-based income and non-fund-based services.