IDBI Bank (IDBI) Q4 01/02 earnings summary

Executive summary

• FY02 results weakened amid industrial slowdown: sanctions fell to ₹16,034 crore from ₹25,418 crore; disbursements fell to ₹11,158 crore from ₹17,474 crore.

• PAT was ₹424.3 crore versus ₹691.0 crore; strategic priorities included asset quality, selective lending, cost reduction, diversification and transition toward universal banking.

Financial highlights

• Total income ₹7,175.8 crore versus ₹7,834.8 crore; total expenses ₹6,760.9 crore versus ₹7,100.8 crore; PBT ₹414.9 crore versus ₹734.0 crore.

• PAT of ₹424.3 crore included a ₹19.4 crore deferred-tax credit; income-tax provision was ₹10 crore.

• Gross operating income ₹7,948.5 crore versus ₹8,827.9 crore; provisions/write-offs charged to income were ₹772.6 crore versus ₹993.1 crore.

• Total assets ₹66,642.6 crore versus ₹71,783.4 crore; net worth ₹8,784.7 crore, including ₹2,130.5 crore of Tier I bonds.

Outlook and guidance

• FY03 outlook described as encouraging, supported by expected recovery in US and European economies, improved exports, agricultural output and infrastructure spending.

• FY03 priorities: improve asset quality and collections, grow business income, reduce borrowing and administrative costs, and contain new NPAs.

• Planned to increase retail funding through Suvidha Fixed Deposits, optimize borrowing cost and maturity, and expand fee-based income.