IDBI Bank (IDBI) Q4 02/03 earnings summary

Executive summary

• FY02-03 PBT rose to Rs.455.61 crore from Rs.414.91 crore; PAT declined to Rs.401.41 crore from Rs.424.28 crore, including a Rs.38.16 crore deferred tax credit.

• Sluggish investment and project-finance demand weighed on operations; assistance sanctioned fell to Rs.2,889 crore while disbursements were Rs.3,924 crore.

Financial highlights

• Gross operating income was Rs.7,481 crore vs Rs.7,948 crore; after Rs.1,110 crore of provisions/write-offs, net income was Rs.6,371 crore vs Rs.7,176 crore.

• Total expenditure fell to Rs.5,915 crore from Rs.6,761 crore; interest expense declined 13.1% to Rs.5,434 crore.

• Capital gains were Rs.420 crore vs Rs.278 crore; commission and brokerage income fell to Rs.73 crore from Rs.130 crore.

• Consolidated revenue was Rs.7,425 crore vs Rs.8,165 crore; consolidated PAT was Rs.543.48 crore vs Rs.667.72 crore.

• Recommended dividend: 15% of equity capital, or Rs.1.50 per share; EPS was Rs.6.15 vs Rs.6.50.

Outlook and guidance

• Proposed conversion into a Companies Act entity able to undertake commercial banking; the repeal bill was under review by the Parliamentary Standing Committee on Finance.

• Commercial banking was positioned as a route to diversify beyond industrial lending, expand retail reach, raise lower-cost funds and broaden assets; technology capability and critical scale were identified as priorities.