IDBI Bank (IDBI) Q4 04/05 earnings summary

Executive summary

• First reporting period covered Oct 1, 2004–Mar 31, 2005; results reflect the merger of IDBI Bank Ltd. into IDBI Ltd. from the appointed accounting date of Oct 1, 2004.

• The six-month period produced standalone PAT of ₹307.3 crore; the merger was positioned to add scale, lower funding costs and broaden retail reach.

Financial highlights

• Standalone total income after provisions was ₹3,210.3 crore; total expenses were ₹2,921.8 crore, PBT ₹288.5 crore and PAT ₹307.3 crore.

• Gross income was ₹3,282.8 crore, including interest income of ₹2,655.7 crore and other income of ₹627.1 crore; ₹72.5 crore was provided for bad and doubtful debts and investments.

• Consolidated income was ₹3,352.45 crore and consolidated PAT ₹318.57 crore for the six months ended Mar 31, 2005.

• Standalone total assets were ₹81,360.2 crore at Mar 31, 2005; advances were ₹45,413.5 crore and investments ₹25,054.7 crore.

Outlook and guidance

• Priorities included corporate and retail finance alongside continued development financing; corporate funding to favor highly rated borrowers and fee-generating structured products.

• Retail growth, innovative services, cost optimization, strong processes and risk management were identified as growth and competitiveness priorities.

• Merger synergies and access to lower-cost short-term retail deposits were expected to support expense reduction, attractive pricing and improved asset quality.