IDBI Bank (IDBI) Q4 05/06 earnings summary

Executive summary

• Completed the first year of integration following the April 2005 amalgamation; expanded commercial and development banking while pursuing retail growth and project finance.

• FY05/06 business growth was 30.1%; assets rose 8.9% to Rs.88,564.8 crore, deposits increased 72.2% to Rs.26,000.9 crore and advances grew 16.1% to Rs.52,739.1 crore.

• Standalone PAT was Rs.560.9 crore; consolidated PAT was Rs.543.9 crore. Current-year results cover 12 months versus six months in FY04/05, limiting comparison.

Financial highlights

• Standalone gross income was Rs.6,661.2 crore, comprising interest income of Rs.5,380.7 crore and other income of Rs.1,280.4 crore; net income after provisions was Rs.6,448.6 crore.

• Standalone PBT was Rs.588.3 crore and PAT Rs.560.9 crore; consolidated PBT was Rs.580.6 crore and PAT Rs.543.9 crore.

• Interest expense was Rs.5,000.8 crore, 85.3% of reported total expenditure excluding provisions and contingencies; provision before tax was Rs.212.5 crore in the Directors’ Report summary.

• Total assets reached Rs.88,564.8 crore; advances were Rs.52,739.1 crore, investments Rs.25,350.5 crore and outstanding borrowings Rs.47,530.2 crore.

Outlook and guidance

• Target deposits at nearly 50% of total liabilities over the next few years, supported by branch expansion and growth in current and savings accounts.

• FY06/07 network expansion plan is subject to regulatory approval; the network stood at 552 outlets at March 31, 2006.

• Growth priorities include retail and corporate banking, development finance, fee income, third-party distribution, government business and overseas offices.

• Prepare a life-insurance joint venture with Fortis; a third partner and regulatory approvals remained part of the planned process.