IDBI Bank (IDBI) Q4 96/97 earnings summary

Executive summary

• FY1996-97 profit before tax rose 13.2% to Rs.1,482.3 crore; reported profit after tax rose 13.6% to Rs.1,144.2 crore.

• Total assistance sanctions declined 4.2% to Rs.17,049.9 crore, while disbursements increased 7% to Rs.11,439 crore.

• Outstanding assistance rose 17.3% to Rs.43,768.6 crore at March 31, 1997; total assets increased 13.4% to Rs.50,328.9 crore.

• A 35% equity dividend was proposed for FY1996-97, aggregating Rs.235.6 crore.

Financial highlights

• Total income grew 20.2% to Rs.5,963.8 crore; interest and discount income was Rs.5,058.4 crore, or 84.8% of total income.

• Total expenses increased 22.7% to Rs.4,481.5 crore; interest and other financial expenses rose 22.1% to Rs.4,215.4 crore.

• PBT rose 13.2% to Rs.1,482.3 crore; reported PAT rose 13.6% to Rs.1,144.2 crore, including prior-year tax write-back of Rs.24.9 crore and Rs.38 crore lease equalisation adjustment.

• Excluding those items, effective PAT increased 13.2% to Rs.1,081.3 crore from Rs.955.5 crore.

• Leasing income increased 54.6% to Rs.190.7 crore; fee-based income declined to Rs.17.4 crore from Rs.22.6 crore.

Outlook and guidance

• Power and telecom projects in the pipeline, with policy bottlenecks largely resolved, were expected to lift sanctions in those sectors in the ensuing year.

• IDBI Mutual Fund planned several new schemes in 1997-98 as capital-market conditions improved.

• Implementation of Booz Allen & Hamilton recommendations was underway in phases, targeting wholesale banking, operating performance, delivery processes and IT.