IDBI Bank (IDBI) Q4 97/98 earnings summary

Executive summary

• FY98 PBT rose 21.5% to Rs 1,800.3 crore; PAT increased 31.2% to Rs 1,501.3 crore. Sanctions grew 41.9% and disbursements 32.6% YoY.

• Directors recommended a 45% equity dividend for FY98, up from 35% in FY97; the proposed payout equates to Rs 4.50 per share.

Financial highlights

• Net income after provisions and write-offs rose 16.2% to Rs 6,931.6 crore; gross operating income increased 17.1% to Rs 7,098.6 crore.

• Total expenses rose 14.5% to Rs 5,131.3 crore; interest and other financial expenses increased 14.4% to Rs 4,823.6 crore.

• Total assets increased 19.1% to Rs 59,957.3 crore as of March 31, 1998; outstanding assistance, including leased assets, grew 15.9% to Rs 54,737 crore.

• Reported PAT includes prior-year tax provision writebacks and a Rs 38 crore earlier-year lease equalisation adjustment; tax provision was Rs 299 crore versus Rs 401 crore in FY97.

Outlook and guidance

• Eight additional subsidiary bank branches were planned for FY99, including locations in Baroda, Mohali, Chennai, Jamshedpur, Mumbai and Goa.

• The proposed FY98 dividend of Rs 4.50 per equity share was submitted for shareholder consideration at the June 1998 AGM.