IDBI Bank (IDBI) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sanctions rose 6.6% YoY to ₹25,554.6 crore; disbursements fell to ₹14,403.4 crore from ₹15,170 crore.

• PAT was ₹1,258.9 crore vs ₹1,501.3 crore; a 45% dividend on equity was recommended, unchanged YoY.

Financial highlights

• Total income reached ₹7,464.4 crore vs ₹6,931.6 crore; total expenses increased to ₹6,163.7 crore from ₹5,131.3 crore.

• PBT was ₹1,300.7 crore vs ₹1,800.3 crore; PAT included a ₹33.2 crore write-back of prior-year excess income-tax provision, with net tax provision of ₹41.8 crore.

• Gross operating income was ₹7,775.3 crore; provisions and write-offs rose to ₹310.9 crore from ₹167 crore.

• Total assets grew 15.3% to ₹69,143.5 crore; outstanding assistance rose 11.2% to ₹60,888 crore.

Outlook and guidance

• FY1999-2000 assistance demand was expected to improve as industrial slowdown appeared to have bottomed out; lower rates and comfortable liquidity were viewed as supportive.

• Priorities included infrastructure, IT, pharmaceuticals and food processing; fund-based lending remained core, with greater emphasis on well-rated borrowers, structured products and fee-based services.