IDBI Bank (IDBI) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 sanctions rose 19.2% YoY to Rs 28,308 crore and disbursements rose 17.9% to Rs 17,059 crore; PAT fell to Rs 947 crore from Rs 1,258.9 crore.

• Higher provisions for bad and doubtful assets, weaker net lending interest income and increased financial costs weighed on profitability.

Financial highlights

• Total income rose to Rs 7,859.6 crore from Rs 7,464.4 crore; PBT fell to Rs 1,027 crore from Rs 1,300.7 crore and PAT to Rs 947 crore from Rs 1,258.9 crore.

• Provisions/write-offs for bad and doubtful assets increased to Rs 774.1 crore from Rs 310.9 crore; net lending interest and discount income declined 2% to Rs 6,224.5 crore.

• Capital gains rose to Rs 382.1 crore from Rs 62.2 crore; fees and commissions increased to Rs 270.3 crore from Rs 212.9 crore.

• Total assets reached Rs 72,169.1 crore, up 4.4% YoY; outstanding assistance, including leased assets, increased 6.1% to Rs 64,585 crore.

Outlook and guidance

• Industrial recovery was expected to strengthen in FY2000-01; infrastructure remained a priority, alongside higher support for IT, pharmaceuticals, biotechnology, communications and entertainment.

• Planned emphasis on non-project finance and tailored products for well-rated corporates, alongside expanded equity participation, advisory, syndication, trusteeship and forex services.

• A more favorable investment climate was anticipated, supported by budgeted 7% GDP growth, stronger markets, infrastructure and IT investment, and softer interest rates.