IDBI Q4 net up 6 pc, frowth of Rs 561 crores

Mumbai, Apr 21: A recovery of Rs 1,738 crore from the non-performing accounts(NPAs) coupled with repayment of high cost debt of Rs 12,000 crore in 2005-06, propelled profit growth of the Industrial Development Bank of India (IDBI).

The bank, which underwent a restructuring process in the last 18 months and merged its subsidiary with the parent entity, has posted a growth of 6.35 per cent in net profit to Rs 201 crore in the last quarter of 2005-06, up from Rs 189 crore in the corresponding quarter last year. Its whole year net profit zoomed to Rs 561 crore from Rs 307 crore as on March 31, 2005.

While deposits grew by 72 per cent to Rs 26,000 crore, the advances reported an increse of nearly 16 per cent to Rs 52,518 crore by end-march. The average cost of funds was about 6.83 per cent during the year which was lower than from 7.35 per cent as of March 31, 2005.

The Investment portfolio of IDBI at March-end stood at Rs 25,573 crore as against Rs 25,055 crore as of March-end of 2005.

The gross NPA to gross advances ratio dipped to 2 per cent, while the net NPA was at 1.01 per cent as against the 2.5 per cent and 1.74 per cent respectively as on March 31, 2005.

The bank has a capital adequacry ratio of 14.80 per cent and has no immediate plan to raise the capital.

However, IDBI CMD VP Shetty said they would go for raising another Rs 12,000 crore fund raising programme in the coming months to pay back relatively high cost past deposits, majority in the range of 8 per cent and above interest rates. This, he said, would help the bank to bring down further the cost of funds and lend at the cheaper rates to enhance the business volume in the current year.

Besides, Mr Shetty said, the bank has plans to open 30-odd branches by June-end and another 200 branches in the next one year to expand retail business as well improve the doemstic deposits.

IDBI also is contemplating to open overseas branches at Singapore and Bahrain and a few representative offices in China and south east Asia.

UNI