Idbi Net Up 34% In Q1
The Industrial Development Bank of India (IDBI) has reported a 34.21 per cent rise in net profit for the first quarter ended June 30, 2003 to Rs 51 crore as against Rs 38 crore in the previous fiscal.
The income from operations of the financial institution has reduced marginally by 5.4 per cent to Rs 1,575 crore in the first quarter as against Rs 1,665 crore in the previous fiscal.
The other income showed a rise of 21.05 per cent to Rs 23 crore from Rs 19 crore the previous year. The interest cost of the institution has shown a fall of 17.27 per cent to Rs 1,193 crore as against Rs 1,442 crore the previous fiscal.
The cost of incremental rupee borrowing during the first quarter was at 6.88 per cent per annum, lower by 242 basis points, as against 9.30 per cent in the previous fiscal.
The average maturity of such borrowings during this period was 2 years as against 4.12 years in the previous fiscal.
The provision for bad and doubtful debts has shown a sharp rise of 137.11 per cent to Rs 230 crore in the June 2003 from Rs 97 crore in the previous fiscal.
Total borrowings in the first quarter increased by 42.94 per cent to Rs 2,776 crore as against Rs 1,942 crore in the previous fiscal.
The rupee borrowings was at Rs 2,397 crore, which included Omni Bonds (Rs 1,056 crore), public bonds under Flexibonds (Rs 486 crore), fixed deposits (Rs 269 crore), certificates of deposit (Rs 7 crore), short term deposits (Rs 199 crore) and commercial paper (Rs 380 crore).
Foreign Currency borrowings during the period amounted to Rs 379 crore as against Rs 368 crore raised during April-June 2002.
According to a release send by the FI, it is gearing up, as a strategic long-term measure, to migrate to the new business model of commercial banking for its sustained viability and thereby to overcome the main problem of raising resources at competitive rates and to bring down its cost of funds.
Besides, such a foray would enable IDBI to diversify its asset base, which would also have an impact on overall asset quality.
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