Idbi Q2 Profit Plummets 85% To Rs 25 Crore

Industrial Development Bank of India (IDBI) has reported a drastic 84.69 per cent slide in its net profit at Rs 25.20 crore in the second quarter ended September 30, 2001, compared with Rs 164.70 crore posted in the corresponding quarter of the previous year.

In the half year ended September 30, 2001, the financial institution has reported a 46.70 per cent drop in its net profit to Rs 207 crore as against Rs 388.40 crore earned in the same period in the previous year.

In the reporting quarter IDBI's income from operations declined by 7.29 per cent to Rs 1,898.70 crore compared with Rs 2,048.20 crore in the second quarter of 2000-01.

Other income was down by 29.31 per cent to Rs 27 crore (Rs 38.20 crore in Q2 of 2000-01).

Total expenditure of the FI was unchanged at Rs 73.70 crore. Interest cost in the second quarter declined by 2.44 per cent to Rs 1,608 crore as against Rs 1,648.30 crore in the comparable period of the previous year.

Bad & doubtful debts/ investments written off/ provided for increased by 24.44 per cent to Rs 162.90 crore (Rs 130.90 crore) and profit before tax was down by 85.65 per cent to Rs 25.20 crore (Rs 175.70 crore).

The company has made nil provision for taxation as against Rs 11 crore in the corresponding quarter last year.

"The provisioning is high due to reversal of past interest income," P P Vora, chairman and managing director said.

Meanwhile in the reporting half year ended September 30, 2001 the financial institution's income from operations, which reflects the economic slowdown in the country, rose by only 1.42 per cent to Rs 4,056.10 crore in the reporting half as against Rs 4114.70 crore in the corresponding period in the previous year.

IDBI's other income increased by 8.53 per cent at Rs 71.20 crore in H1 of 2001-02 as against Rs 65.60 crore in H1 of 2000-01.

The institution has provided Rs 426.90 crore in the current half-year towards bad & doubtful debts/investments written off (Rs 210.90 crore in H1 of the previous year).

During the current half year, the Small Industries Development Bank of India has ceased to be a subsidiary of the bank.