Idbi Sets 20% Growth Target
Industrial Development Bank of India (IDBI) has set a growth target of 20 per cent in operations for the current year 1997-98. Announcing the audited financial results for the year 1997, S H Khan, CMD of the development bank said he expected further improvement of investment climate in the country. "Easy liquidity conditions and declining interest rates point towards the direction," he opined.
Commenting on the industrial prospects, he was of the view that firming up of international demand for commodities like steel would result in improved performance of the sector. Companies like Essar Steel, Tisco have been hurt last year due to the soft steel prices.
He also expressed hope that this year's budget with major income tax cuts would encourage individual savings. "This would boost industrial results and aid the final revival of the capital market," he said.Acknowledging the fact that doing business in post-CAC days will be totally different and the time frame of three years is too short, Khan said the bank would plan an internal team to study the scenario.
He also called for major changes in guidelines to facilitate cutting down non-performing assets to the prescribed level.
As for business avenues, he was hopeful that infrastructure projects should pick up in a big way in the current year. "The bank has a large number of projects in the telecom and power sector," he said.
He put the current year's fund requirement at around Rs 14,000 crore. Of this, Rs 11,000 crore will be raised domestically and Rs 3,000 crore from abroad. However, he refused to divulge details of the resource mobilisation programme.
He also outlined his strategy to raise public deposits. In addition to the six existing branches working in the area, eight
more branches will also do the same.
The bank is also planning to involve the 1,000 agents who worked for its Flexibond issues in the exercise.