IDBI net up 6% at Rs 139 crore

BS 200 Scorecard

The robust contribution from treasury and retail businesses helped Industrial Development Bank of India (IDBI) to post 5.73 per cent growth in net profit for the second quarter at Rs 139 crore as against Rs 132 crore in the same period a year ago.

The total income rose to Rs 1,641.24 crore from Rs 1,568.1 crore a year ago. The revenues from wholesale banking, which still has predominant share in business, dipped to Rs 1,343.42 crore from Rs 1,418.66 crore.

The revenues from treasury doubled to Rs 650.59 crore from Rs 324.60 core in July-September 2006. The retail segment saw revenues moving up at Rs 463.51 crore from Rs 311.05 crore.

"The retail segment made significant contribution to our performance. We expect the income from project finance and infrastructure lending to improve in the coming days," IDBI Chairman V P Shetty said.

The public sector bank reported a net interest income of Rs 135 crore in the current quarter as against minus Rs 45 crore a year ago. Its business (deposits plus advances) rose by 32 per cent to Rs 85,262 crore as against Rs 64,571 crore.

The deposits rose by a 71 per cent to Rs 30,953 crore. The low-cost deposits "" current account and savings account (CASA) deposits "" now account for 25 per cent of the total deposits.

Advances increased by over 17 per cent to Rs 54,309 crore as compared with Rs 46,413 crore as at the end of September 2005. The retail assets, which now form 17 per cent of total advances, stood at over Rs 9,500 crore.

Despite hardening of interest rates, the bank managed to pare its cost of funds to 6.66 per cent as against 7.19 per cent in the corresponding period last year. The net non-performing assets moved up marginally to 1.29 per cent from 1.24 per cent. Its capital adequacy ratio was 14.66 per cent.