Fee income fuels IDBI profit 12%

The Industrial Development Bank of India posted 12 per cent increase in net profit at Rs 156 crore in the quarter ended September 2007 as against Rs 139 crore in the corresponding period last year, thanks to a robust growth in non-interest income.

The total income rose by 44 per cent to Rs 2,364 crore from Rs 1,641 crore last year. The non-interest income more than doubled to Rs 463 crore from Rs 192 crore.

The credit-related fees and income from the sale of investment securities, including shares worth Rs 260 crore, gave a boost to the non-interest income (NII) in the second quarter, chief financial officer R K Bansal said. 
 

ON A HIGH
Performance in Q2 FY 08
Total income	Rs 2,364 cr	44% ^
Expenses	Rs 1,985 cr	32% ^
Operating profit	Rs 379 cr	185% ^
Net profit	Rs 156 cr	12% ^
Business	Rs 1,12,355 cr	32% ^
Deposits	Rs 50,002 cr	61% ^
Advances	Rs 62,353 cr	15% ^
Total assets	Rs 1,08,640 cr	20% ^
% change y-o-y

The NII stood at Rs 145 crore as against Rs 135 crore a year ago. The net interest margin improved to 0.64 per cent at the end of the September quarter from 0.28 per cent in the previous quarter (ended June 2007).

The bank's business rose by 32 per cent to Rs 1,12,355 crore as of September 30, 2007, as against Rs 85,262 crore last year. The deposits were up by 61 per cent to Rs 50,002 crore and the advances increased by 15 per cent to Rs 62,353 crore from Rs 54,309 crore in the corresponding period.

"Though we see signs of credit pick-up on the corporate front, it does not look very robust. With a cut in home loan rates and onset of the festive season, we expect a growth in retail credit", Bansal said.

The bank's aggregate assets stood at Rs 1,08,640 crore as against Rs 90,235 crore and capital adequacy ratio stood at 14.10 per cent, with tier I capital at 8.95 per cent.