Idbi Capital Profit Rockets 419%

IDBI Capital Market Services Ltd (ICMS), the capital market subsidiary of Industrial Development Bank of India (IDBI), has recorded a 419 per cent increase in its net profit for 2001-02 to Rs 234 crore. ICMS had posted a net of Rs 45 crore for the previous fiscal.

The increase in net profit of the company was mainly due to a sharp jump in the profit made by its primary dealing operations. The profit from trading in the government securities zoomed by 548 per cent to Rs 3,207 crore in 2001-02, from Rs 49.96 crore in 2000-01. The outright turnover by the company in the government security market increased by 71 per cent to Rs 1,00,026 crore in 2000-102 for Rs 58,493 crore in 2000-02.

 

Claiming that the company has made the highest net profit among all the primary dealers, GV Nageswara Rao, managing director, ICMS, said: "We are aiming to maintain the same position in 2002-03 as well." Rao, however, said the last fiscal (2001-02) was an exception and the company is not likely to maintain the same kind of profitability in current financial year.

Interest income rose by 73 per cent from Rs 143.28 crore in 2001-02 from Rs 82.70 crore in 2000-01. Total income rose by 233 per cent to Rs 469.90 crore in 2001-02. In 2000-01, the company earned a total income of Rs 141.15 crore.

In the current financial year, ICMS plans to focus on retailing of government securities and management of pension, provident fund and trust fund. The company, at present, manages pension, provident funds and trust funds in excess of Rs 23,000 crore. The company has also started trading in index and stock derivatives.