Iibi Net Jumps 68% To Rs 80 Crore

The Industrial Investment Bank of India has registered a 68 per cent jump in net profits for 1997-98 at Rs 80.01 crore, declaring a maiden dividend of 10 per cent. The development financial institution has successfully brought down its level of non-performing assets to 12.7 per cent from 17.6 per cent in the previous year.

The institution, which is the new-look avatar of the erstwhile Industrial Reconstruction Bank of India (IRBI), posted an impressive 152 per cent rise in aggregate sanctions to Rs 2,061.04 crore, while undergoing a 110 per cent rise in disbursements to Rs 1,153.18 crore. The aggregate income rose 38 per cent to Rs 327.14 crore. The growth in asset base is 60 per cent at Rs 2,375.52 crore. Net worth of the company grew by 135 per cent at Rs 409.42 crore. Even after dividend payout on preference as well as equity shares, the retained profit at Rs 63.24 crore is higher by 30 per cent over Rs 47.61 crore . The break-up value of the shares stood at Rs 25.45 as on March 31, 1998.

 

An upbeat chairman-cum-managing director of IIBI, G Goswami said: "We are targeting a minimum 40 per cent growth in net profits for the current fiscal."

Goswami also said that the total fund mobilisation target for 1998-99 has been fixed at Rs 1,100 crore.

During the year, the focus on non-project loans to blue-chip companies increased to a whopping Rs 735.26 crore in 1997-98 compared to Rs 131.19 crore in the previous year.

The bank raised Rs 780 crore during the year from the market through issue of bonds, certificates of deposits and preference shares.

The total expenses of the company fell by 32 per cent, while total income increased by 38 per cent at Rs 327.14 crore leading to a 58 per cent growth in operating profit at Rs 86.08 crore. Capital adequacy ratio grew by 5 per cent to 11.10 per cent.

There was a decrease in debt-equity ratio by 2.8 per cent to Rs 6.11 crore, while the earnings per share grew from Rs 6.5 to Rs 9.80.

IIBI proposes to shortly enter the market with its fourth series of multi-option bonds slated to open in the first week of June. The bonds would be primarily targeted at commercial banks PF Trusts and NBFCs. The maturity profile of the bonds would vary between 1 and 7 years with the coupon rate varying tentatively between 11.5 per cent under the one-year option to 14 per cent for the 7-year scheme. The issue would be an open-ended one.