The Hindu Business Line : IDBI net rises 17 pc

INDUSTRIAL Development Bank of India (IDBI), undergoing conversion into a commercial bank, has posted a 17-per cent increase in net profit for the third quarter ended December 31, 2003 at Rs 47 crore, up from Rs 40 crore in the corresponding period of the previous year.

While income from operations decreased to Rs 1,639 crore (Rs 1,797 crore), interest cost was reduced to Rs 1,160 crore (Rs 1,447 crore). Other income was a tad lower at Rs 26 crore (Rs 27 crore), said a press release from the institution.

Total income in Q3 decreased 8.7 per cent to Rs 1,665 crore (Rs 1,824 crore) and total expenditure decreased 18.4 per cent to Rs 1,230 crore (Rs 1,509 crore).

Aggregate assets at the end of third quarter stood at Rs 62,998 crore which include outstanding business assets of Rs 58,783 crore.

Disbursements during the nine month period increased 74 per cent to Rs 3,347 crore as compared to disbursement volumes of Rs 1,921 crore in the corresponding period of the previous year, said the release.

Bad and doubtful debts/investments written-off/provided for were Rs 389 crore (Rs 222 crore).

The cost of incremental rupee borrowing during April-December 2003 at 6.63 per cent per annum was lower as compared to 8.63 per cent in April-December 2002. The average maturity of such borrowings through market bonds was 4.27 years as compared to 2.79 years in the previous year.

For the nine-month period ended December 2003, the net profit was 16 per cent higher at Rs 223 crore (Rs 193 crore).

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