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UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED JUNE 30, 2005
|
| (
Rs.in Crore.) |
IDBI reports Q1 net profit of Rs 109
crore
Highlights of the First Quarter (Q1-FY 06)
-
Net profit at Rs 109 crore
- Operating Profit at Rs 158 crore
- Aggregate assets at Rs 82,659 crore as of June 30, 2005.
- Net NPAs decline to 1.5% as of June-end 2005 as against 1.7% as of March-end 2005
- Capital adequacy ratio stood at 16.2% as of June-end 2005 as against 15.5% as of March-end 2005
Mumbai, July 30, 2005: The Board of Directors of the Industrial Development Bank of India Limited (IDBI Ltd), at its meeting held in Mumbai on July 30, 2005, approved the financial results for the first quarter ended June 30, 2005 (Q1-FY 06). The results have been subjected to limited review by the statutory auditors.
Highlights of Q1 results
In the reporting quarter, IDBI Ltd. earned a net profit of Rs 109 crore. The financial result of Q1-FY 06 is not comparable with that of the corresponding quarter last year as the amalgamation of IDBI Bank Ltd with IDBI Ltd was effective from October 1, 2004. The bank has reported an operating profit of Rs 158 crore in Q1.
During the reporting quarter, IDBI Ltd's aggregate assets moved up by 1.6% to Rs 82,659 crore as at end-June 2005 from Rs. 81,360 crore as at end-March 2005. The Bank's total business as at June 30, 2005 stood at around Rs. 1,35,000 crore.
Deposits increased by 12% to Rs.16,851 crore in Q1 as against Rs.15,003 crore as of March-end 2005. Borrowings as of June-end, 2005 stood at Rs.49,622 crore as against Rs. 50,000 crore as of March-end 2005.
During the period under review, a combination of renewed emphasis on reducing interest expenses and access to low-cost deposits- post-merger of IDBI Bank with IDBI Ltd.- resulted in a significant reduction in overall cost of funds. Cost of funds (including Tier-II bonds) moved down from 8.56% during April-June 2004 to 7.14% during April-June 2005.
Continued recovery efforts saw the Bank pare its net non-performing assets (NPAs) from Rs 847 crore as of March-end 2005 to Rs 770 crore as of June-end 2005. In percentage terms, as of June-end 2005, net NPAs to net advances ratio was down to 1.5 % from 1.7% as of March-end 2005.
IDBI continued to have a sound capital base as indicated by its capital adequacy ratio (CAR). As against the stipulated RBI norm of 9%, the bank's CAR stood at 16.2% as of June-end 2005, up from 15.5% as of March-end 2005.
Developments During the Quarter:
- During the quarter, the bank added 11 branches and an equal number of ATMs to its network. As of June-end 2005, the bank had 130 branches, eight extension counters and 339 ATMs spread across 92 centres.
- The bank's home loan portfolio topped the Rs 5,000 crore mark in Q1 to stand at Rs 5,391 crore as of June 30, 2005. It disbursed home loans amounting to Rs 821 crore in Q1.
- It issued 63,300 debit cards in Q1, taking the outstanding debit cards to 873,000.
- IDBI Ltd. launched a number of initiatives during the quarter, including an online indirect tax payment facility. Using this innovative facility, customers in select cities can now pay central excise duty and service tax by logging on to the bank's website. This facility is approved by the Central Board of Excise & Customs (CBEC) and the Reserve Bank of India (RBI). Online payment service for direct taxes was launched some time back.
- The bank also launched CashCard - a pre-filled VISA powered card for corporates. This card could be issued to employees / agents for meeting extensive payment requirements.
- The International Financing Review Magazine (IFR) has ranked IDBI as the No. 1 bank in India & South Asia and 9th in the entire Asia-Pacific region in the category of Mandated Loan Arrangers as well as the category of Book runners for Syndicated Loans. This prestigious ranking is used as a benchmark for assessing deal-making acumen to determine the leader in the Debt Capital Market business globally.
Future Plans
IDBI expects its aggregate assets size to cross the Rs 90,000 crore mark by the end of the current fiscal year ended March 31, 2006 on the back of robust credit pick up. The Bank similarly sees its total business topping the Rs 1,50,000 crore mark by March-end 2006, aided by a 200-strong branch network.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED JUNE 30, 2005
|
Particulars |
Quarter
ended
30.06.2005
|
Accounting
period ended 31-3-2005
(6 months) |
| |
(Unaudited) |
(Audited) |
| 1. Interest earned (a)+(b)+(c)+(d) |
1331.85 |
2655.72 |
| (a)Interest/discount
on advances/bills |
1062.20 |
2185.65 |
| (b) Income on investments |
226.16 |
395.45 |
| (c) Interest on balances
with Reserve Bank of India and other
inter bank funds |
42.04 |
70.46 |
| (d) Others |
1.45 |
4.16 |
| 2. Other Income |
268.83 |
627.13 |
| A. TOTAL INCOME (1+2) |
1600.68 |
3282.85 |
| 3. Interest Expended |
1241.20 |
2467.87 |
| 4. Operating Expenses
(e)+(f) |
201.08 |
453.96 |
| (e) Payments to and
provisions for employees |
58.20 |
149.34 |
| (f) Other operating
expenses |
142.88 |
304.62 |
| B. TOTAL EXPENDITURE
(3)+(4) (excluding Provisions and Contingencies) |
1442.28 |
2921.83 |
| C. OPERATING PROFIT
(A-B) (Profit beforeProvisions and Contingencies) |
158.40 |
361.02 |
| D. Other
Provisions and Contingencies (net) |
49.89 |
53.76 |
| - of which
provision for non-performing assets |
48.57 |
72.54 |
| - Provision for Taxes
|
1.32 |
(18.78) |
| E. Net Profit (C-D)
|
108.51 |
307.26 |
| 5. Paid-up equity share
capital |
723.04 |
721.77
|
| 6. Reserves excluding
Revaluation reserves (as per balance
sheet of previous accounting year) |
|
5170.64 |
| 7. Analytical Ratios
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| (i) Percentage
of shares held by Government of India
|
52.83 |
52.89 |
| (ii) Capital Adequacy
Ratio |
16.2% |
15.5% |
| (iii) Earning
per Share (Rupees) (not annualised)
|
1.50 |
4.26 |
| - diluted
|
1.50 |
4.25 |
| (iv) |
(a) Amount of gross
non- performing assets |
1270.17 |
1215.90
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(b) Amount of net non-performing
assets |
770.43 |
847.49 |
| |
(c) % of gross NPAs |
2.47% |
2.47% |
| |
(d) % of net NPAs |
1.51% |
1.74% |
| (v) Return on assets
(annualised) |
0.53% |
0.78% |
8. Aggregate
of Non Promoter Shareholding
- No. of shares
- Percentage of Shareholding
|
340863212
47.17 |
339997022
47.11 |
Published results for the comparative quarter of previous year of erstwhile Industrial
Development Bank of India is furnished hereunder:
AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2004
| (Rs.Crore) |
| Sr.
No. |
Particulars |
Quarter
ended
30-6-2004
|
| 1 |
Income
from operations |
1340 |
| 2 |
Other
income |
39 |
| 3 |
Total
Expenditure |
|
| |
(a) Staff
cost |
25 |
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(b) Bond
issue expenses w/off |
21 |
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(c) Other
expenditure |
25 |
| |
Total
expenditure (except interest
cost) |
71 |
| 4 |
Interest
cost |
1177 |
| 5 |
Profit
before Depreciation and Provisions
(1+2-3-4) |
131 |
| 6 |
Depreciation |
97 |
| 7 |
Bad and
doubtful debts/ investments
written-off/provided for |
21 |
| 8 |
Profit
before tax (5-6-7) |
13 |
| 9 |
Provision
for taxation |
2 |
| 10 |
Deferred tax debit / (credit) |
(12) |
| 11 |
Net
profit (8-9-10) |
23 |
| 12 |
Paid up
Equity Share Capital (Face value
Rs.10 per share) |
653 |
| 13 |
Reserves
excluding Revaluation Reserves |
|
| 14 |
Earning
Per Share (Rs.)
- Basic/ Diluted
|
0.36 |
| 15 |
Aggregate
of Non-promoter Shareholding |
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-Number
of shares |
271102400 |
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-Percentage of shareholding |
41.53 |
SEGMENT INFORMATION
| (Rs.Crore) |
| Sr.
No. |
Particulars |
Quarter
ended
June 30,2 005
|
| 1 |
Segment
Revenue |
|
| |
Wholesale
banking |
1467 |
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Retail Banking |
275 |
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Treasury |
264 |
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TOTAL |
2006 |
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Less: -
Inter-segment revenue |
405 |
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Net
income from operations |
1601 |
| 2 |
Segment
Results -Profit/(loss) before
tax |
|
| |
Wholesale
banking |
92 |
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Retail Banking |
17 |
| |
Treasury |
1 |
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TOTAL |
110 |
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Less: Other
unallocable expenditure net of
unallocable income |
0 |
| |
Total profit before tax |
110 |
| |
Income
taxes |
1 |
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Net
profit |
109 |
| 3 |
Capital
employed (segment assets - segment
liabilities) |
|
| |
Wholesale
banking |
3979 |
| |
Retail Banking |
211 |
| |
Treasury |
56 |
| |
Unallocated |
1760 |
| |
Total
|
6006 |
|
Notes:
- The above results have been taken on record by the Board of Directors of the Industrial Development Bank of India Ltd. (the Bank) at its meeting held on July 30, 2005.
- Consequent to the notification of October 1, 2004 as the appointed day under the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 (Repeal Act), the undertaking of the erstwhile Industrial Development Bank of India has been transferred to, and vested in the Bank. IDBI Bank Ltd., a subsidiary of the bank amalgamated with Bank. The above results pertain to the Bank as the merged entity incorporating operation of erstwhile IDBI Bank Ltd.
- The working results for the quarter have been arrived at after considering provisions for Bad & Doubtful Debts, Income Tax and other usual and necessary provisions on an estimated basis, keeping in view the record of recovery and other relevant factors. The Bank has received RBI Inspection report for accounting period ended September 30, 2004 and is in the process of seeking further clarifications on interpretation of RBI guidelines and pending such clarification, in certain cases, the Bank has continued to adopt the same interpretation as in earlier years.
- Other income includes income from non-fund based banking activities including commission, fees, foreign exchange earnings, earnings from derivative transactions and profit and loss (including revaluation) from investments.
- There were 414 investor grievances pending as on April 1, 2005. During the quarter, the bank received 15376 investor grievances. Out of the aggregate grievances, 15461 have been redressed during the quarter and 329 grievances are pending for resolution at the end of the quarter.
- The above results for the quarter ended June 30, 2005 have been subjected to 'Limited Review' by the Statutory Auditors of the Bank, as per the Listing Agreements with The Stock Exchange, Mumbai and The National Stock Exchange of India Limited.
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By
order of the Board
sd/-
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Place : Mumbai
Date : : July 30, 2005 |
(V.P.Shetty)
Chairman |
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