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IDBI's H1 net up 2.3 pc to Rs 7.05 billion; power sector is top beneficiary

Industrial Development Bank of India has posted net profit of Rs 7.05 billion during the first half ended Septemebr 30, 1998, registering a growth of 2.3 per cent over the net profit of Rs 6.89 billion)achieved in the corresponding period last year.

According to an IDBI release, overall sanctions under all schemes under all schemes during April-September 1998 grew by 23.7 per cent to Rs 132.90 billion over sanctions during the corresponding period of 1997, disbursements during the same period at Rs 66.03 billion were higher by 5.3 per cent over disbursements made during the corresponding period last year.

A major share of bank's assistance (36.7 per cent) continued to flow to infrastructure sectors during the period.

Industry-wise, the share of electricity generation in overall assistance sanctioned (32.7 per cent) was the highest, followed by chemicals and chemical products (13.8 per cent), textile (6.7 per cent), iron and steel (6.2 per cent) and telecommunication services (four per cent). Together, these five industries accounted for 63.4 per cent of total assistance approved to all industries during April-September 1998.

The first half sanctions stood at Rs 36.23 billion against Rs 33.01 billion, an increase of Rs 3.22 billion.

Total expenditure was increased by Rs 4.14 billion to Rs 28.34 Billion from Rs 24.20 billion in the first half of last year, the release added.

Total rupee resources raised by way of borrowings during April-September 98 aggregated Rs 94.35 billion. These primarily comprised Omni Bonds (Rs 69.96 billion), corporate deposits (Rs 8.05 billion) and term money bonds (Rs 16.19 billion). Capital gains bonds and fixed deposits were the other sources of domestic borrowings.

Public issue of Flexi-Bonds 4 opened for subscription on September 21, 1998 and closed on October 17, 1998 evoking overwhelming public support. As against the target of Rs 7.5 billion, the issue could mobilise over Rs 13 billion.

IDBI's total income during the first half under review aggregated Rs 37.23 billion, registering a growth of 10.8 per cent over the corresponding level in the previous year. Gross profit (after interest but before depreciation and tax ) and profit before tax amounted to Rs 8.89 billion and Rs 7.93 billion respectively.

Aggregate assets of the bank, as on September 30, 1998 increased by 21.3 per cent to Rs 654.15 billion (Rs 539.08 billion as on September 30, 1997).

UNI