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Idbi Likely To Log 5% Rise In Disbursements

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Sangita Mehta BSCAL
Last Updated : Oct 16 1997 | 12:00 AM IST

Industrial Development Bank of India is expected to record a meagre five per cent rise in disbursements for the first half of the current year over the corresponding period for the previous year, according to internal estimates. However, sanctions are expected to jump 30 per cent.

The figures will be finalised in the last week of this month. Figures available at present indicate that disbursements have grown barely four per cent, while sanctions have risen 28 per cent. Sources say the projected five per cent rise in disbursements and 30 per cent increase in sanctions will be achieved with great difficulty.

Sources said IDBIs sanctions are likely to touch Rs 10,270 crore (Rs 7,900 crore), while disbursements are seen at Rs 6220 crore (Rs 5,930 crore). This compares poorly with rival ICICIs 21 per cent jump in disbursements and 87 per cent rise in sanctions. IDBIs poor showing is being attri-buted to a drop in disbursements to the funds-flush banking sector.

IDBI has posted an estimated jump in net profit of 30 per cent during the first quarter of the current financial year. However, the profits figures of the second half of the current financial year are expected to average down, said sources.

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First Published: Oct 16 1997 | 12:00 AM IST

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