IDBI Bank has posted a 28 per cent rise in its net profit at Rs 313.4 crore for the fourth quarter ended March 31, 2009, as against Rs 245 crore in the previous corresponding period. For the financial year 2008-09, its net profits rose by 17.7 per cent to Rs 859 crore as against Rs 729 crore in 2007-08.
More control over cost of funds and better pricing of loans helped to improve interest income. Also the increase in loan syndication activity gave a boost to fee income. Both helped to improve the bottom-line, the bank’s chairman and managing director Yogesh Agarwal told reporters here today.
The board has recommended a dividend of 25 per cent for the financial year ended March 2009.
The total income for the reporting quarter rose to Rs 3,734.5 crore from Rs 2,646.9 crore in January-March 2008. For the full financial year 2008-09, the total income increased to Rs 13,021.54 crore from Rs 9,622.65 crore in 2007-08.
Its business (deposits plus advances) rose by 39 per cent to Rs 2,15,829 crore. Deposits increased to Rs 1,12,401 crore, showing a 54 per cent growth over an outstanding deposits’ base of Rs 72,998 crore at the end of March 2008.
“The bank expects to grow deposits by 50 per cent in 2009-10,” Agarwal said.
Advances were up by 26 per cent to Rs 1,03,428 crore. The credit is expected to grow in line with the industry estimate of 20 per cent, he added. The bank’s capital adequacy ratio stood at 11.57 per cent, higher than the regulatory norm of 9 per cent, but below the government’s comfort level of 12 per cent.
“We have submitted a plan to the government to augment the capital base for a 2-3 year period,” he said, while declining to give details.
On business growth plans, Agarwal said that the bank has received permission from the Reserve Bank of India to start an asset management company. It will start this business in the current financial year.
