Date:22/07/2004 URL: http://www.thehindubusinessline.com/2004/07/22/stories/2004072201860800.htm

Back IDBI Bank records 64-pc jump in net

Our Bureau

`Despite the rise in bond yields, the bank has delivered good results due to its focus on core earnings and a high quality portfolio.'

Mumbai , July 21

IDBI Bank has recorded a 64 per cent jump in its net profit for the first quarter of this financial year at Rs 36.7 crore against Rs 22.3 crore in the corresponding period in the previous year.

The rise in net profit was due to a rise in total income which grew to Rs 139.7 crore in the first quarter ended June 30, (Rs 109.4 crore), according to a release.

Even as the business environment for the banking industry turned challenging with the rise in bond yields, IDBI Bank has delivered good results due to its focus on core earnings and a high quality portfolio, said the release quoting Mr G.V. Nageswara Rao, Managing Director, IDBI Bank.

"The bank has charted an aggressive growth path for itself and will be investing in the expansion of our branch network by nearly 30 per cent over the second quarter of this fiscal. Our efforts will be to bring in new customers while continuing to deepen our relationships with existing customers. This will be achieved through a judicious expansion of our network while launching new products to expand our portfolio. Our robust infrastructure allows us to do both of these with speed and low incremental expense," he said.

The total deposits of the bank grew to Rs 11,023 crore (Rs 6,236 crore). The bank's net NPA to net advances were near zero. The provision cover rose to 92.1 per cent (88.3 per cent).