The Board of Directors of Industrial Development Bank of India Ltd. (IDBI) met in Mumbai today to consider the financial results for the quarter/year ended March 31, 2008. The results have been audited by the Statutory Auditors.Profitability:

IDBI reported a net profit of Rs. 245 crore and Rs 729 crore for the quarter and year ended March 31, 2008 respectively, as against Rs. 213 crore and Rs 630 crore in the corresponding quarter and year ended March 31, 2007 respectively. This amounts to an increase in net profit by 15.73% for the year and 15.02% for the quarter compared to corresponding period last year.

Business:

As of March 31, 2008, IDBI’s total business (deposits and advances) stood at Rs.1,55,211 crore as against Rs.1,05,825 crore as of March 31, 2007, registering a growth of 46.67%.

Deposits increased by a robust 68.38% year-on-year (y-o-y) to Rs. 72,998 crore from Rs. 43,354 crore outstanding as of March 31, 2007.

Advances also increased by 31.60% to Rs. 82,213 crore y-o-y, as compared to Rs. 62,471 crore as at March 31, 2007.

As of March 31, 2008, aggregate assets stood at Rs. 1,30,694 crore as against Rs. 1,03,839 crore as on March 31, 2007, registering a growth of 25.86%.

Non Performing Assets (NPAs)

The gross NPAs and net NPAs as on March 31, 2008 stood at Rs. 1565 crore (1.87%) and Rs. 1083 crore (1.30%) respectively as against Rs. 1232 crore (1.89%) and Rs. 722 crore (1.12%) as on March 31,2007.

CAR:

IDBI continued to maintain 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 11.95% (Tier-I: 7.42%) as of March 31, 2008.

Significant developments during `April 2007-March 2008

· IDBI has been steadily expanding its delivery platform during the year, which, as on date, comprises 499 branches and 779 ATMs, encompassing 308 centres, The Bank plans to make its maiden foray overseas during 2008 by opening branches in Singapore, Dubai and Shanghai in a phased manner.

· IDBI bagged two special awards- for “Best Payments Initiative” and “Outstanding Achiever of the Year” for the Bank’s Head of Technology – for the year 2007 from the Indian Banks’ Association, in recognition of its customer-centric IT initiatives.

· IDBI completed the reorganisation of its business into separate verticals focused on customer groups like Personal Banking, Mid-Corporate, Large Corporate, Infrastructure SME and Agri-business. A separate Recovery vertical has also been created for handling stressed assets.

· During the quarter, the Bank established a US$1.5 billion Medium Term Note Programme (“MTN Programme”). The programme will now enable the Bank to issue various debt instruments in the international capital markets, including Senior Notes, Upper Tier-2 notes and Hybrid Tier-1 notes, under a single documentation platform. This will allow the Bank to quickly take advantage of market opportunities where they arise, increasing the Bank’s fund raising efficiency.

· The Bank has set up an Entrepreneurial Development Fund (EDF) with a corpus of Rs.10 crore for financing the entrepreneurs in the Small and Medium sector.

· The Bank’s life insurance joint venture with Fortis and Federal Bank commenced operations in March 2008.

· In March 2008, IDBI opened its first City SME Center (CSC) in Mumbai to give a fillip to Small and Medium Enterprises (SMEs) lending. CSC has been established to streamline credit appraisal process to ensure faster turnaround time. More such CSCs would be set up in due course.

· In February 2008, IDBI entered into a strategic alliance with Motilal Oswal Securities Ltd. (MOSL), to facilitate online trading for the Bank’s customers. IDBI customers now have the additional option of making investments in equities, derivatives and Initial Public Offerings (IPOs) using the online trading platform of MOSL.

Sourced From: Adfactors Public Relations Pvt Ltd

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