IDBI Bank on Saturday reported a net profit of Rs.771 crore for the quarter ended March 31, 2012, up 49.42 per cent as compared to Rs.516 crore in the corresponding period in the previous year.
The net profit for the year, ended March 31, 2012, was higher by 23.2 per cent at Rs.2,032 crore against Rs.1,650 crore in the previous fiscal.
The board declared a dividend of Rs.3.50 per share for the year 2011-12, which includes the final dividend of Rs.1.50 per share declared today [Saturday] and the interim dividend of Rs.2 per share already paid.
“In this financial year, the bank is expecting its fund-based business to grow by 15 per cent and non-fund business by 20-25 per cent,” said R. M. Malla, Chairman and Managing Director, IDBI Bank, while addressing a press conference here.
Total business (deposits and advances) as of March 31, 2012, stood at Rs.3,91,651 crore as against Rs.3,37,584 crore as of March 31, 2011, registering a growth of 16.02 per cent. Deposits rose to Rs.2,10,493 crore at end-March 2012 from Rs.1,80,486 crore at end-March 2011, a growth of 16.6 per cent. Advances increased by 15.32 per cent to Rs.1,81,158 crore from Rs.1,57,098 crore. Mr. Malla also said that Tier-1 bonds of Rs.2,130.50 crore held by the Government were converted into equity share capital of the bank at Rs.112.99 per share on March 28, 2012. On March 31, 2012, 7.16 crore shares and 3.35 crore shares were allotted to the Government and Life Insurance Corporation of India, respectively on a preferential basis amounting to Rs.810 crore and Rs.378.52 crore, respectively.
During the year under review, number of branches of the bank increased to 973 from 816 in the previous fiscal. Mr. Malla said that the bank was now giving lot of thrust to retail business and in the last one year, its retail business had grown substantially. This financial year, too, the bank planned to expand its retail business. “We use social media network also to develop our business,” he added.
Mr. Malla admitted that there was an increase in non-performing assets (NPAs) due to general lacklustre trend in the business environment. However, he said gross NPAs had declined from the levels of December 2011.
IDBI Bank was one of the first banks which cut its lending and deposit rates, following the announcement of the Reserve Bank of India (RBI) last Tuesday reducing the repo rate by 50 basis points. The bank cut its lending rates by 25 basis points while term deposit rates were reduced by 10-50 basis points.
“There will be pressure in the margin in the first quarter. But, going forward, the impact will be positive,” said Mr. Malla.
Keywords: IDBI Q4 results