IDBI has reported a 24.8% drop in its net profits to Rs 9.5 bn in FY00, led by heavy provisioning towards non-performing assets and thinning interest margins. During the year the bank has made provisions to the tune of Rs 7.7 bn against Rs 3.1 bn in the previous year.
During FY00, sanctions of IDBI increased by 19.2% to Rs 283 bn and disbursements were higher by 17.9% to Rs 170.6 bn.
Net NPAs of the institution rose to 13.5% in FY00 (12% in FY99) to Rs 77 bn. Textile and steel industry are the two largest contributors to the institutions NPAs.
Income from Operations
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
At the current market price of Rs 35, IDBI is available at a P/E of 2.5 times its FY00 earnings. IDBI enjoys comparatively lower valuations than ICICI, the reason being increasing level of its NPAs and deteriorating operating margins.
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