• JULY 27, 2000

IDBI Bank's outstanding profit growth

IDBI Bank has recorded 26% growth in net profits to Rs 119 m on the interest income of Rs 1.3 bn. Excluding the provision & contingencies, the bank's profits increased by 152% to Rs 255 m. Due to less than proportionate increase in the interest expenditure, the bank's operating margins rose to 19.5%.

(Rs m)1QFY001QFY01Change
Interest Income 842 1,252 48.7%
Other Income 109 244 123.2%
Interest Expended 694 1,009 45.3%
Operating Profit (EBDIT) 148 244 64.9%
Operating Profit Margin (%)17.5%19.5% 
Other Expenses 102 169 66.7%
Depreciation 20 25 23.9%
Profit before Tax136294116.7%
Provision & Contingencies71361956.1%
Tax 34 39 13.4%
Profit after Tax/(Loss) 95 119 25.8%
Net profit margin (%)11.2%9.5% 
No. of Shares (eoy) (m) 140.0 140.0  
Diluted number of shares 140.0 140.0  
Diluted Earnings per share* 2.7 3.4  

The bank's deposits witnessed a growth of 28% to Rs 38 bn and advances grew by 45% to Rs 16 bn.

At the current market price of Rs 24.5, IDBI Bank is trading at PER of 7 times its 1QFY01 earnings. The bank has Price/Book value ratio of 1.3 times.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407