IDBI net profit drops 38 per cent to Rs 424 crore
By Our Banking Bureau | 01 Jun 2002
Profit for the previous fiscal year also includes a one-time gain of Rs 260 crore from the sale of shares of Small Industries Development Bank of India (SIDBI). The board of directors has proposed a dividend of Rs 1.50 per share (15 per cent).
The institution has also done a massive cleanup with a Rs 2,500-crore accelerated provisioning for non-performing assets. Aside of the accelerated provisioning, the financial institution has also made a regular provisioning of Rs 773 crore.
IDBI said the drop in profit was mainly on account of a shift in focus from unbridled growth to cleaning up the balance sheet. IDBIs income from operations has fallen close to 10 per cent to Rs 7,804 crore (Rs 8,664 crore).
It was a year of consolidation and cleaning up. We are now focussing on asset quality rather than blind expansion of growth. The fall in profit should also be viewed in the context of the non-recurring income from the sale of SIDBI shares last year, says IDBI chairman and managing director P P Vora.
