IDBI Bank net up 53.42%

MUMBAI, MAY 13: IDBI Bank, a new generation private sector bank, has reported an impressive 53.42 per cent growth in net profit to Rs 30....

MUMBAI, MAY 13: IDBI Bank, a new generation private sector bank, has reported an impressive 53.42 per cent growth in net profit to Rs 30.76 crore for fiscal 1998-99 from Rs 20.05 crore in the previous financial year.

IDBI Bank chairman M S Verma said the bank planned to raise about Rs 100 crore towards the third quarter of current fiscal, to support its proposed expansion of retail service portfolio to include new products including housing and personal loans.

The bank has announced a maiden dividend of nine per cent, which would be paid after getting the shareholders’ approval, IDBI Bank officials said here today.

The total income of the bank shot up 94.1 per cent to Rs 323.9 crore in 1998-99 from Rs 166.9 crore in 1997-98. The interest income jumped 97.6 per cent to Rs 295 crore in 1998-99 from Rs 149 crore in the previous financial year.

On the future course of action, Verma said the bank would tailor new products both for corporate and retail customers as well as expand the existing branchnetwork.

He said IDBI Bank would form relations with other banks of comparable technological levels’ to exploit the joint strengths of branch networks and other synergies.

“Banks can join hands to leverage their common strengths to improve their networking and bring down the delivery costs. Smaller banks can create larger capacities by joining forces,” Verma said.