presentation for accounting of managers on idbi bank ravish

8/6/2019 Presentation for Accounting of Managers on IDBI Bank Ravish

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Ravish R Mishra

MFM


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` Industrial Development bank ofIndia (IDBI) wasconstitutedunderIndustrial Development bankofIndia Act, 1964 as a Development FinancialInstitution and came into being as on July 01,

1964 vide GoInotificationdated June 22, 1964.It was regarded as a Public Financial Institutionin terms of the provisions of Section 4A of theCompanies Act, 1956. It continued to serve as aDFI for 40 years till the year 2004 when it was

transformed into a Bank.


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Towards achieving the faster inorganic growth of

the Bank, IDBI Bank Ltd., a wholly owned

subsidiary ofIDBI Ltd. was amalgamated with

IDBI Ltd. in terms of the provisions of Section44A of the Banking Regulation Act, 1949

providing for voluntary amalgamation of two

banking companies. The merger became

effective from April 02, 2005.


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IDBI Bank Ltd. is today one ofIndia's largest

commercial Banks. As an Universal Bank, IDBI

Bank, besides its core Banking and project

finance domain, has an established presence inassociated financial sector businesses like

Capital Market andInvestment Banking, Home

Finance, Primary Dealership area and more

recently, the Life Insurance Business.


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As a step towards taking the organization on aacceleratedgrowth path, the Bank has

reorganized its businesses aroundnine verticalsout of which six customer verticals, each

focusing ondistinct customer segments andthree business verticals. Going forward, IDBI

Bank is strongly committed to work towardsemerging as the 'Bank of choice' and 'the most

valued financial conglomerate', besidesgenerating wealth and value to all its

stakeholders.


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77

Profit & Loss Account

Mar 10 Mar 09 Mar 10 Mar 09Interest income 4081 3298 15273 11545

Interest expenses 3321 2781 13005 10306

Net Interest income 760 517 2267 1239

Other Income 547 436 2291 1476

Total income 1307 954 4558 2716

Operating Expenses 613 470 1831 1338- Employee Cost 286 223 773 583

- Other Operating Expenses 328 247 1058 755

Operating Profit 694 484 2727 1378

Provisions & contingencies 376 170 1696 519

- NPAs -86 29 236 119

- Restructured Assets 47 14 599 14

- Others (Invt., Std Asset, etc) 582 68 848 259

- Tax (Current Tax, FBT) 166 59 346 127

- Deferred Tax -333 0 -333 0

Profit After Tax 318 314 1031 859

ParticularsQuarter ended Year ended


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15273

13005

2267

2291

4558

1831

773

10582727

1696

236

599

848

346

-333

1031

Year ended Mar 10

I t r t in

Int r t xp n

N t Int r t in

Oth r In

Total in ome

Operating Expen es

- Employee Cost

- Other Operating Expenses

Operating Profit

Provisions & ontingen ies

- NPAs

- Restructured Assets

- Others (Invt., Std Asset, etc)

- Tax (Current Tax, FBT)

- DeferredTaxProfit AfterTax


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Mar 10 Mar 09 Mar 10 Mar 09

Commission, Excg & Brkg 368 270 1225 725

Profit on sale of investments 67 126 748 410

Profit/(Loss) on revaluation of investment -6 -37 -51 -86

Profit on sale of Fixed Assets -1 14 -1 13Profit on forex/derivatives 26 27 98 87

Dividend from subsidiaries 0 0 18 14

Recovery from written off cases 37 22 121 199

Other misc income 56 14 132 114Total * 547 436 2291 1476

* Fee Based Income 444 330 1435 901

Particulars

Quarter ended Year ended


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Staff C t 286 223 773 583

Rent, taxes & lighting 62 30 178 114

Printing & stationery 8 8 29 26

Advertisement & Publicity 7 23 46 48

Depreciation 32 -19 91 53

Postage, Telegram, Teleph., etc 23 14 64 50

Repairs and maintenance 25 18 84 65

Insurance 30 19 114 69

Banking expenses 13 10 47 37

Expenses for recovery ofwrite offcases 1 1 4 4Outsourcing expenses 55 63 153 132

Fee and other expenses for borrowing 18 9 74 36

Other expenditure 53 70 173 121

TOTA 613 470 1831 1338

ParticularsQuarter ended Year ended


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Non-interest income to Total Income 11.82% 11.07% 13.04% 11.34%Efficiency [Cost-Net Income] Ratio 46.91% 50.05% 40.18% 49.26%

Staff Expenses to total income 6.05% 6.09% 4.31% 4.37%

Staff Expenses to total expenses 7.12% 7.00% 5.10% 5.00%Overhead efficiency ratio 89.20% 93.78% 125.09% 110.35%

Particulars

Quarter ended Year ended


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As at 31-Mar-10 31-Mar-09

LIABILITIES

Capital 725 725

Reserve & Surplus 9438 8697

[ et Worth] 8197 7413

Deposits 167667 112401

Borrowings 47709 44417

Other Liabilities & provisions 8032 6162

Total 233572 172402

ASSETS

Cash & balance with RBI 13903 8592

Bal. with banks & money at call 679 2628

Investments 73345 50048Advances 138202 103444

Fixed Assets [incl. leased assets] 2997 2824

Other Assets 4445 4867

Total 233572 172402


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31-Mar-10 31-Mar-09

Tot l i [ + v ] ( C ore)

Net N toNet Adv es 1.02% 0.92%

SB Deposits to Tot l Deposits 5.24% 4.89%

C rrent Account Deposits to Tot l Deposits 9.35% 9.89%

Ti e Deposits to Tot l Deposits 85.41% 85.22%

Book Value - Rs. 113.08 102.29

Total OffB/Sheetitem to Total Assets 54.04% 66.83%

Owned Funds to total outside liabilities 3.81% 4.73%

Tier One Capital 11095 9559

Tier Two Capital 9006 6682

TotalCapital 20101 16241

Funded Assets 118218 90678

Total Risk Wei hted Assets 177688 140405

Total Risk Wei hted Assets to Total Assets 76.07% 81.44%

CRAR(Total) 11.31% 11.57%

CRAR - Tier I 6.24% 6.81%

CRAR - Tier II 5.07% 4.76%


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` Operating profit up 97.9% to Rs.2727 Crore during FY10` Net profit up 20.10 % to Rs.1031 Crore during FY10` Fee based income grew by 59.2% to Rs.1435 Crore (previous year

Rs.901 Crore)` NIIgrew by 82.9% to Rs.2267 Crore (previous year Rs.1239 Crore)

` Business up 41.7% to Rs.3,05,869 Crore (previous year Rs.2,15,845 Crore)` Deposits increased by 49.2% to Rs.1,67,667 Crore (previous year

Rs.1,12,401 Crore)` Advances up by 33.6% to Rs.1,38,202 Crore (previous year Rs.

1,03,444 Crore)` T

otal assets grew by 35.5% to Rs.2,33,57

2 (Previous year Rs.1,72,402 Crore)` Dividend proposed to increase to 30% compared to 25% in the

previous year


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` Profitability:IDBI reported a net profit of Rs.318 crore for the quarter and Rs.1031 crorefor the year ended March 31, 2010, as against Rs.314 crore and Rs.859crore in the corresponding quarter and year ended March 31, 2009. Thisamounts to an increase innet profit by 20.1% for the year.

` Net

Interest

Income (NII) for the quarter ended March 31, 2010 stood atRs.760 crore as against Rs.517 crore in the corresponding quarter of the

previous year, recording a growth of 47.0%. NII for the year ended March31, 2010, stood at Rs.2267 crore as against Rs.1239 crore in the previousyear, recording a growth of 82.9%.

` Fee based income during the year has shown considerable improvementto Rs.1435 Crore as against Rs.901 Crore in the previous year, recording agrowth of 59.2%.


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` Business:As of March 31, 2010, IDBIs total business (depositsand advances) stood at Rs.3,05,869 crore as againstRs.2,15,845 crore as of March 31, 2009, registering agrowth of 41.7%.

` Deposits increased to Rs.1,67,667 Crore at end-March2010 from Rs.1,12,401 crore at end-March 2009, with arobust growth of 49.2%.

` Advances increased by 33.6% to Rs.1,38,202 crore, ascompared to Rs.1,03,444 crore as at end-March 2009.


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`As of March 31, 2010, aggregate assets stood

at Rs.2,33,572 crore as against Rs.1,72,402

crore as on March 31, 2009, registering a

growth of 35.5%.


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Thank You

presentation for accounting of managers on idbi bank ravish

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