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IDBI 12M net up 15.73% to Rs. 729 Crore

Highlights of FY08 Financial Results (FY08 Vs FY07)

Net profit up 15.73 % to Rs. 729 Crore (up 15.02% to Rs. 245 Crore for Q4)

Business up 46.67% to Rs. 1,55,211 Crore

Deposits increased by 68.38% to Rs. 72,998 Crore

Advances up by 31.60% to Rs. 82,213 Crore

Total assets grew by 25.86% to Rs. 1,30,694 Crore

Mumbai, April 26, 2008: The Board of Directors of IDBI Bank Ltd. met in Mumbai today to consider the financial results for the quarter/year ended March 31, 2008. The results have been audited by the Statutory Auditors.

Working results:

(Rs. Crore)

	Q4 2007-08	Q4 2006-07	FY 2007-08	FY 2006-07
Total Income	2628	2185	9656	7373
Interest Income	2250	1814	8021	6346
Non-Interest Income	378	371	1635	1027
Total Expenses	2323	1807	8323s	6466
Interest expenses	2014	1602	7364	5688
Operating expenses	309	205	959	778
Operating Profit	305	378	1333	907
Provisions (net)	60	165	604	277
Net Profit	245	213	729	630

Profitability:
IDBI Bank reported a net profit of Rs. 245 crore and Rs 729 crore for the quarter and year ended March 31, 2008 respectively, as against Rs. 213 crore and Rs 630 crore in the corresponding quarter and year ended March 31, 2007 respectively.

This amounts to an increase in net profit by 15.73% for the year and 15.02% for
the quarter compared to corresponding period last year.

Business:
As of March 31, 2008, IDBI’s total business (deposits and advances) stood at
Rs.1,55,211 crore as against Rs.1,05,825 crore as of March 31, 2007, registering
a growth of 46.67%.

Deposits increased by a robust 68.38% year-on-year (y-o-y) to Rs. 72,998 crore
from Rs. 43,354 crore outstanding as of March 31, 2007.

Advances also increased by 31.60% to Rs. 82,213 crore y-o-y, as compared to
Rs. 62,471 crore as at March 31, 2007.

As of March 31, 2008, aggregate assets stood at Rs. 1,30,694 crore as against
Rs. 1,03,839 crore as on March 31, 2007, registering a growth of 25.86%.

Non Performing Assets (NPAs)
The gross NPAs and net NPAs as on March 31, 2008 stood at Rs. 1565 crore
(1.87%) and Rs. 1083 crore (1.30%) respectively as against Rs. 1232 crore
(1.89%) and Rs. 722 crore (1.12%) as on March 31,2007.

CAR:
IDBI continued to maintain a sound capital base as indicated by its Capital
Adequacy Ratio (CAR). As against the stipulated RBI norm of 9%, the Bank's
CAR stood at 11.95% (Tier-I: 7.42%) as of March 31, 2008.

Significant developments during `April 2007-March 2008

IDBI Bank has been steadily expanding its delivery platform during the year, which, as on date, comprises 499 branches and 779 ATMs, encompassing 308 centres, The Bank plans to make its maiden foray overseas during 2008 by opening branches in Singapore, Dubai and Shanghai in a phased manner.

IDBI Bank bagged two special awards- for “Best Payments Initiative” and “Outstanding Achiever of the Year" for the Bank's Head of Technology - for the year 2007 from the Indian Banks' Association, in recognition of its customer-centric IT initiatives.

IDBI Bank completed the reorganisation of its business into separate verticals focused on customer groups like Personal Banking, Mid-Corporate, Large Corporate, Infrastructure SME and Agri-business. A separate Recovery vertical has also been created for handling stressed assets.

During the quarter, the Bank established a US$1.5 billion Medium Term Note Programme (�MTN Programme"). The programme will now enable the Bank to issue various debt instruments in the international capital markets, including Senior Notes, Upper Tier-2 notes and Hybrid Tier-1 notes, under a single documentation platform. This will allow the Bank to quickly take advantage of market opportunities where they arise, increasing the Bank�s fund raising efficiency.

The Bank has set up an Entrepreneurial Development Fund (EDF) with a corpus of Rs.10 crore for financing the entrepreneurs in the Small and Medium sector.

The Bank took yet another pro-active initiative by introducing an Online application facility for Educational Loans.

The Bank’s life insurance joint venture with Fortis and Federal Bank commenced operations in March 2008.

In March 2008, IDBI Bank opened its first City SME Center (CSC) in Mumbai to give a fillip to Small and Medium Enterprises (SMEs) lending. CSC has been established to streamline credit appraisal process to ensure faster turnaround time. More such CSCs would be set up in due course.

In February 2008, IDBI Bank entered into a strategic alliance with Motilal Oswal Securities Ltd. (MOSL), to facilitate online trading for the Bank�s customers. IDBI Bank customers now have the additional option of making investments in equities, derivatives and Initial Public Offerings (IPOs) using the online trading platform of MOSL.

Un-audited Financial Results for the Period Ended Dec. 31, 2007
(Rs. Lakh)
Sr. No.	Particulars	Quarter Ended		Year Ended	Year Ended
Sr. No.	Particulars	March 31, 2008 (Unaudited)	March 31, 2007 (Unaudited)	March 31, 2008 (Audited)	March 31, 2008 (Audited)
1.	Interest earned (a)+(b)+(c)+(d)	224974	181447	802084	634542
	(a) Interest/discount on advances/bills	174207	149216	650874	524191
	(b) Income on investments	40822	27505	137075	99845
	(c) Interest on balances with Reserve Bank of India and other inter bank funds	1105	4294	4648	7632
	(d) Others	8840	432	9487	2874
2	Other Income	37846	37088	163547	102718
3	Total Income (1+2)	262820	218535	965631	737260
4	Interest Expended	201378	160177	736441	568749
5	Operating Expenses (i)+(ii)	30943	20521	95879	77847
	(i) Employees cost	14048	7496	38461	28290
	(ii) Other operating expenses	16895	13025	57418	49557
6	Total Expenditure ((4)+(5) excluding provisions and contingencies)	232321	180698	832320	646596
7	Operating profit before Provisions and Contingencies (3-6)	30499	37837	133311	90664
8	Provisions (other than tax)and Contingencies (Net)	2774	16159	51041	22403
9	Exceptional Items	0	0	0	0
10	Profit (+)/Loss(-) from Ordinary Activities before tax(7-8-9)	27724	21678	82270	68260
11	Tax expense	3225	323	9325	5231
12	Net Profit (+) /Loss(-) for the period ((10-11))	24499	21355	72945	63031
13	Extraordinary items (net of tax expense)				0
14	Net Profit(+)/Loss(-) for the period((12-13))	24499	21355	72945	63031
15	Paid-up equity share capital (Face Value Rs.10)	72476	72435	72476	72435
16	Reserves excluding Revaluation Reserves	604206	547763	604206	5477 63
17	Analytical Ratios
	(i) Percentage of shares held by GOI	52.68	52.71	52.68	52.71
	(ii) Capital Adequacy Ratio (%)	11.95	13.73	11.95	13.73
	(iii) Earning Per Share (EPS) (Rupees)
	a) Basic (not annualized)	3.38	2.95	10.06	8.70
	b) Diluted (not annualized)	2.43	2.95	10.06	8.70
	(iv) NPA Ratios
	a) Amount of gross NPA	156468	123186	156468	123186
	Amount of net NPA	108291	72193	108291	72193
	b) % of gross NPAs	1.87	1.89	1.87	1.89
	% of net NPAs	1.30	1.12	1.30	1.12
	c) Return on assets (annualised)	0.90%	0.85%	0.67%	0.67%
18	Public Shareholding
	No. of shares	342985834	342576088	342985834	342576088
	Percentage of Shareholding	47.32	47.29	47.32	47.29

Segment Reporting for the year ended March 31, 2008
(Rs. Lakh)
Sr. No.	Particulars	Quarter Ended		Year Ended	Year Ended
Sr. No.	Particulars	March 31, 2008 (Unaudited)	March 31, 2007 (Unaudited)	March 31, 2008 (Audited)	March 31, 2008 (Audited)
1	SEGMENT REVENUE
	Wholesale banking	2028 86	1852 09	7430 00	6075 12
	Retail banking	838 98	506 19	3071 67	2005 63
	Treasury	495 90	655 53	1868 37	2443 53
	Total	3363 74	3013 81	12370 04	10524 28
	Less: - Inter-segment revenue	735 53	828 46	2713 73	3151 67
	Net Income from operations	2628 21	2185 35	9656 31	7372 61

2	Segment Results – Profit / (Loss) Before Tax
	Wholesale banking	223 73	158 98	562 69	380 69
	Retail banking	32 40	22 97	221 94	195 56
	Treasury	21 11	34 83	38 07	106 38
	Total	277 24	216 78	822 70	682 63
	Less: I) Interest	-	-	-	-
	II) Other unallocable expenditure net of
	Total profit before tax	277 24	216 78	822 70	682 63
	Income taxes	32 25	3 23	93 25	52 31
	Net profit	244 99	213 55	729 45	630 32
3	Capital Employed (Segment Assets – Segment Liabilities)
	Wholesale banking	4735 19	4829 73	4735 19	4829 73
	Retail banking	1285 61	1330 96	1285 61	1330 96
	Treasury	610 78	33 28	610 78	33 28
	Unallocated	135 24	8 01	135 24	8 01
	Total	6766 82	6201 98	6766 82	6201 98

The Bank has not made any disclosures under the segment `Other Banking Operations' as it is not a significant segment in terms of Accounting Standard 17

CONSOLIDATED FINANCIAL RESULTS OF IDBI LTD AND ITS SUBSIDIARIES FOR THE YEAR ENDED MARCH 31, 2008

Sr. No.	Particulars	Year Ended 31-Mar-08 (Audited)	Year Ended 31-Mar-08 (Audited)
1.	Interest earned (a)+(b)+(c)+(d)	827538	655644
	(a) Interest/discount on advances / bills	675328	541163
	(b) Income on investments	138351	100038
	(c) Interest on balances with Reserve Bank of India and other inter bank funds	4648	8338
	(d) Others	9211	6105
2	Other Income	168773	96038
A	Total Income (1+2)	996311	751682
3	Interest Expended	754653	583037
4	Operating Expenses (e)+(f)	104573	81346
	(e)Payments to and provisions for employees	41672	29550
	(f) Other operating expenses	62901	51796
B	Total Expenditure (3)+(4)( excluding provisions and contingencies)	859226	664383
C	Operating profit (A-B) before Provisions and Contingencies	137085	87299
D	OTHER PROVISIONS AND CONTINGENCIES (net)	62426	28468
	(i) Provision for non-performing assets	46845	14332
	(i) Provision for Taxes	10785	5717
E	NET PROFIT (C-D)	74659	58831
F	Paid-up equity share capital	72476	72435
G	Reserves excluding Revaluation Reserves	644878	570452
H	Earning Per Share (EPS) (Rupees)
	a) Basic	10.30	8.12
	b) Diluted	10.30	8.12

Consolidated Segment Reporting for the year ended March 31, 2008
(Rs. Lakh)
Sr. No.	Particulars	Year Ended	Year Ended
Sr. No.	Particulars	March 31, 2008 (Audited)	March 31, 2008 (Audited)
1	SEGMENT REVENUE
	Wholesale banking	7430 00	6064 81
	Retail banking	3382 93	2194 88
	Treasury	1901 01	2452 18
	Others	62 82	46 92
	Total	12776 76	10758 79
	Less: - Inter-segment revenue	2813 64	3241 98
	Net Income from operations	9963 12	7516 81

2	Segment Results – Profit / (Loss) Before Tax
	Wholesale banking	554 31	321 48
	Retail banking	263 45	225 04
	Treasury	49 84	85 16
	Others	-13 16	13 81
	Total	854 44	645 49
	Other unallocable expenditure net of unallocable income	-	-
	Total profit before tax	854 44	645 49
	Income taxes	107 85	57 17
	Net profit	746 59	588 32
3	Capital Employed (Segment Assets – Segment Liabilities)
	Wholesale banking	4735 19	4523 04
	Retail banking	1299 83	1489 09
	Treasury	609 10	87 96
	Others	175 81	313 90
	Unallocated	186 39	14 88
	Total	7006 32	6428 87

Notes:
(i) The above results have been taken on record by the Board of Directors of the IDBI Bank Ltd.at its meeting held on April 26, 2008.
(ii) Dividend at Rs. 2 per share on equity shares has been recommended by the Board for adoption by the Shareholders.
(iii)Consequent upon takeover of erstwhile United Western Bank Ltd., the Bank had, inter-alia, provided Rs.286,00 Lakh towards certain loans and advances, which were considered by the management as not readily realizable. During the year, the Bank has determined a provision of Rs.236,00 Lakh as no longer required, which has been utilized towards provision for amount receivable against investment in state level financial institutions appearing in other assets, and for provisioning of standard assets.
(iv)The transitional liability arising on account of adoption of Accounting Standard 15 (Revised 2005) – Employee Benefits of Rs.63,22 Lakh is amortised over a period of upto five years commencing from the financial year 2007-08. Out of this, an amount of Rs.13,22 Lakh has been charged to Profit & Loss account during the year.
(v) The details of investor complaints are as follows:

Category of investors	Pending as on 1/1/08	Recieved during the quarter	Disposed during the quarter	Unresolved at the end of the quarter
Shareholders	Nil	735	735	Nil
Bondholders	524	25439	25961	2
Total	648	23213	23337	524