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IDBI Q3 net up 38.7% to Rs. 176 Crore
IDBI reports 9M net profit of Rs. 484 Crore

Highlights of Q3 FY08 financial results (Q3FY08 Vs Q3FY07)

Net profit up 38.7 % to Rs. 176 Crore

Business up 27.8% to Rs. 1,25,332 Crore

Deposits increase by 51.3% to Rs. 56,889 Crore

Advances up by 13.2 % to Rs. 68,443 Crore

Total assets grow by 15.8 % to Rs. 1,13,182 Crore

Mumbai, January 17, 2008: The Board of Directors of Industrial Development Bank of India Ltd. (IDBI) met in Mumbai today to consider the financial results for the quarter/nine month period ended December 31, 2007. The results have been subjected to limited review by the statutory auditors.

Working results:

(Rs. Crore)

	Q3 2007-08	Q3 2006-07	9M 2007-08	9M 2006-07	FY 2006-07
Total Income	2471	1877	7028	5187	7373
Interest Income	2077	1697	5771	4531	6346
Non-Interest Income	394	180	1257	656	1027
Total Expenses	2079	1674	6000	4659	6466
Interest expenses	1864	1485	5351	4086	5688
Operating expenses	215	189	649	573	778
Operating Profit	392	203	1028	528	907
Provisions (net)	217	76	544	112	277
Net Profit	176	127	484	417	630

Profitability:
IDBI reported a net profit of Rs. 176 crore and Rs 484 crore for the quarter and nine months period ended December 31, 2007 respectively, as against Rs.127 crore and Rs 417 crore in the corresponding quarter and nine months of the previous year respectively.

The Bank continued to maintain a high overhead efficiency ratio (Other Income/
Operating Expenses) of 183.71% in the three months ended December 31, 2007.

Business:
As of December 31, 2007, IDBI�s total business (deposits and advances) stood at Rs 1,25,332 crore as against Rs 98,057 crore as of December 31, 2006, registering a growth of 27.82%.

Deposits increased by a robust 51.34% year-on-year (y-o-y) to Rs. 56,889 crore
from Rs. 37,591 crore obtaining as of December 31, 2006.

Advances also increased by 13.19% to Rs. 68,443 crore y-o-y, as compared to
Rs. 60,466 crore as at end-December 31, 2006.

As of December 31, 2007, aggregate assets stood at Rs. 1,13,182 crore as
against Rs. 97,754 crore for the same period last year, registering a growth of
15.78%.

Cost of Funds
Cost of funds was 8.02% (7.19% in Q3 FY07) and 7.67% (6.79% in the nine
months of 2006-07) for the quarter and nine months ended December 31, 2007
respectively. Yield on assets was 9.33% (7.99%) and 8.84% (7.56%) for the
quarter and nine months ended December 31, 2007 respectively.

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 13.31% (Tier-I: 8.57%) as of December 31, 2007. This provides
significant headroom for further growing the business.

Significant developments from October 2007 to date

IDBI has been steadily expanding its delivery platform during the year, which, as on date, comprises 496 branches and 636 ATMs, encompassing 302 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 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 completed the reorganisation of its business into separate verticals focused on 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.

IDBI has launched a new co-branded debit card in a tie-up with MasterCard, thereby extending its range of debit cards.

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

The Bank introduced a new product involving encashment/sale of Foreign Currency by NRI Clients and encashment of Travellers' Cheques by Bank�s existing NRI customers.

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�s life insurance joint venture with Fortis and Federal Bank is expected to commence business in February 2008. The Bank is awaiting final approval from IRDA (Insurance Regulatory and Development Authority) for two insurance products.

The Bank has hired Cerebus Consultancy to help structure a compensation package, including ESOP for its employees.

Un-audited Financial Results for the Period Ended Dec. 31, 2007

(Rs. Lakh)

Quarter Ended
Dec 31, 2007	Dec 31, 2006

Quarter Ended
Dec 31, 2007	Dec 31, 2006

Year Ended
March 31, 2007

		(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)	(Audited)
1.	Interest earned (a)+(b)+(c)+(d)	2077 24	1697 35	5771 09	4531 01	6345 42
	(a) Interest/discount on advances/bills	1706 60	1421 60	4766 67	3749 75	5241 91
	(b) Income on investments	358 02	260 81	962 52	723 46	998 45
	(c) Interest on balances with Reserve Bank of India and other inter bank funds	9 95	9 34	35 43	33 38	76 32
	(d) Others	2 67	5 60	6 47	24 42	28 74
2	Other Income	394 15	180 30	1257 01	656 24	1027 18
3	Total Income (1+2)	2471 38	1877 65	7028 10	5187 25	7372 60
4	Interest Expended	1864 32	1485 42	5350 63	4085 72	5687 49
5	Operating Expenses (i)+(ii)	214 55	189 00	649 35	573 25	778 47
	(i) Employees cost	81 49	75 51	244 12	207 93	282 90
	(ii) Other operating expenses	133 07	113 49	405 23	365 32	495 57
6	Total Expenditure ((4)+(5) excluding provisions and contingencies)	2078 88	1674 42	5999 98	4658 97	6465 96
7	Operating profit before Provisions and Contingencies (3-6)	392 51	203 23	1028 12	528 28	906 64
8	Provisions (other than tax)and Contingencies (Net)	195 17	49 68	482 66	62 43	224 02
9	Exceptional Items	-	-	-	-	-
10	Profit (+)/Loss(-) from Ordinary Activities before tax(7-8-9)	197 34	153 55	545 46	465 85	682 62
11	Tax expense	21 50	26 76	61 00	49 08	52 31
12	Net Profit (+) /Loss(-) for the period ((10-11))	175 84	126 79	484 46	416 77	630 31
13	Extraordinary items (net of tax expense)	-	-	-	-	-
14	Net Profit(+)/Loss(-) for the period((12-13))	175 84	126 79	484 46	416 77	630 31
15	Paid-up equity share capital (Face Value Rs.10)	724 68	724 14	724 68	724 14	724 35
16	Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year)					5477 63
17	Analytical Ratios
	(i) Percentage of shares held by GOI	52.68	52.72	52.68	52.72	52.71
	(ii) Capital Adequacy Ratio (%)	13.31	14.09	13.31	14.09	13.73
	(iii) Earning Per Share (EPS) (Rupees)
	a) Basic (not annualized)	2.43	1.75	6.69	5.76	8.70
	b) Diluted (not annualized)	2.43	1.75	6.68	5.75	8.70
	(iv) NPA Ratios
	a) Amount of gross NPA	1579 16	1505 51	1579 16	1505 51	1231 00
	Amount of net NPA	830 81	973 49	830 81	973 49	721 93
	b) % of gross NPAs	2.24	2.37	2.24	2.37	1.89
	% of net NPAs	1.19	1.55	1.19	1.55	1.12
	c) Return on assets (annualised)	0.66%	0.54%	0.61%	0.61%	0.67%
18	Public Shareholding
	No. of shares	342901320	342366812	342901320	342366812	342576088
	Percentage of Shareholding	47.32	47.28	47.32	47.28	47.29

SEGMENT INFORMATION

(Rs. Lakh)

Sr. No.

Particulars

Quarter Ended
Dec 31, 2007	Dec 31, 2006

(Reviewed)	(Reviewed)

Quarter Ended
Dec 31, 2007	Dec 31, 2006

(Reviewed)	(Reviewed)

Year Ended
March 31, 2007

(Audited)


1	SEGMENT REVENUE
	Wholesale banking	1893 45	1493 93	5401 14	4223 03	6075 12
	Retail banking	776 55	603 67	2232 69	1499 44	2005 63
	Treasury	403 36	605 96	1372 47	1787 99	2443 53
	Unallocated
	Total	3073 36	2703 57	9006 30	7510 47	10524 28
	Less: - Inter-segment revenue	601 97	825 93	1978 20	2323 22	3151 67
	Net Income from operations	2471 39	1877 64	7028 10	5187 25	7372 60
2	Segment Results – Profit/ (Loss) Before Tax
	Wholesale banking	195 22	90 99	338 96	221 70	380 69
	Retail banking	1 35	58 41	189 54	172 59	195 56
	Treasury	77	4 15	16 96	71 55	106 38
	Unallocated
	Total	197 34	153 55	545 46	465 85	682 62
	Less: I) Interest
	II) Other unallocable expenditure net of
	III) Unallocable income
	Total profit before tax	197 34	153 55	545 46	465 85	682 62
	Income taxes	21 50	26 76	61 00	49 08	52 31
	Net profit	175 84	126 79	484 46	3416 77	630 31
3	Capital Employed (Segment Assets – Segment Liabilities)
	Wholesale banking	5306 71	4067 14	5306 71	4067 14	4829 73
	Retail banking	1160 82	644 27	1160 82	644 27	1330 96
	Treasury	172 46	183 96	172 46	183 96	33 28
	Unallocated	48 49	1857 84	48 49	1857 84	2071 92
	Total	6688 48	6753 21	6688 48	6753 21	8265 89

Notes:
(i) The above results have been taken on record by the Board of Directors of
the Industrial Development Bank of India Ltd. (the Bank) at its meeting held on
January 17, 2008 and have been subjected to ‘Limited Review’ by the Statutory
Auditors.
(ii) The impact of revised Accounting Standard 15 – Employee Benefits,
effective for accounting periods commencing on or after December 6, 2006, will
be accounted for at the year-end.
(iii) Consequent upon takeover of erstwhile United Western Bank Ltd., the
Bank had, inter alia, provided Rs.286 Crore towards certain loans and advances,
which were considered by the management as not readily realizable. Based on
Management’s assessment during the quarter, the Bank has determined a
provision of Rs.236 Crore as no longer required, which has been utilized towards
making provision for amount receivable against investment in state level financial
institutions appearing in other assets, and also for other assistance provided to
them by way of refinance.
(iv) Provision for taxes includes provision for Fringe Benefit Tax of Rs 1.5
crore for the quarter ended December 31, 2007
(v) The details of investor complaints are as follows:

Category of investors	Pending as on 1/10/07	Recieved during the quarter	Disposed during the quarter	Unresolved at the end of the quarter
Shareholders	Nil	782	782	Nil
Bondholders	648	22431	22555	524
Total	648	23213	23337	524