Net profit in fourth quarter grows 62% to Rs516 crore on lower bad loans provisioning and higher interest income; RM Malla, chairman and managing director, sets 40% growth target for retail deposits
IDBI Bank will continue to increase the corporate loan business, but focus more on the retail segment in 2011-12. Currently, the bank's corporate-to-retail loan ratio stands at 70:30.
"We have engaged with almost top 500 companies in India. We will continue to expand our corporate loan business, but this year (FY2011-12) we will aggressively focus on retail," RM Malla, chairman and managing director, IDBI, said on Tuesday.
Savings and current accounts contribute more than 25% to the bank's funds. "We are targeting around 40% growth in retail deposits," Mr Malla told a news conference called to announce the results.
The bank announced a 62% growth in net profit to Rs516 crore in the quarter ended March 2011 from Rs318 crore in the previous corresponding quarter, mainly due to lower provisioning for bad debts and a rise in interest income. Net profit for the full year 2010-11 grew by 60% to Rs1,650 crore, as against Rs1,031 crore in 2009-10.
IDBI's net interest income in the fourth quarter increased by 45% to Rs1109 crore as against Rs 762 crore in the corresponding quarter of the previous year. Total income of the bank for the quarter rose to Rs 5,701 crore from Rs 4,628 crore in the same period last year.
IDBI's deposits increased to Rs1,80,486 crore in the fourth quarter to March 2011 from Rs1,67,667 crore in the corresponding period a year ago. Advances stood at Rs1,57,098 crore, compared to Rs1,38,202 crore. The bank expects a loan growth of 15% to 18% in the current financial year.
IDBI plans to raise $1 billion in this fiscal through its umbrella medium term note (MTN) programme. The bank had mopped up $350 million through this programme last year.
The state-owned bank also plans to raise $250 million via a bond issue in which global banks and financial institutions will invest. "We will raise $250 million in a bond issue and Asian Development Bank will be a guarantor," Mr Malla said.
The bank's step to waive charges on current and savings account (CASAs) transactions led to an increase in the proportion of CASA in total deposits. "With this step, the share of CASA in the total deposit increased to 20% from 15 %," the chairman said.
The bank opened 284 branches in FY11 and it intends to increase the number of branches this year too. "We have got licences to open 500 branches. We opened 284 branches in FY11. We plan to open more branches," said Pothukuchi Sitaram, chief financial officer, IDBI.
Bajaj Auto has launched its new Discover 125cc motorcycle in the Tamil Nadu market and expects the sales volume of its Discover brand to grow to 1.5 lakh per month this fiscal
Bajaj Auto Ltd has launched its new Discover 125cc motorcycle in the Tamil Nadu market and expects the sales volume of its Discover brand to grow to 1.5 lakh per month this fiscal.
"With the launch of Discover 125cc, we expect the sales volume of our Discover brand to rise to 1.5 lakh per month for 2011-12 fiscal from the present 1.2 lakh," Bajaj auto zonal manager-motorcycle business Guruprasad said.
He added that out of the 30,000 monthly addition of vehicles next fiscal, at least 20,000 would be Discover 125cc, which is powered with tough engine and optimum combination of mileage and power at a price of Rs45,392 (ex-showroom).
The discover 125cc is the third motorcycle to be launched by the company after the successful Discover 100cc and Discover 150 models.
Claiming that the company is the second largest two-wheeler brand in the world, Guruprasad said over 40 lakh motorcycles of the Discover brand, launched in 2008-09, were on the road across the country.
The company has a market share of 27% in the country and is witnessing a 2.6% growth year-or-year nationally, while in Tamil Nadu it is registering 37% growth, he said.
Launched in Kerala and Karnataka a couple of days ago, the vehicle would soon be launched in Maharashtra and Gujarat, and the rest of the country in a phased manner.
On Wednesday, Bajaj Auto ended 1.77% up at Rs1,474.05 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.83% to 19,470.98.
Mahindra Logistics is scouting for a partner in China as it looks to expand its new foray into the international markets
Mahindra Logistics, the transportation and logistics arm of the Mahindra & Mahindra group, said it is scouting for a partner in China as it looks to expand its new foray into the international markets.
The company, which clocked a turnover of Rs1,000 crore last fiscal, is eyeing a growth of 25% this year.
It also plans to set up 11 warehouses in North, South and West India in partnership with developers to enhance its supply chain management services ahead of the planned rolled out of Goods and Services Tax.
"We are looking at all the international markets for freight forwarding by both sea and air. The top two priority markets are the US and China," Mahindra Logistics CEO Pirojshaw Sarkari told PTI.
Considering the traffic between India and China, he said the company is "looking for a partner in China to expand the freight business."
"As for the US market we are currently developing lane," he said, adding, the choosing a partner would come later.
Six months back Mahindra Logistics had started its international vertical in sync with the global expansion of the M&M group and got into freight forwarding.
On the domestic front, Sarkari said the company expects consolidation by many corporates in their logistics chain once GST is introduced in India and Mahindra Logistics would look to tap the opportunity by strengthening its warehousing facility.
"We will be setting up three mega warehouses of 5,00,000 sq ft and another eight smaller ones of around 1,50,000 sq ft-2,00,000 sq ft," he said. These will be leased out from developers who will build them according to the company's requirements, he added.
Out of the total, Rs300 crore were from the people transport services provided to many BPOs, ITes and other corporates, he said, adding the rest Rs700 crore were from the supply chain management vertical.
Sarkari said the company has made investments of over Rs10 crore in technology and "with a growing focus on transportation, warehousing and international logistics, we are set to become truly globally competitive."