IDBI classifies DPC as NPA, net down 19 pc

The Industrial Development Bank of India (IDBI) has provided entirely for its Rs 2,121 crore exposure to the Dabhol Power Company (DPC). IDBI has provided for both the phases of DPC though it believes that phase-II of the project is still under implementation.

Increased provisioning for bad and doubtful debts, and investments have pulled down the net profit of IDBI by 18.95 per cent to Rs 325 crore in 2003-04. IDBI, which is in the process of converting itself to a bank by June 2004 has gone for a higher provisioning amounting to Rs 1,540 crore, up by 38 per cent during 2003-04 from Rs 1,110 crore which was provided against sticky assets in 2002-03.

In the fourth quarter of 2003-04, the bank’s provisioning against bad debts went up by 37 per cent to Rs 615 core. It has reported a 18.95 per cent drop in net profit for the 12-month period ended March 31, 2004 at Rs 325 crore, even as the board decided to extend the accounting period for 2003-04 by six months up to September. The development finance institution had recorded a net profit of Rs 401 crore in 2002-03.