In the first half of the current fiscal, IDBI had posted a Rs 705 crore net profit out of which first quarter accounted for Rs 361 crore. In other words, IDBI's quarterly net profits have been progressively declining in fiscal 1999 (April-June: Rs 361 crore, July-September: 344 crore; October-December: Rs 303 crore). If the trend continues, IDBI may end up posting a negative growth in its net profit in 1998-99. In the previous year, the term lending institution had posted a net profit of Rs 1501 crore. IDBI officials were not available for comment.

The institution's total incomefor the third quarter of the current fiscal amounted to Rs 1,930 crore while its total expenditure stood at Rs 1,570 crore for the same period. Total expenditure in April-December was to the tune of Rs 4,404 crore. Gross profit -- after interest but before depreciation and tax -- amounted to Rs 1,249 crore. After making provision for depreciation (Rs 51 crore) and tax (Rs 6 crore), the net profit for the period stood at Rs 1,008 crore.

Although the institution's overall sanctions during April-December 1998 registered a 25.7 per cent growth at Rs 19,924 crore, up from Rs 15,856 crore in the corresponding period of 1997, disbursements grew at a snail's pace. In the first three quarters, disbursements grew at Rs 9,346 crore, up from Rs 9,253 crore in the corresponding period of the previous year. In fiscal 1998, IDBI had posted a massive 32.6 per cent growth in disbursements (Rs 15,165 crore).

Analysts have attributed IDBI's "cautious approach in the face of rising non-performing assets" to the tardy growthin disbursements. The IDBI release on Monday did not mention the April-December NPA figures.

Industry-wise, the share of electricity generation in overall assistance approved was the highest at 36.8 per cent, followed by chemicals and chemical products (14.3 per cent), textiles (6.4 per cent) and iron and steel (4.5 per cent). The sharp increase in assistance to electricity generation was due to 16 large projects which were extended assistance during April-December 1998.

The total rupee resources raised by way of borrowings during April-December 1998 aggregated nearly Rs 12620 crore. The second tranche of Public Issuance of Bonds (Flexibond- series 5) during the current financial year, mobilised Rs 1510 crore as against the target of Rs 750 crore, representing an improvement over the Rs 1343 crore in the first trance during September-October 1998.