Indicating the continuing industrial recession and rising non-performing assets (NPAs), IDBI has reported a nearly 30 per cent fall in the net profit in the first half of the current year to Rs 496 crore as compared to Rs 705 crore in the first half of last year. The decline in profit is attributed to lower growth in income from operations and higher write-offs/provisions coupled with increase in interest expenses consequent upon redemption of low cost borrowings.

IDBI's disbursement has gone up modestly by 9.1 per cent from Rs 6,618 crore to Rs 7,218 crore during the half year of the current fiscal. The sanctions of assistance under all the schemes during April-September 1999 have expanded marginally by 3.1 per cent from Rs 12,988crore to Rs 13,395 crore.

The expenses of IDBI has increased by nearly 12 per cent in the second quarter, compared to the same period in 1998-99, to Rs 1,656 crore. For the half year, the expense element increased by 15 per cent to Rs 3,266 crore this year. The institution's total income during the first half of the current fiscal amounted to Rs 3,390 crore as against Rs 3,690 crore during the corresponding period of the previous year.

IDBI's spread is thinning on account of the rise of interest expenses during the first quarter of 2000, analysts said. IDBI's profits have been falling in the last two years. Its net profit had slumped by 15 per cent to Rs 1,259 crore during 1998-99 from Rs 1,501 crore in the previous fiscal.

``The slowdown in the economy continues to affect the overall investment scenario in the country. Unlike ICICI, IDBI's performance totally depends upon investments in the core sector. At present, the power sector is the only one to have propensity to have fresh investments, but ithas been further delayed due to various technical snags,'' analysts said.