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Question

1.Ratios like statistics have a set of principles and finality about them which at times may be misleading. Discuss with illustrations.
2.The true fund flow from deperciation is the opportunity saving of cash outflow through taxation. Illustrate with numerical examples.
3.Compare last five years balance sheet of IDBI. Critically evaluate the performance of IDBI.

Ratios like statistics have a set of principles and finality about them which at times may be misleading. Discuss with illustrations.

When learning statistics, it is easy to get bogged down in the details, and lose track of the big picture. Here are the twelve most important concepts in statistical inference.
Statistics lets you make general conclusions from limited data.
The whole point of inferential statistics is to extrapolate from limited data to make a general conclusion. "Descriptive statistics" simply describes data without reaching any general conclusions. But the challenging and difficult aspects of statistics are all about reaching general conclusions from limited data.
Statistics is not intuitive.
The word ‘intuitive’ has two meanings. One meaning is “easy to use and understand.” That was my goal when I wrote Intuitive Biostatistics. The other meaning of 'intuitive' is “instinctive, or acting on what one feels to be true even without reason.” Using this definition, statistical reasoning is far from intuitive. When thinking about data, intuition often leads us astray. People frequently see patterns in random data and often jump to unwarranted conclusions. Statistical rigor is needed to make valid conclusions from data.
Statistical conclusions are always presented in terms of probability.
"Statistics means never having to say you are certain."   If a statistical conclusion ever seems certain, you probably are misunderstanding something. The whole point of statistics is to quantify uncertainty.
All statistical tests are based on assumptions.
Every statistical inference is based on a list of assumptions. Don't try to interpret any statistical results until after you have reviewed that list. An assumption behind every statistical calculation is that the data were randomly sampled, or at least representative of, a larger population of values that could have been collected. If your data are not representative of a larger set of data you could have collected (but didn't), then statistical inference makes no sense.
Analyzing data requires many decisions.  Parametric or nonparametric test? Eliminate outliers or not? Transform the data first? Normalize to external control values? Adjust for covariates? Use weighting factors in regression? All these decisions (and more) should be part of experimental design. When decisions about statistical analysis are made after inspecting the data, it is too easy for statistical analysis to become a high-tech Ouja board -- a method to produce preordained results, rather an objective method of analyzing data.
A confidence interval quantifies precision, and is easy to interpret.
Say you've computed the mean of a set of values you've collected,or the proportion of subjects where some event happened. Those values describe the sample you've analyzed. But what about the overall population you sampled from? The true population mean (or proportion) might be higher, or it might be lower. The calculation of a 95% confidence interval takes into account sample size and scatter.  Given a set of assumptions,  you can be 95% sure that the confidence interval includes the true population value (which you could only know for sure by collecting an infinite amount of data). Of course, there is nothing special about 95% except tradition. Confidence intervals can be computed for any degree of desired confidence. Almost all results -- proportions, relative risks, odds ratios, means, differences between means, slopes, rate constants... -- should be accompanied with a confidence interval.
A P value tests a null hypothesis, and is hard to understand at first.
The logic of a P value seems strange at first. When testing whether two groups differ (different mean, different proportion, etc.), first hypothesize that the two populations are, in fact, identical. This is called the null hypothesis. Then ask: If the null hypothesis were true, how unlikely would it be to randomly obtain samples where the difference is as large (or even larger) than actually observed? If the P value is large, your data are consistent with the null hypothesis. If the P value is small, there is only a small chance that random chance would have created as large a difference as actually observed. This makes you question whether the null hypothesis is true.
"Statistically significant" does not mean the effect is large or scientifically important.
If the P value is less than 0.05 (an arbitrary, but well accepted threshold), the results are deemed to be statistically significant. That phrase sounds so definitive. But all it means is that, by chance alone, the difference (or association or correlation..) you observed (or one even larger) would happen less than 5% of the time. That's it. A tiny effect that is scientifically or clinically trivial can be statistically significant (especially with large samples). That conclusion can also be wrong, as you'll reach a conclusion that results are statistically significant 5% of the time just by chance.
"Not significantly different" does not mean the effect is absent, small or scientifically irrelevant.
If a difference is not statistically significant, you can conclude that the observed results are not inconsistent with the null hypothesis. Note the double negative. You cannot conclude that the null hypothesis is true. It is quite possible that the null hypothesis is false, and that there really is a difference between the populations. This is especially a problem with small sample sizes.  It makes sense to define a result as being statistically significant or not statistically significant when you need to make a decision based on this one result. Otherwise, the concept of statistical significance adds little to data analysis.
Multiple comparisons make it hard to interpret statistical results.
When many hypotheses are tested at once, the problem of multiple comparisons makes it very easy to be fooled. If 5% of tests will be "statistically significant" by chance, you expect lots of statistically significant results if you test many hypotheses. Special methods can be used to reduce the problem of  finding false, but statistically significant, results, but these methods also make it harder to find true effects. Multiple comparisons can be insidious. It is only possible to correctly interpret statistical analyses when all analyses are planned, and all planned analyses are conducted and reported. However, these simple rules are widely broken.
Correlation does not mean causation.
A statistically significant correlation or association between two variables may indicate that one variable causes the other. But it may just mean that both are influenced by a third variable. Or it may be a coincidence.
Published statistics tend to be optimistic.
By the time you read a paper, a great deal of selection has occurred. When experiments are successful, scientists continue the project. Lots of other projects get abandoned.When the project is done, scientists are more likely to write up projects that lead to remarkable results, or to keep analyzing the data in various ways to extract a "statistically significant" conclusion. Finally, journals are more likely to publish “positive” studies. If the null hypothesis were true, you would expect a statistically significant result in 5% of experiments. But those 5% are more likely to get published than the other 95%.
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The true fund flow from depreciation is the opportunity saving of cash outflow
through taxation. Illustrate with numerical examples.

Depreciation does not generate cash flow. If a million dollar piece of equipment is purchased, an accountant would reflect that the company now owns a million dollar asset. Without depreciation, the
company would still show a million dollar asset on the books even though we all know the equipment's value is decreasing. As such, the company's value would be overstated in the books.
- "Depreciation recognized for tax purposes will, however, affect the cash flow of the company, as tax depreciation will
done with straight line or MACRS.Additional comment -Regarding the first post: depreciation in accounting terms (amortization) is not meant to reflect the value of the asset. Rather, it is the gradual allocation of its cost to expense over its useful life.The fair market value of an asset may increase significantly over its original purchase price while at the same time its book value will decrease yearly due to depreciation.Strictly speaking, depreciation is a non-cash expense (no physical outflow of cash is involved). However, as mentioned above by others, it serves to reduce taxable income,
which, in turn, reduces the income tax paid

There are five ownership costs that every company incurs, namely: depreciation costs, interest costs, repair costs taxes, and insurance costs. They are commonly referred to as the "DIRTI 5".
a) Depreciation
This is a procedure for allocating the used up value of durable assets over the period they are owned by the business or until they are salvaged. By depreciating an asset, an allowance is made for the deterioration in the asset's value as a result of use (wear and tear), age and obsolescence. Generally, property is depreciable if it is used in business or to earn income;, wears out, decays, gets used up or becomes obsolete, and has a determinable useful life of more than one year. The proportion of the original cost to be depreciated in any one year is largely a matter of judgement and financial management. Normally, the depreciation allowance taken in any given year should reflect the actual decline in value of the asset - whether it is designed to influence income taxes or the undepreciated value of an asset reflecting the resale value of the asset.
There are four main and acceptable methods of calculating depreciation, namely:
• the accelerated cost recovery system (ACRS) method
• the straight line method
• the declining balance method
• the sum of the years-digits method.
The accelerated cost recovery system method is a relatively new method of calculating depreciation for tangible property. It came into use effectively in 1981. As a method ACRS generally gives much faster write off than other methods because it has tax savings as its primary objective. It usually gives little consideration to actual year-to-year change in value. Thus, for accounting purposes, other methods are more appropriate.
For tax purposes, property is classified as follows:-
i) 3 year property - automobiles and light-duty trucks used for business purposes and certain special tools, and depreciable property with a midpoint life of 4 years or less.
ii) 5 year property - most farm equipment, grain bins, single purpose structures and fences, breeding beef and dairy cattle, office equipment and office furniture.
iii) 10 year property- includes depreciable property with an expected life between 10 and 12.4 years.
iv) 15 year property - buildings.
The straight line method computes depreciation, Ds, as follows:

where:
OC = Original cost or basis
SV = Salvage value
L = expected useful life of the asset in the business.
Declining balance method calculates depreciation as:-
Dd = RV x R
where:
RV = undepreciated value of the asset at the start of the accounting period such that, in year 1, RV = OC, and in succeeding years,
RVi = [RVi-1 - Dd,i-1] x R (with salvage value not being deducted from original value before computing depreciation),
R = the depreciation rate, which may be up to twice the rate of decline, 1/L, allowed under straight line method.
Sum of the year-digits method estimates the depreciation of an asset as follows:-

where:
RY = estimated years of useful life remaining
S = sum of the numbers representing years of useful life (i.e. for an asset with 5 years useful life, S would be 1+2+3+4+5 = 15).
5 Computation of depreciation
Using the straight line, declining balance, and sum of the year-digits methods, compute and tabulate the depreciation of a \$1,000 asset with an estimated 10 years' life and projected salvage value of 10% of the original cost. (Assume for the declining balance method a depreciation rate calculated as 20% of the value at the beginning of the year. Usually the rate may not be greater than twice the rate which would be used under the straight line method).

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Compare last five years balance sheet of IDBI. Critically evaluate the
performance of IDBI.
Objectives
The main objectives of IDBI is to serve as the apex institution for term finance for industry in India. Its objectives include:
•   Co-ordination, regulation and supervision of the working of other financial institutions such as IFCI , ICICI, UTI, LIC, Commercial Banks and SFCs.
•   Supplementing the resources of other financial institutions and there by widening the scope of their assistance.
•   Planning, promotion and development of key industries and diversification of industrial growth.
•   Devising and enforcing a system of industrial growth that conforms to national priorities.

Functions
The IDBI has been established to perform the following functions-
•   To grant loans and advances to IFCI, SFCs or any other financial institution by way of refinancing of loans granted by such institutions which are repayable within 25 year.
•   To grant loans and advances to scheduled banks or state co-operative banks by way of refinancing of loans granted by such institutions which are repayable in 15 years.
•   To grant loans and advances to IFCI, SFCs, other institutions, scheduled banks, state co-operative banks by way of refinancing of loans granted by such institution to industrial concerns for exports.
•   To discount or re-discount bills of industrial concerns.
•   To underwrite or to subscribe to shares or debentures of industrial concerns.
•   To subscribe to or purchase stock, shares, bonds and debentures of other financial institutions.
•   To grant line of credit or loans and advances to other financial institutions such as IFCI, SFCs, etc.
•   To grant loans to any industrial concern.
•   To guarantee deferred payment due from any industrial concern.
•   To guarantee loans raised by industrial concerns in the market or from institutions.
•   To provide consultancy and merchant banking services in or outside India.
•   To provide technical, legal, marketing and administrative assistance to any industrial concern or person for promotion, management or expansion of any industry.
•   Planning, promoting and developing industries to fill up gaps in the industrial structure in India.
•   To act as trustee for the holders of debentures or other securities.
Functions. Various functions of or types of assistance to be provided by the IDBI are as follows:
(i) Direct Financial Assistance:
The IDBI provides direct financial assistance to the industrial concerns in the form of (a) granting loans and advances; and (b) subscribing to, purchasing or underwriting the issues of stocks, bonds or debentures.
(ii) Indirect Financial Assistance:
The IDBI provides indirect financial assistance to the small and medium industrial concerns through other financial institution, such as, State Finance Corporations, State Industrial Development Corporations, Cooperative banks, regional rural banks, commercial banks. The Assistance to these institutions include :(a) refinancing of loans given by the institutions; subscribing to their shares and bonds; (c) rediscounting of bills.
(iiI) Development Assistance:
The creation of the Development Assistance Fund is the special feature of the IDBI. The Fund is used to provide assistance to those industries which are not able to obtain funds in the normal course mainly because of heavy investment involved or low expected rate of returns. The financial resources of the Fund mainly come from contributions made by the government in the form of loans, gifts, donations, etc; and from other sources. Assistance from the Fund requires the prior approval by the government.
(iv) Promotional Function:
Besides providing financial assistance, the IDBI also undertakes various promotional activities such as marketing and investment research, techno- economic surveys. It provides technical and administrative advice for promotion, expansion and better management of the industrial concerns.

Functions of IDBI:
The main functions of IDBI are discussed below:
(i) To provide financial assistance to industrial enterprises.
(ii) To promote institutions engaged in industrial development.
(iii) To provide technical and administrative assistance for promotion management or expansion of industry.
(iv) To undertake market and investment research and surveys in connection with development of industry.
IDBI Assistance:
The IDBI provides financial assistance either directly or through some specified financial institutions:
(i) Direct Assistance:
The IDBI grants loans and advances to industrial concerns. There is no restriction on the upper or lower limits for assistance to any concern itself. The bank guarantees loans raised by industrial concerns in the open market from the State Co-operative Banks, the Scheduled Banks, the Industrial Finance Corporation of India (IFCI) and other ‘notified’ financial institutions.
(ii) Indirect Assistance:
The IDBI can refinance term loans to industrial concerns repayable within 3 to 25 years given by the IFCI, the State Financial Corporation and some other financial institutions and to SIDCs (State Industrial Development Corporations), Commercial banks and Co¬operative banks which extend term loans not exceeding 10 years to industrial concerns. IDBI subscribes to the shares and bonds of the financial institutions and thereby provide supplementary resources.
Developmental Activities of IDBI:
(1) Promotional Activities:
In fulfillment of its developmental role, the bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged.
These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs’ Parks, Energy Conservation, Common Quality Testing Centers for small industries.
(2) Technical Consultancy Organisations:
With a view to making available at a reasonable cost, consultancy and advisory services to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with other All-India Financial Institutions, has set up a network of Technical Consultancy Organisations (TCOs) covering the entire country. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their implementation and review.
(3) Entrepreneurship Development Institute:
Realising that entrepreneurship development is the key to industrial development; IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations in conducting studies or surveys of relevance to industrial development.
IDBI role as catalyst
IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio.
Development activities of IDBI and promotionl activities
In fulfilment of its developmental role, the Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs' Parks, Energy Conservation, Common Quality Testing Centres for small industries.
Evolution & Changing Role
The genesis of "Industrial Development Bank of India Limited" (IDBI Ltd.) can be traced to the establishment of The Industrial Development Bank of India (IDBI), its predecessor entity, in 1964, by an Act of Parliament to provide credit and other facilities for the development of industry. IDBI's charter was later broad-based to also encompass the responsibilities of principal financial institution for co-ordinating the working of National and State-level institutions engaged in financing, promoting and developing industry. Initially set up as a fully-owned subsidiary of the Reserve Bank of India (RBI), the ownership of IDBI was later transferred to the Government of India in 1976. Although Government shareholding in the Bank came down below 100% following IDBI's public issue in July 1995, the former continues to be the major shareholder(currentshareholding:51.4%).
Cumulative assistance sanctioned and disbursed by IDBI since inception up to end-September 2004 aggregated around Rs.2,23,000 crore and Rs 1,78,000 crore respectively. IDBI's asset base stood in the vicinity of Rs. 63,850 crore at end-September2004.
As a considered response to changes in its operating environment following initiation of reforms since the early nineties and the resultant concerns of IDBI's sustained viability therein in its current avatar, IDBI, in consultation with the Government of India, decided to transform into a commercial bank without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low-cost current/savings bank deposits, it was felt, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/asset base.
Towards this end, the IDBI (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament on December 16, 2003 and received the President's assent on December 30, 2003. The provisions of the Act came into force from July 2, 2004 in terms of a Government Notification to this effect. The Notification enabled IDBI to obtain the requisite statutory and regulatory approvals, including those from RBI, for conversion into a banking company. The new company viz. "Industrial Development Bank of India Limited" (IDBIL) was incorporated on September 27, 2004 and the Registrar of Companies, Mumbai, issued the certificate for commencement of business to IDBI Ltd. on September 28, 2004. Subsequently, the Central Government notified October 1, 2004 as the 'Appointed Date' and RBI issued the requisite notification on September 30, 2004 incorporating IDBI Ltd. as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, the erstwhile Development Financial Institution of the country, formally entered the portals of banking business as IDBIL from October 1, 2004, over and above the business currently being transacted.
IDBI Ltd. is registered as a company under the Companies Act, 1956 to carry out banking business in accordance with the provisions of the Banking Regulation Act, 1949. The IDBI Repeal Act, 2003 enabled IDBI to become a banking company without the need to obtain a separate banking licence under the Banking Regulation Act, 1949. IDBI Ltd. will enjoy certain regulatory forbearance, including exemption from compliance with SLR requirements (mandated under the Banking Regulation Act) for the first five years. All existing shareholders of the erstwhile IDBI, including the Central Government, have become pro-rata shareholders of IDBI Ltd. from the 'appointed date'. Further, the provisions of the Memorandum and Articles of Association of IDBI Ltd. require that the Central Government, as a shareholder of the Company, shall, at all times, maintain not less than 51% of the issued capital of the company.
The authorized capital of IDBI Ltd, has been reduced to Rs.1250 crore from Rs.1500 crore (the authorized capital of erstwhile IDBI) in conformity with the provision of the Banking Regulation Act. The paid-up capital of the Company, at Rs.653 crore, however, remains the same as the paid-up capital of the erstwhile IDBI
Role of Financial Institutions in Foreign Investment in India
The main role of the financial institutions in India in respect to foreign investments is to aid foreign investors in investment activities in India. The funds from overseas countries come in two forms: Foreign direct Investments and Joint Ventures of the foreign companies with Indian companies.
Foreign direct investments inflows are approved through automatic route or through government route. Those units that require government approval to get funds require the FIPB approval. Foreign Direct Investment through automatic route, on the other hand, does not require FIPB approval. All these allocation of financial assistance to various industrial units in India are guided by the financial institutions set up in various parts of India. Some of the leading financial institutions in India that play an important role in foreign investments in India are RBI, IDBI Bank, IFCI Bank, ICICI Limited and EXIM Bank.
Role of IDBI in Foreign Investment
The role of IDBI in Foreign Investment is mainly to provide financial assistance on a consortium basis to various industrial units in India which are mainly involved in manufacturing or processing of goods, mining, transport generation and distribution of power.
Main Functions of IDBI
•   IDBI coordinates between various financial institutions who are highly involved in provide financial assistance, promoting, and developing various industrial units
•   IDBI is also engaged in a variety of promotional activities such as development programs for the fresh entrepreneurs, planning of consultancy services for both the small scale enterprises and the medium sized industrial units
•   IDBI works for the advancement of technology and other welfare schemes to ensure economic development.
•   Industrial Development Bank of India acts as a catalyst in various industrial development programs
•   IDBI provides financial assistance to all kinds of industrial units which comes under the provisions of the IDBI Act
•   IDBI has served various industrial sectors in India for about three years and has grown leaps and bounds in its size and operating units
Role of IDBI in Foreign Investment
•   It manages various financial institutions working under IDBI bank
•   Provides financial assistance to various industrial units in terms of developments
•   It also offers refinancing options including term loans to the suitable financial institutions
•   It provides funding to the industrial units that are involved in manufacture or processing of goods, mining, transport generation and distribution of power both in private and public sectors
It also provides finance to various projects, expansion of any project, diversifications, or even developing the projects which will exceed Rs. 30 million and it also provides funding to those projects which cost less than Rs. 30 million through indirect means as it offers refinancing to the main financial institutions such as SFC/SIDC/Commercial Banks
IDBI Bank July-Sep net up 57 pct, beats f'cast
State-owned IDBI Ltd on Monday posted a 57 percent rise in July-September net profit, helped by growth in both the net interest income and fee-based income, beating analyst forecasts. Net profit of the bank for the second quarter was at 2.54 billion rupees, up from 1.62 billion rupees a year ago. A Reuters poll of brokerages had estimated profits at 1.95 billion rupees. "Profitability grew on the back of good growth in the net interest income and fee-based income front," Yogesh Agarwal, chairman and managing director, told reporters at a press conference.
The bank's net interest income rose to 4.72 billion rupees, up from 1.29 billion rupees a year ago, while fee-based income rose 99 percent to 3.90 billion rupees. Its net interest margin rose to 1.07 percent, up from 0.41 percent a year ago with cost of deposits coming down as high cost deposits were getting retired, Agarwal said. "Core income helped profits grow for the bank," said an analyst in a Mumbai-based brokerage, on condition of anonymity. The bank, with a capital adequacy ratio of 11.9 percent, is waiting for government approval to raise funds for growth.
"Government owns around 52 percent in the bank and it will have to take a call on modes of capital-raising to be made available to the bank," he said. "We hope to tap the (capital) market by January 2010, subject to government deciding on mode of capital raising to be adopted by the bank," he said. Its capital adequacy at tier I level was at 6.83 percent, while that in the tier II segment was at 5.07 percent. The bank will also raise \$225 million via syndicated loans to meet its growth targets, R.K. Bansal, chief financial officer, said adding the bank is targeting a loan growth of 20 percent in the current fiscal. "We will be signing for this foreign currency loan tomorrow," he said. The loan will be for a one-year tenure with an all-inclusive cost of 6.2 percent.
The bank which would open its first foreign branch in Dubai has an enabling resolution to raise up to \$1.5 billion via medium term notes in foreign currency, Bansal said adding it can be raised only after the lender has a foreign presence as per Reserve Bank of India guidelines.
The cash strapped Industrial Development Bank of India (IDBI), has got a line of credit of \$100 million from the Asian Development Bank (ADB). The institution has also reached the final stages of an arrangement with KfW of Germany for co-financing of infrastructure projects along with the line of credit (LoC)from ADB. This comes as a great help to the FI at a time when it is starved of funds. The funds will be lent against private infrastructure projects in four states namely Karnataka, Andhra Pradesh, Gujarat and Madhya Pradesh. In fact, IDBI is not the only institution to have got it. IIL & FS too has got a \$100 million LoC from ADB.
The duration of loan from ADB will be 20 years on a floating rate basis. It will be lent at LIBOR plus 60 basis point. The boards of ADB and both the FIs have cleared the loan proposal and the signing of the documents will take place in the next 10 to 15 days. The KfW deal is being negotiated and is likely to be taken up at the latest Indo-German meeting. KfW is a development bank for developing countries that operate on behalf of the German Government. The rates in the case of KfW are likely to be very close to the rates offered by ADB. But in the case of KfW, the tenure of the payments is going to be longer in the range of 25 years.
In fact, the borrowings of IDBI have been growing sharply. From Rs. 37,861 crore in 1997, it has gone up to Rs. 56,057 crore as on June 30, 2001. Of this, the borrowings outside India had grown from Rs. 5660 crore in 1997 to Rs. 7,913 crore as on June 30, 2001. In fact, IDBI along with NABARD have been requesting the RBI and the Government to extend the tenure of long-term operations funds availed by the institution from the RBI till 1990. These were taken off following the start of economic reforms in 1991.
BALANCE  SHEET  OF IDBI  2007-2012

IDBI Bank   Previous Years »

Standalone Profit & Loss account   ------------------- in Rs. Cr. -------------------
Mar '14   Mar '13   Mar '12   Mar '11   Mar '10

12 mths   12 mths   12 mths   12 mths   12 mths

Income
Interest Earned   26,597.51   25,064.30   23,369.93   18,600.82   15,272.63
Other Income   2,978.75   3,219.51   2,009.54   2,103.56   2,341.96
Total Income   29,576.26   28,283.81   25,379.47   20,704.38   17,614.59
Expenditure
Interest expended   20,576.04   19,691.19   18,825.08   14,271.93   13,005.22
Employee Cost   1,491.61   1,538.50   1,160.44   1,026.50   756.99
Selling, Admin & Misc Expenses   6,274.05   5,047.92   3,383.54   3,628.60   2,730.27
Depreciation   113.17   124.12   116.06   127.04   90.98
Preoperative Exp Capitalised   0.00   0.00   0.00   0.00   0.00
Operating Expenses   3,318.84   3,134.37   3,567.82   3,509.84   2,067.76
Provisions & Contingencies   4,559.99   3,576.17   1,092.22   1,272.30   1,510.48
Total Expenses   28,454.87   26,401.73   23,485.12   19,054.07   16,583.46
Mar '14   Mar '13   Mar '12   Mar '11   Mar '10

12 mths   12 mths   12 mths   12 mths   12 mths

Net Profit for the Year   1,121.40   1,882.08   1,894.34   1,650.32   1,031.13
Extraordinary Items   0.00   0.00   137.25   0.00   0.00
Profit brought forward   903.86   672.65   615.02   470.40   71.20
Total   2,025.26   2,554.73   2,646.61   2,120.72   1,102.33
Preference Dividend   0.00   0.00   0.00   0.00   0.00
Equity Dividend   160.41   466.47   388.68   344.60   217.46
Corporate Dividend Tax   27.77   71.75   60.33   55.27   31.47
Per share data (annualised)
Earning Per Share (Rs)   6.99   14.12   14.82   16.76   14.23
Equity Dividend (%)   10.00   35.00   35.00   35.00   30.00
Book Value (Rs)   147.38   159.33   137.47   128.69   113.50
Appropriations
Transfer to Statutory Reserves   540.32   962.65   774.95   514.55   283.00
Transfer to Other Reserves   399.99   150.00   750.01   600.00   100.00
Proposed Dividend/Transfer to Govt   188.18   538.22   449.01   399.87   248.93
Balance c/f to Balance Sheet   896.77   903.86   672.65   606.30   470.40
Total   2,025.26   2,554.73   2,646.62   2,120.72   1,102.33

Source : Dion Global Solutions Limited

IDBI Bank   Previous Years »

Standalone Balance Sheet   ------------------- in Rs. Cr. -------------------
Mar '14   Mar '13   Mar '12   Mar '11   Mar '10

12 mths   12 mths   12 mths   12 mths   12 mths

Capital and Liabilities:
Total Share Capital   1,603.94   1,332.75   1,278.38   984.57   724.86
Equity Share Capital   1,603.94   1,332.75   1,278.38   984.57   724.86
Share Application Money   0.45   0.77   0.00   0.99   0.00
Preference Share Capital   0.00   0.00   0.00   0.00   0.00
Reserves   22,034.92   19,902.51   16,295.61   11,686.25   7,502.26
Net Worth   23,639.31   21,236.03   17,573.99   12,671.81   8,227.12
Deposits   235,773.63   227,116.47   210,492.56   180,485.79   167,667.08
Borrowings   60,146.29   65,808.87   53,477.64   51,569.65   47,709.48
Total Debt   295,919.92   292,925.34   263,970.20   232,055.44   215,376.56
Other Liabilities & Provisions   9,437.40   8,607.14   7,439.12   6,753.77   8,030.62
Total Liabilities   328,996.63   322,768.51   288,983.31   251,481.02   231,634.30
Mar '14   Mar '13   Mar '12   Mar '11   Mar '10

12 mths   12 mths   12 mths   12 mths   12 mths

Assets
Cash & Balances with RBI   12,711.11   10,543.95   15,090.21   19,559.05   13,903.47
Balance with Banks, Money at Call   4,106.80   7,380.57   2,967.44   1,207.03   679.36
Advances   197,686.00   196,306.45   181,158.43   157,098.07   138,201.85
Investments   103,773.50   98,800.93   83,175.36   68,269.18   73,345.46
Gross Block   2,963.06   2,908.56   4,548.74   4,375.10   4,085.27
Revaluation Reserves   0.00   0.00   1,853.93   1,895.77   1,937.72
Accumulated Depreciation   0.00   0.00   1,554.43   1,405.82   1,250.35
Net Block   2,963.06   2,908.56   1,140.38   1,073.51   897.20
Capital Work In Progress   20.14   16.72   24.50   68.06   162.04
Other Assets   7,736.01   6,811.32   5,426.98   4,206.13   4,444.91
Total Assets   328,996.62   322,768.50   288,983.30   251,481.03   231,634.29

Contingent Liabilities   196,540.68   187,819.01   122,965.13   108,278.85   101,597.45
Bills for collection   0.00   0.00   31,232.30   29,995.93   26,695.59
Book Value (Rs)   147.38   159.33   137.47   128.69   113.50

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