Announcing the audited results, IDBI Bank managing director DK Mukerjee said in Mumbai on Thursday the bank will enter the capital market in the second half of the current fiscal year with a Rs 40-crore public issue. The maiden public issue will pave the path for dilution of stakes of Industrial Development Bank of India and the Sidbi in the bank. Currently, both the insitutions hold 80 per cent and 20 per cent stakes, respectively.

In 1997-98, IDBI Bank's deposits grew three-fold from Rs 505.2 crore to Rs 1845.5 crore while the advance portfolio grew from Rs 495.4 crore to Rs 843 crore. The investments grew by Rs 847.6 crore as against Rs 195.8 crore in the previous year. The bank's total income grew by Rs 166.88 crore asagainst Rs 49.93 crore last year. Out of this, the interest income increased to Rs 149.25 crore, compared with Rs 43.8 crore in the previous year.

The bank's net non-performing assets (NPA) dropped to 0.3 per cent of its net advances from 1 per cent in the previous year. IBDI Bank's capital adequacy stood at 9.82 per cent in March 1998 as against 17.9 per cent last year. "We have comfortable capital adequacy," Mukerjee said.

The bank proposes to extend its branch network by seven branches, taking the number of branches to 25 in the current fiscal.