On a half yearly basis IDBI Bank has registered a 90.8 per cent decline in its net profit to Rs 1.8 crore for the first six month of the current fiscal as against Rs 19.49 crore in the corresponding period of the last fiscal.The board of directors announced the bank's audited half yearly result after the board meeting held here on Saturday.

IDBI Bank's managing director and chief executive officer Gunit Chadha said: ``IDBI Bank is the only new private sector bank to come out with audited half yearly results.''

IDBI Bank's core advances rose by 31 per cent to Rs 1,778.54 crore (Rs 1,355.96 crore), and its deposits increased by 23 per cent to Rs 3,972 crore (Rs 3,207.60 crore). The gross income and gross profit has shown an increase of 42 per cent and 15 per cent respectively in the current financial year.

Mr Chadha Said "the net profit has been impacted by the mark to market effect on the bank's investments and the decision taken by the bank to mark aggressively and some one-off provision in line with international best practices. Significantly, the net profit for the half year does not include pro-rata preference dividend income of Rs 9 crore on the bank's holding of preference shares.''

``The bank has embarked on a major re-engineering exercise and is in the process of rolling out various business and technology initiatives in the near future. This includes plans for building parallel retail banking business, improving credit profile of the customer advances and initiating steps to beef up treasury income.

Importantly, right talent is being sourced to head key positions. It expects its performance to rebound in the next six months and end the year with much improved result,'' Mr Chadha added.