The board of directors has announced a hike in dividend to 45 per cent from 35 per cent in 1996-97. Overall sanctions during the year registered a 41.9 per cent growth to Rs 24,198 crore mainly due to larger assistance provided to infrastructure sector and assistance under the newly introduced working capital/short term loans. The total disbursements also rose 32.6 per cent growth to Rs 15,165 crore during the year.

The total NPA of IDBI has gone up to Rs 5,101 crore from Rs 4,365 crore in the previous year. Out of the total outstanding loan portfolio, IDBI's NPA consisting of doubtful and substandard assetsaccounted for 10.1 per cent. The institution has written off a whopping Rs 167 crore substandard assets during the year (3.1 per cent). ``A large segment of manufacturing sector has been passing through difficult conditions during the last two years, which is reflected in the NPA level,'' said IDBI Chairman S H Khan.

Including the written off loss assets (loans which are classified as not recoverable) the NPA would have gone up to Rs 5,268 crore. ``The bulk of these NPAs belong to the sub-standard category. I'm not satisfied with the NPA level. It should come down. But our NPA level is within the internationally recognised limits. Many of the units which had a good track record defaulted in loan repayment,'' Khan said, adding, ``Once the manufacturing sector revives, the NPA level will come down.''

The institution's pre-tax profit for the year registered a 21.5 per cent growth to Rs 1,800 crore. The gross profit registered a 20.3 per cent increase at Rs 1972 crore (up from Rs 1633 crore). ``The growth insanctions has been mainly due to the increased lending to infrastructure projects. After appropriations in reserves and reserve funds, the board has proposed a hike in the dividend to 45 per cent from 35 per cent. The dividend on the equity share capital amounted to Rs 302.8 crore,'' Khan said.

Total assets of the bank increased by 19.1 per cent to Rs 59,957 crore (Rs 50,328.9 crore) while the net worth recorded a rise of 13.7 per cent to Rs 8,003 crore (Rs 7,119 crore). He said for 1998-98, IDBI was aiming to maintain a growth of 20 to 25 per cent (sanctions and disbursements) focussing on infrastructure financing. About 44 per cent of total sanctions during the year, amounting to Rs 7000 crore, was for infrastructure projects mainly power projects.

``Our growth has been well within the exposure norms. We have achieved growth by meeting all the prudential norms. The single largest exposure to a single company is only 12.3 per cent of our total networth which can go up to 25 per cent giving enough scopefor growth. The exposure to a single industrial group is 20.6 per cent,'' he added. About the Rs 4,000 crore guarantees given by IDBI, he said, except Rs 150 crore guarantee, the entire amount has been for project related matters.