IndisInd Bank got the stick from the market on Monday after it recorded a 64% drop in net profit.

By 10:22 IST, the scrip of the private sector bank flopped 8.12% to Rs 18.10 on volumes of 17,460 shares on BSE.

For the fourth quarter ended 31 March 2003, IndusInd Bank turned out a massive 64% drop in net profit to Rs 3.66 crore on a 9% decline in total income to Rs 290.11 crore (Rs 2.9 billion). The slump in net profit was due to the 38.5% fall in other income.

For the full year though, the company registered a 40.6% rise in net profit to Rs 71.35 crore on a 10.5% increase in total income to Rs 988.50 crore (Rs 9.88 billion).

IndusInd Bank was incorporated in January 1994. It was promoted by IndusInd Enterprises and Finance and five Mauritius based companies viz. IndusInd International Holdings, IndusInd (Mauritius) Holdings, IndusInd, IndusInd Investments & DeFive Mauritius Holdings.

The bank has diversified customer base comprising top quality clients - prime PSUs and blue-chip companies in the corporate sector and high net-worth individuals in the retail segment, including a significant customer base of NRIs. It has strong focus on wholesale clients. Over 90% of the incremental credit has been to blue-chip companies and well performing PSUs.

The bank's capital adequacy ratio as on March 2003 stood at 12.3% as against 12.5% as on March 2002. The minimum CAR requirement as per Reserve Bank of India for banks is 9%.

The board of directors has maintained the dividend at 14% for the year ended March 2003, subject to approval of shareholders. The effective dividend however, works out higher, at 15.9% to the shareholders, as the dividend tax will be absorbed by the bank and the dividend amount will be tax-free in the hands of the shareholders.

The focus of the bank in 2003-2004 will be on retail banking. Some of the major initiatives for increasing retail banking will include the widening of the bank's direct sales and marketing network, new tie-ups for distribution of life and non-life insurance products, focus on NRI business, special products for high net worth individuals and the launch of debit cards. During the year, the bank also received permission to establish an overseas presence through representative offices in Dubai and London. The bank has embarked aggressively on a brand building exercise having emphasis on "Quality Assured Service" to all its customers.

As on 31 March 2003, promoters held 49.86% stakes, while public and institutions held 23.47% and 3.03% respectively.