The Industrial Development Bank of India on Thursday reported a 18.95 per cent drop in net profit for the 12 month period ended March 31, 2004 at Rs 325 crore (Rs 3.25 billion), even as the board decided to extend the accounting period for 2003-04 by six months upto September.

Profit has been achieved despite providing for bad and doubtful debts and investments of Rs 1,540 crore (Rs 15.40 billion), 39 per cent more than Rs 1,110 crore (Rs 11.10 billion) in 2002-03, IDBI said in a release.

The development finance institution had recorded a net profit of Rs 401 crore (Rs 4.01 billion) in FY03.

IDBI, on extending the accounting period, said this has been done to avoid the closing and balancing of its books and accounts twice over -- once on March 31, 2004 and again on the appointed date of conversion into a banking company -- and hence prior approval has been taken from the board and the government.

The board approved the fourth quarter and 2003-04 results and decided to treat it as an interim accounting period.

Total income was higher by 39.64 per cent at Rs 6,978 crore (Rs 69.78 billion) for the period under review as compared to Rs 4,997 crore (Rs 49.97 billion) in FY03.

For the three-month period ending March 31, net profit fell to Rs 102 crore (Rs 1.02 billion) as against Rs 209 crore (Rs 2.09 billion) in the corresponding period of FY03, on a total income of Rs 1,972 crore (Rs 19.72 billion), marginally higher than Rs 1,903 crore (Rs 19.03 billion) in Q4 of FY03.