Industrial Development Bank of India has posted a 8.69 per cent rise in net profit at Rs 125 crore (Rs 1.25 billion) for the second quarter ended September 30, 2003, compared to Rs 115 crore (Rs 1.15 billion) recorded in same period previous fiscal.

Income from operations in the period under review has decreased to Rs 1,720 crore (Rs 17.20 billion) from Rs 2,035 crore (Rs 20.35 billion) in Q2 of last year, IDBI said in a release in Mumbai on Wednesday.

For the first half ended September, the financial institution has recorded a net profit and income from operations of Rs 176 crore (Rs 1.76 billion) [Rs 152 crore (Rs 1.52 billion) in H1 of last year] and Rs 3,295 crore (Rs 32.95 billion) [Rs 3,700 crore (Rs 37 billion)], respectively, it said.

Referring to the business outlook, IDBI's chairman and managing director M Damodaran said there was a consensual expectation of a pronounced uptrend in overall growth prospects for 2003-04 relative to previous year, based on emerging trends in various economic performance indicators.

Apart from manufacturing sector, the current financial year was witnessing strong signs of revival of some old economy sectors like steel, cement and construction, he said.

"There is measured optimism that the observed vitality in economic performance and emergence of a conducive investment climate would translate into an improvement in IDBI's operations and asset quality in FY-04," he added.