DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus
Intermediate Municipal Bond Fund, Inc. for its fiscal year ended May 31,
1997. Your Fund produced a total return, including bond price changes and
interest income, of 6.80%.* The Fund's tax-free annualized distribution rate
per share was 5.06%.** (Some income may be subject to the Federal Alternative
Minimum Tax for certain shareholders).
ECONOMIC REVIEW
Plentiful jobs and low inflation spurred consumer confidence to its
highest level in 27 years by the end of the reporting period, May 31, 1997.
Economic growth surged 5.6% in the first quarter of this year, sharply higher
than the 3.8% rate in the last quarter of 1996. With unemployment at its
lowest level in 23 years, there was fear that without some preemptive
tightening in monetary policy, inflationary pressures would resume. As a
precaution, in March 1997, the Federal Open Market Committee (the "FOMC"),
the policy-making arm of the Federal Reserve Board (the "Fed"), raised the
Federal Funds rate one quarter of a percentage point to 5.50%. It was the
first hike in short-term rates in over two years. (The Federal Funds rate is
the rate of interest banks charge each other for overnight loans.) Fed
Chairman Greenspan likened the increase to "the small immediate discomfort of
a vaccination against the possibility of getting a serious disease."
Subsequent to the March rate increase, signs of inventory accumulation and
some moderation in retail sales may have helped stay the Fed from
implementing additional increases in short-term interest rates.
The great difference between the present economic recovery and previous
ones is the absence of inflation. The economy is now in its seventh year of
expansion, an expansion devoid of any appreciable resurgence in inflation.
The Producer Price Index, a measure of prices paid by manufacturers and an
indicator of so-called pipeline inflation, declined over the first four
months of this year and has risen less than 1% over the previous twelve
months. The rise in inflation on the consumer level has been similarly
subdued. The Consumer Price Index increased a modest 2.5% over the
twelve-month period ending in April.
On another front, the tight labor market has spawned fears that rising
wages would provide an inflationary stimulus to the economy. So far, this has
not occurred. The Employment Cost Index, a gauge of wage and benefit
increases, has remained below 3%. The bipartisan budget agreement recently
reached between the Clinton Administration and the Republican Congressional
leadership has also eased inflationary fears.
The economic confidence of consumers is readily understandable. The
exceptionally low unemployment rate has combined with a strong economy that
has expanded with unusual vigor. But, despite huge business investment in
technology to improve productivity, it would be folly to assume that the
economy's capacity for noninflationary growth is unlimited. Consumers
enjoying both job stability and rising personal incomes could increase their
spending to levels that would strain production and bring on inflation; or
the Fed could again tighten credit, perhaps in another precautionary move.
MARKET ENVIRONMENT
The changing outlook for the economy has been vividly reflected in the
volatility that the fixed income markets have experienced over the past year.
After a strong close to 1996, which confirmed the opinion that inflation was
contained, early 1997 refocused on a strong labor market and the effects of
wage pressures on the economy. As the economy continued to expand, investors
became convinced of an imminent tightening of monetary policy by the FOMC.
During this time, interest rates moved up to levels that were last seen
during July 1996, and exceeded the 7% level in long-term Treasuries. Although
it was assumed that most of the anticipated tightening had been reflected in
the market, prices continued to erode during this time period. The sentiment
reversed once again as second quarter numbers indicated a slowing economy.
The supply of municipals has been moderate and most offerings that have
come to market have been very well received, as retail demand has remained
strong. The combined technical factors of high demand and limited supply
enabled the municipal market to turn in a strong performance compared to the
taxable fixed-income markets. This is illustrated by a comparison of the
movement of 30- year U.S. Treasury Bond yields and municipal yields as
represented by The Bond Buyer 25 Bond Revenue Index (the "Revenue Index").
While interest rates fluctuated significantly over the course of the year
ended May 31, 1997, 30-year Treasury yields closed the period 10 basis points
(.10%) lower at 6.90%. Over the same time, the Revenue Index declined by 30
basis points (.30%) to close the period at 5.91%, which represents a taxable
equivalent yield of 8.20%, assuming a 28% Federal income tax bracket.
(Remember, fund yields and asset values do fluctuate; past performance is no
guaranteee of future results, and actual results for a fund will vary from an
index).
PORTFOLIO OVERVIEW
Some of the most dramatic changes in the municipal market occurred in
spread relationships, and the flattening of the yield curve. In the ongoing
quest for yield, lower-rated issues have become relatively expensive compared
to higher quality paper. As the yield curve flattened, we focused our
investments in the areas that we felt picked up the most value without
exposing the portfolio to undue volatility. The availability of high yield
paper has been very limited . Holdings such as New York City have been among
the best performing issues during this year. As spreads compressed, we took
advantage of this and moved out of lower rated, short call paper and into
issues possessing better structure and quality. During weakness in the
cycles, we opted to add out-of-favor discount paper, which has added to the
Fund's performance as rates declined. The ongoing intention has been to add
paper that provides ample liquidity and extends call protection.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period, adjusted for any capital gain
distributions.
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC. MAY 31, 1997
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS INTERMEDIATE
MUNICIPAL BOND FUND, INC. AND
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
Dollars
$22,119
Lehman Brothers 10-Year Municipal Bond Index*
$20,046
Dreyfus Intermediate
Municipal Bond Fund
*Source: Lehman Brothers
[Exhibit A]
<TABLE>
Average Annual Total Returns
One Year Ended Five Years Ended Ten Years Ended
May 31, 1997 May 31, 1997 May 31, 1997
_______________ __________________ ______________
<S> <C> <C> <C>
6.80% 6.32% 7.20%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Intermediate
Municipal Bond Fund, Inc. on 5/31/87 to a $10,000 investment made in the
Lehman Brothers 10-Year Municipal Bond Index on that date. All dividends and
capital gain distributions are reinvested.
The Fund invests primarily in municipal securities and maintains a portfolio
with a weighted-average maturity ranging between 3 and 10 years. The Fund's
performance shown in the line graph takes into account fees and expenses.
Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index is an
unmanaged total return performance benchmark for the investment-grade,
10-year tax exempt bond market, consisting of municipal bonds with maturities
of 9-12 years. The Index does not take into account charges, fees and other
expenses which can contribute to the Index potentially outperforming the
Fund. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
<TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31, 1997
Principal
Long-Term Municipal Investments_95.1% Amount Value
___________ ___________
<S> <C> <C>
Alaska_2.1%
Alaska Industrial Development and Export Authority, Revolving Fund:
7.80%, 4/1/2004........................................................... $ 6,360,000 $ 6,941,558
6.375%, 4/1/2008.......................................................... 3,000,000 3,212,220
Alaska Housing Finance Corp., Refunding 5.75%, 12/1/2009 (Insured; MBIA).... 13,100,000 13,216,852
Anchorage Electric Utility Revenue, Refunding:
6.50%, 12/1/2008 (Insured; MBIA).......................................... 2,755,000 3,099,044
6.50%, 12/1/2009 (Insured; MBIA).......................................... 2,910,000 3,281,782
Arizona_2.5%
Greenlee County Industrial Development Authority, PCR
(Refunding_Phelps Dodge Corp. Project) 5.45%, 6/1/2009.................... 11,410,000 11,490,669
Maricopa County Industrial Development Authority:
Hospital Facility Revenue (Samaritan Health Services)
7.15%, 12/1/2004 (Insured; MBIA)........................................ 9,835,000 11,193,214
Hospital Systems Revenue, Refunding (Baptist Hospital):
5.10%, 9/1/2004 (Insured; MBIA)......................................... 3,490,000 3,552,157
5.20%, 9/1/2005 (Insured; MBIA)......................................... 3,125,000 3,197,344
Mesa Industrial Development Authority, Industrial Revenue
(TRW Vehicle Safety Systems, Inc. Project) 7.25%, 10/15/2004.............. 5,000,000 5,287,750
California_5.9%
California State, Refunding 5.25%, 6/1/2011................................. 12,445,000 12,438,902
California Department of Veteran Affairs, Home Purchase Revenue 7.80%, 8/1/2001 5,000,000 5,249,800
California Higher Education Loan Authority, Student Loan Revenue, Refunding:
6.40%, 12/1/2003.......................................................... 6,000,000 6,423,660
6.50%, 6/1/2005........................................................... 5,500,000 5,931,860
California Public Works Board, LR, Refunding (Department of
Corrections-Imperial County)
5.125%, 9/1/2009 (Insured; MBIA).......................................... 5,750,000 5,769,090
California Student Loan Marketing Corp., Student Loan Revenue:
Series III-D-1, 6.70%, 7/1/2008........................................... 2,500,000 2,577,125
Series III-D-2, 6.75%, 7/1/2008........................................... 2,500,000 2,586,600
Contra Costa County, COP, Refunding (Merrithew Memorial Hospital)
5.25%, 11/1/2010 (Insured; MBIA).......................................... 5,400,000 5,379,156
Los Angeles, Harbor Department Revenue 6.40%, 8/1/2012...................... 5,420,000 5,775,064
Northern California Power Agency, Geothermal Project Number 3, Revenue, Refunding:
5.50%, 7/1/2005........................................................... 7,000,000 7,187,950
5.65%, 7/1/2007........................................................... 12,400,000 12,783,904
Solano County, COP, Refunding (Justice Facility and Public Buildings Project)
5.875%, 10/1/2005......................................................... 10,000,000 10,336,300
Colorado_2.9%
Arapahoe County Capital Improvement Trust Fund, Highway Revenue
Zero Coupon, 8/31/2008.................................................... 20,165,000 10,352,711
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
Colorado (continued)
Denver City and County, Airport Revenue:
7.50%, 11/15/2002......................................................... $ 6,080,000 $ 6,681,981
8.75%, 11/15/2005......................................................... 14,485,000 17,064,634
El Paso County School District (Number 11 Colorado Springs):
6.25%, 12/1/2009.......................................................... 1,000,000 1,100,970
6.50%, 12/1/2010.......................................................... 2,000,000 2,240,680
6.50%, 12/1/2011.......................................................... 2,040,000 2,288,880
Connecticut_1.1%
Connecticut:
5.50%, 3/15/2008.......................................................... 4,000,000 4,118,320
Special Revenue (Mashantucket Western Pequot Tribe) 6.50%, 9/1/2006 (a)... 5,000,000 5,360,150
Connecticut Housing Finance Authority, Housing Mortgage Finance Program
7.30%, 11/15/2003......................................................... 5,705,000 5,892,695
District of Columbia_2.2%
District of Columbia, Refunding 4.90%, 6/1/2000............................. 20,000,000 19,819,200
District of Columbia, Revenue (American University) 5.50%, 10/1/2011 (Insured; AMBAC) 5,435,000 5,448,207
Metropolitan Airports Authority, Virginia General Airport Revenue
5.75%, 10/1/2011 (Insured; MBIA).......................................... 5,750,000 5,857,583
Florida_4.1%
Dade County:
Aviation Revenue 5.90%, 10/1/2005 (Insured; AMBAC)........................ 10,830,000 11,452,400
Resource Recovery Facility Revenue, Refunding
5.20%, 10/1/2005 (Insured; AMBAC)....................................... 7,880,000 7,991,187
Dade County School Board, COP 5.375%, 5/1/2010 (Insured; AMBAC)............. 4,775,000 4,814,012
Florida School Boards Association, LR (Orange County School Board Project)
6.25%, 7/1/2005 (Insured; AMBAC).......................................... 3,250,000 3,419,195
Greater Orlando Aviation Authority, Airport Facilities Revenue
6.40%, 10/1/2004 (Insured; FGIC).......................................... 8,940,000 9,643,399
Jacksonville Electric Authority, Saint Johns River Power Park, Revenue, Refunding
5.50%, 10/1/2006.......................................................... 6,000,000 6,282,720
Palm Beach County, Solid Waste IDR (Okeelanta Power L.P. Project)
6.50%, 2/15/2009 (b)...................................................... 3,600,000 2,268,000
Pinellas County, RRR 5.10%, 10/1/2003 (Insured; MBIA)....................... 10,415,000 10,532,273
Georgia_.4%
Atlanta, Airport Facilities Revenue, Refunding 6%, 1/1/2007 (Insured; AMBAC) 5,780,000 6,236,215
Hawaii_.2%
Hawaii, Airports Systems Revenue 7.50%, 7/1/2005 (Insured; FGIC)............ 3,000,000 3,291,870
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
Illinois_5.9%
Carol Stream, First Mortgage, Revenue, Refunding (Windsor Park Manor Project):
5.50%, 12/1/1998.......................................................... $ 520,000 $ 518,315
6.50%, 12/1/2007.......................................................... 3,000,000 2,992,320
Chicago O'Hare International Airport:
Passenger Facility Charge Revenue 5.50%, 1/1/2008 (Insured; AMBAC)........ 5,000,000 5,133,000
Special Facility Revenue (International Terminal) Refunding:
7.50%, 1/1/2005 (Prerefunded 1/1/2000) (c).............................. 905,000 986,314
7.50%, 1/1/2005......................................................... 1,895,000 2,040,631
Chicago Public Buildings Commission, Building Revenue
5.25%, 12/1/2003 (Insured; MBIA).......................................... 5,000,000 5,117,400
Hoffman Estates, Tax Increment Revenue
7.50%, 11/15/2003 (LOC; Union Bank of Switzerland) (d).................... 5,145,000 5,513,999
Illinois:
5.60%, 6/1/2001........................................................... 1,000,000 1,034,700
Sales Tax Revenue 5%, 6/15/2010........................................... 4,610,000 4,470,317
Illinois Development Finance Authority, Community Rehabilitation
(Providers Facility Acquisition) 8.25%, 9/1/2000.......................... 3,805,000 4,017,053
Illinois Educational Facilities Authority, Revenue, Refunding
(Illinois Institute of Technology) 6.60%, 12/1/2009....................... 2,665,000 2,893,311
Illinois Health Facilities Authority, Revenue:
(Catholic Health Co. Addolorata Project) 7.625%, 7/1/1999................. 895,000 943,786
(Central Dupage Health Wyndemere Retirement Community)
6.125%, 11/1/2007 (Insured; MBIA)....................................... 4,400,000 4,675,484
(Evangelical Hospitals):
6.75%, 4/15/2007........................................................ 2,035,000 2,312,289
6.75%, 4/15/2007 (Prerefunded 4/15/2002) (c)............................ 1,055,000 1,166,218
(Ingalls Memorial Hospital Project)
7%, 1/1/2005 (Prerefunded 1/1/2000, Insured; MBIA) (c).................. 6,000,000 6,477,420
(Southern Illinois Hospital Services) 6.50%, 3/1/2007 (Insured; MBIA)..... 4,000,000 4,339,600
(Swedish American Hospital)
7.30%, 4/1/2007 (Insured; AMBAC, Prerefunded 4/1/2000) (c).............. 4,000,000 4,371,440
Illinois Student Assistance Commission, Student Loan Revenue 5.75%, 3/1/2007 3,365,000 3,402,217
Normal, EDR, Refunding (Dayton_Hudson Corp. Project) 6.75%, 11/1/2001....... 3,400,000 3,628,276
Robbins, RRR (Robbins Resource Recovery Partners) 8.375%, 10/15/2010........ 15,000,000 15,424,500
Indiana_5.7%
Boonville Junior High School Building Corp., First Mortgage Revenue, Refunding
6.80%, 7/1/2005........................................................... 3,100,000 3,393,725
Brownsburg School Building Corp., First Mortgage:
5.80%, 8/1/2008 (Insured; CGIC)........................................... 2,650,000 2,784,832
5.90%, 8/1/2009 (Insured; CGIC)........................................... 2,895,000 3,038,939
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
Indiana (continued)
Indiana Bond Bank (Special Hospital Program Hendricks) 6.90%, 4/1/2006...... $ 3,000,000 $ 3,269,550
Indiana Health Facility Financing Authority, HR, Refunding (Clarian Health
Partners Inc.):
5.50%, 2/15/2010.......................................................... 3,000,000 3,007,440
5.50%, 2/15/2011.......................................................... 5,000,000 4,980,500
Indiana Municipal Power Agency, Power Supply Systems Revenue, Refunding
5.70%, 1/1/2006 (Insured; MBIA)........................................... 8,400,000 8,863,008
Indiana Transportation Finance Authority, Airport Facilities LR (United Air):
6.50%, 11/1/2007.......................................................... 2,575,000 2,786,072
6.50%, 11/1/2007 (Prerefunded 11/1/2002) (c).............................. 2,675,000 2,947,850
Indianapolis Local Public Improvement Bond Bank, Refunding:
6.20%, 2/1/2003........................................................... 2,100,000 2,235,681
6.30%, 2/1/2004........................................................... 2,800,000 3,015,236
6.40%, 2/1/2005........................................................... 3,000,000 3,265,380
6.50%, 1/1/2011 (Insured; FSA)............................................ 6,415,000 7,176,652
Knox County Hospital Association, LR 5.65%, 7/1/2008 (Insured; MBIA)........ 4,150,000 4,276,658
Logansport School Building Corp. (First Mortgage)
7.30%, 1/15/2007 (Prerefunded 1/15/2000) (c).............................. 4,750,000 5,158,167
North Montgomery Elementary School Building Corp., Refunding (First Mortgage)
6.50%, 7/1/2006........................................................... 5,665,000 6,276,933
Plymouth, Multi-School Building Corp., Refunding
(First Mortgage-Plymouth Community School) 5.50%, 7/1/2005 (Insured; MBIA) 3,000,000 3,113,790
Purdue University, University Revenue (Purdue University Dormitory System)
6.90%, 7/1/2006 (Insured; AMBAC, Prerefunded 7/1/2001) (c)................ 4,075,000 4,496,803
Westfield, High School Building Corp. (First Mortgage)
5.45%, 7/15/2009 (Insured; AMBAC)......................................... 5,000,000 5,063,350
Iowa_1.3%
Ames, HR (Mary Greeley Medical Center Project) 6.25%, 8/15/2006 (Insured; AMBAC) 4,320,000 4,636,483
Council Bluffs, IDR, Refunding (Cargill, Inc. Project) 7%, 3/1/2007......... 4,400,000 4,836,348
Iowa Student Loan Liquidity Corp., Student Loan Revenue:
6.35%, 3/1/2001........................................................... 3,400,000 3,560,888
6.65%, 3/1/2003 (Insured; Guaranteed Student Loans)....................... 4,900,000 5,149,508
Kentucky_1.5%
Kenton County Airport Board, Airport Revenue (Cincinnati/Northern Kentucky
International)
5.75%, 3/1/2009 (Insured; MBIA)........................................... 3,710,000 3,835,954
Kentucky Property and Buildings Commission, Revenue, Refunding (Project
Number 55)
6.25%, 9/1/2007 (Insured; MBIA)........................................... 9,100,000 10,076,157
Mount Sterling, LR (Kentucky League Cities Funding) 5.625%, 3/1/2003........ 6,500,000 6,641,765
Louisiana_2.3%
Louisiana Correctional Facilities Corp., LR:
5.55%, 12/15/2002 (Insured; FSA).......................................... 14,000,000 14,532,840
5.60%, 12/15/2003 (Insured; FSA).......................................... 5,600,000 5,829,712
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
____________ ____________
Louisiana (continued)
Louisiana Public Facilities Authority, Revenue:
8%, 11/15/2012 (d)........................................................ $ 4,430,000 $ 4,814,568
8%, 11/15/2012 (Prerefunded 11/15/2002) (c, e)............................ 3,635,000 4,072,145
(Louisiana Association of Independent Colleges and Universities) 6.50%, 12/1/2002 2,155,000 2,242,665
Maine_.8%
Maine Educational Loan Marketing Corp., Student Loan Revenue:
5.85%, 11/1/2002.......................................................... 7,000,000 7,245,560
Refunding 6.90%, 11/1/2003................................................ 4,565,000 4,708,934
Massachusetts_3.5%
Boston Industrial Development Financing Authority, Sewage Facility Revenue
(Harbor Electric Energy Project) 7.10%, 5/15/2002......................... 3,825,000 3,985,574
Massachusetts, Refunding:
6.40%, 8/1/2003........................................................... 3,175,000 3,442,367
5%, 11/1/2009............................................................. 5,000,000 4,902,400
Massachusetts, Municipal Wholesale Electric Supply System Revenue, Refunding
6.75%, 7/1/2008........................................................... 5,000,000 5,359,950
Massachusetts, Water Pollution Abatement Revenue (New Bedford Loan Program):
5.50%, 2/1/2008........................................................... 6,950,000 7,167,396
5.60%, 2/1/2010........................................................... 8,255,000 8,430,584
Massachusetts Housing Finance Agency:
Rental Revenue, Refunding:
6.30%, 7/1/2007 (Insured; AMBAC)........................................ 3,190,000 3,319,961
6.35%, 7/1/2008 (Insured; AMBAC)........................................ 3,425,000 3,564,946
6.40%, 7/1/2009 (Insured; AMBAC)........................................ 3,740,000 3,890,610
Residential Development 6.125%, 11/15/2008 (Insured; FNMA)................ 5,000,000 5,179,650
Michigan_4.1%
Detroit, Self-Insurance 5.60%, 5/1/2001..................................... 1,260,000 1,284,759
Greater Detroit Resource Recovery Authority, Revenue, Refunding:
6.25%, 12/13/2007 (Insured; AMBAC)........................................ 7,000,000 7,679,700
Series A 6.25%, 12/13/2008 (Insured; AMBAC)............................... 5,000,000 5,473,800
Series B 6.25%, 12/13/2008 (Insured; AMBAC)............................... 7,755,000 8,489,864
Michigan Hospital Finance Authority, Revenue, Refunding:
(Genesys Health System) 8.10%, 10/1/2013.................................. 10,000,000 11,472,000
(McLaren Obligated Group):
7%, 9/15/2007 (Prerefunded 9/15/2000) (c)............................... 3,670,000 4,013,842
7.375%, 9/15/2008 (Prerefunded 9/15/2001) (c)........................... 6,925,000 7,786,193
Michigan Strategic Fund, SWDR (Genesee Power Station Project) 7.125%, 1/1/2006 7,500,000 7,604,925
Wayne State University, University Revenues, Refunding
5.40%, 11/15/2006 (Insured; AMBAC)........................................ 3,105,000 3,196,070
Mississippi_.3%
Mississippi Development Bank, Special Obligation, Refunding
(Adams County Hospital Revenue Project) 5.75%, 7/1/2010 (Insured; FSA).... 3,445,000 3,532,848
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ ___________
Missouri_1.9%
Phelps City Industrial Development Authority, Industrial Revenue, Refunding
(Excel Corp. Project) 7%, 12/1/2000....................................... $ 4,500,000 $ 4,834,440
Saint Louis, Airport Improvement Revenue, Refunding
(Lambert_Saint Louis International Airport) 6%, 7/1/2005 (Insured; FGIC).. 9,675,000 10,263,627
Saint Louis Municipal Finance Corp., Leasehold Revenue, Refunding:
5.375%, 7/15/2003 (LOC; Sanwa Bank) (d)................................... 5,075,000 5,110,170
5.50%, 7/15/2004 (LOC; Sanwa Bank) (d).................................... 6,835,000 6,906,699
Nebraska_.2%
Albion, IDR, Refunding (Cargill, Inc. Project) 7%, 12/1/2000................ 2,600,000 2,793,232
Nevada_1.7%
Clark County, Passenger Facility Charge Revenue
(Las Vegas McCarran International Airport):
5.95%, 7/1/2005 (Insured; AMBAC)........................................ 6,365,000 6,817,424
5.80%, 7/1/2009 (Insured; MBIA)......................................... 4,250,000 4,402,745
Nevada Muni Bond Bank (Project 57 Thru 64) 5.125%, 9/1/2010 (f)............. 12,225,000 12,050,672
New Jersey_.9%
New Jersey Economic Development Authority, Revenue, Waste Paper Recycling
(Marcal Paper Mills, Inc. Project):
5.75%, 2/1/2004......................................................... 2,815,000 2,863,981
8.50%, 2/1/2010......................................................... 2,930,000 3,330,883
Orange Township 6.60%, 2/1/2007 (Insured; FSA).............................. 5,600,000 6,097,840
New Mexico_1.4%
New Mexico Educational Assistance Foundation, Student Loan Revenue:
6.60%, 3/1/2005........................................................... 9,690,000 10,344,947
6.70%, 3/1/2006........................................................... 8,750,000 9,323,738
New York_11.0%
City University of New York, COP, Refunding (John Jay College) 5.75%, 8/15/2004 5,970,000 6,128,683
Hempstead Town Industrial Development Agency, RRR, Refunding
(American Fuel Company Project):
4.625%, 12/1/2004 (Insured; MBIA)....................................... 5,000,000 4,896,100
4.75%, 12/1/2005........................................................ 4,000,000 3,939,560
New York City:
7.30%, 2/1/2001........................................................... 5,000,000 5,371,550
7.50%, 2/1/2001........................................................... 3,000,000 3,242,580
6.375%, 8/15/2009......................................................... 25,000,000 26,400,500
Refunding:
5.80%, 8/1/2008......................................................... 5,725,000 5,847,229
6.25%, 8/1/2009......................................................... 7,000,000 7,367,430
New York Housing Corp., Growth and Income Sector, Revenue
Zero Coupon, 11/1/2010 (Prerefunded 11/1/2000) (c)........................ 10,000,000 8,691,800
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
New York (continued)
New York City Municipal Assistance Corp., Refunding:
Series H, 5.50%, 7/1/2004................................................. $ 6,000,000 $ 6,233,040
Series G, 6%, 7/1/2005.................................................... 15,000,000 16,095,150
New York State Dormitory Authority, Revenue, Department of Health:
5.50%, 7/1/2010........................................................... 2,000,000 1,965,160
5.625%, 7/1/2011.......................................................... 3,240,000 3,207,244
New York State Dormitory Authority, Mental Health Service Facilities, Revenue, Refunding
6%, 8/15/2006............................................................. 6,940,000 7,274,230
New York State Energy, Research and Development Authority, Service Contract Revenue,
Refunding (Western New York Nuclear Service Center)
5.20%, 4/1/2002 (Insured; CapMac)......................................... 5,085,000 5,182,479
New York State Environmental Facilities Corp., PCR (State Water Revolving Fund)
3.90%, 2/15/2000.......................................................... 2,090,000 2,055,954
New York State Local Government Assistance Corp., Refunding
5%, 4/1/2009 (Insured; AMBAC)............................................. 15,000,000 14,768,700
New York State Mortgage Agency, Homeowner Mortgage Revenue 5.75%, 10/1/2010. 3,000,000 3,047,490
New York State Thruway Authority, Service Contract Revenue (Local Highway and Bridge)
5.75%, 4/1/2006........................................................... 5,625,000 5,789,306
New York State Urban Development Corp., Revenue (Correctional Facilities):
5.25%, 1/1/2010........................................................... 4,520,000 4,358,455
5.25%, 1/1/2011........................................................... 4,760,000 4,563,412
Triborough Bridge and Tunnel Authority, General Purpose Revenue, Refunding
6.75%, 1/1/2009........................................................... 5,100,000 5,831,493
North Carolina_1.3%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding
5.125%, 1/1/2003.......................................................... 7,320,000 7,258,439
North Carolina Municipal Power Agency, Electric Revenue, Refunding (Number 1 Catawba):
6%, 1/1/2004.............................................................. 2,000,000 2,089,300
5.25%, 1/1/2009........................................................... 5,000,000 4,881,150
Northampton County Industrial Facilities and Pollution Control Financing Authority, SWDR
8.05%, 11/1/2004.......................................................... 3,000,000 3,225,780
Ohio_.8%
Cincinnati Student Loan Funding Corp., Student Loan Revenue, Refunding
7.20%, 8/1/2003........................................................... 3,780,000 4,029,140
Franklin County, HR, Refunding (Holy Cross Health Systems) 5.20%, 6/1/2005.. 2,930,000 2,994,431
Lorain, Hospital Improvement Revenue, Refunding (Lakeland Community Hospital,
Inc.)
6.50%, 11/15/2012......................................................... 3,860,000 4,222,801
Oklahoma_.7%
Tulsa Airports Improvement Trust, General Revenue, Refunding (Tulsa
International Airport)
6.125%, 6/1/1999.......................................................... 3,470,000 3,578,854
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
Oklahoma (continued)
Washington County Medical Authority, Revenue, Refunding
(Jane Phillips Medical Center Project) 5.50%, 11/1/2010 (Insured; Connie Lee) $ 6,175,000 $ 6,111,212
Pennsylvania_5.5%
Lehigh County General Purpose Authority, Revenue (Wiley House):
8.65%, 11/1/2004.......................................................... 4,300,000 4,469,291
9.375%, 11/1/2006......................................................... 7,070,000 7,567,587
Pennsylvania, Refunding 5.125%, 9/15/2008 (Insured; AMBAC).................. 10,000,000 10,058,900
Pennsylvania Economic Development Financing Authority, RRR (Northampton Generating):
6.40%, 1/1/2009........................................................... 10,500,000 10,486,455
Refunding 6.75%, 1/1/2007................................................. 7,000,000 7,221,060
Pennsylvania Higher Educational Facilities Authority, Health Services Revenue
(University of Pennsylvania):
Series A 5.60%, 1/1/2010................................................ 10,000,000 10,195,500
Series B 5.60%, 1/1/2010................................................ 4,350,000 4,435,043
Philadelphia Hospitals and Higher Education Facilities Authority, Revenue
(Community Mental Health/Retardation) 8.875%, 6/15/2009................... 13,030,000 14,145,629
Scranton-Lackawanna Health and Welfare Authority, Hospital Facilities Revenue
(Mercy Health Systems):
6.90%, 1/1/2003 (Insured; MBIA)......................................... 3,075,000 3,312,236
6.90%, 1/1/2004 (Insured; MBIA)......................................... 4,330,000 4,664,060
Rhode Island_1.8%
Rhode Island Convention Center Authority, Revenue, Refunding
4.90%, 5/15/2004 (Insured; MBIA, Prerefunded 10/15/2001) (c).............. 5,000,000 5,007,200
Rhode Island Health and Educational Building Corp., Hospital Financing
Revenue, Refunding
(Lifespan Obligation Group):
5.75%, 5/15/2007 (Insured; MBIA)........................................ 4,805,000 5,061,731
5.75%, 5/15/2008 (Insured; MBIA)........................................ 5,560,000 5,827,047
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership Opportunity) 7.30%, 10/1/2008.............................. 4,820,000 5,225,025
(Refunding-Rental Housing Program):
5.65%, 10/1/2007........................................................ 2,175,000 2,205,037
5.65%, 10/1/2008........................................................ 1,350,000 1,361,786
South Carolina_1.6%
Charleston County, Hospital Facilities Improvement Revenue, Refunding
(Medical Society Health Project) 5.50%, 10/1/2005 (Insured; MBIA)......... 7,945,000 8,281,232
Oconee County, PCR, Refunding (Engelhard Corp. Project) 5.375%, 5/1/2006.... 6,000,000 6,112,500
Piedmont Municipal Power Agency, Electric Revenue, Refunding
6.25%, 1/1/2004 (Insured; FGIC)........................................... 4,050,000 4,346,576
York County, PCR (Bowater, Inc. Project) 7.625%, 3/1/2006................... 2,900,000 3,337,378
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
South Dakota_.5%
South Dakota Student Loan Finance Corp., Student Loan Revenue, Refunding
6.45%, 8/1/2006........................................................... $ 6,705,000 $ 6,964,617
Tennessee_.0%
Gatlinburg, COP (Gatlinburg Convention Center) 8.75%, 12/1/1997............. 185,000 189,552
Texas_7.0%
Austin, Independent School District, Refunding 5.60%, 8/1/2019.............. 6,615,000 6,827,408
Brazos, Higher Education Authority Inc., Student Loan Revenue, Refunding
5.875%, 6/1/2004.......................................................... 5,020,000 5,119,446
Ennis IDC, Revenue, Refunding (Cargill Inc., Project) 6.15%, 11/1/2003...... 2,450,000 2,577,718
Gulf Coast Waste Disposal Authority, SWDR, Refunding (Quaker Oats Co. Project)
5.70%, 5/1/2006........................................................... 2,210,000 2,317,693
Harris County, Criminal Justice Center 5.50%, 10/1/2011..................... 3,330,000 3,374,622
Harris County Health Facilities Development Corp., HR, Refunding
(Memorial Hospital System Project) 6%, 6/1/2008 (Insured; MBIA)........... 3,000,000 3,204,360
Harris County Hospital District, Mortgage Revenue, Refunding
7.50%, 2/15/2003 (Insured; AMBAC)......................................... 7,000,000 7,877,520
Houston, Hotel Occupancy Tax Revenue:
7%, 7/1/2003 (Insured; FGIC).............................................. 4,400,000 4,800,180
7%, 7/1/2004 (Insured; FGIC).............................................. 1,525,000 1,663,699
Refunding 6%, 7/1/2005 (Insured; FSA)..................................... 5,750,000 6,144,105
North Central Health Facility Development Corp., Revenue 7.55%, 5/15/2008 (e) 13,000,000 14,075,620
North Texas Higher Education Authority, Student Loan Revenue:
7%, Series B, 4/1/2002 (Insured; AMBAC)................................... 4,250,000 4,465,390
7%, Series E, 4/1/2002 (Insured; AMBAC)................................... 4,250,000 4,465,390
Rio Grande Consolidated Independent School District, Public Facilities, LR
6.40%, 7/15/2003.......................................................... 4,000,000 4,078,600
Rio Grande Valley Health Facilities Development Corp., HR, Refunding
(Valley Baptist Medical Center) 6.25%, 8/1/2006 (Insured; MBIA)........... 5,100,000 5,501,013
South Texas Higher Education Authority, Student Loan Revenue, Refunding
5.30%, 12/1/2003.......................................................... 5,350,000 5,358,720
Tarrant County Health Facilities Development Corp., Health Systems Revenue
(Harris Methodist Health Systems) 6%, 9/1/2010............................ 7,725,000 7,678,882
Texas State College, Student Loan:
6%, 8/1/2005.............................................................. 2,130,000 2,274,201
6%, 8/1/2006.............................................................. 2,500,000 2,676,175
Texas Water Resources Financing Authority, Revenue 7.30%, 8/15/1998......... 2,465,000 2,546,517
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
Utah_2.4%
Carbon County, SWDR:
(Refunding_Sunnyside Cogeneration Project) 9%, 7/1/2006 (g)............... $ 9,750,000 $ 7,200,765
(Sunnyside Cogeneration Association) 7.50%, 7/1/2007 (g).................. 7,000,000 4,962,090
Intermountain Power Agency, Power Supply Revenue, Special Obligation
6.50%, 7/1/2010 (Insured; MBIA)........................................... 5,200,000 5,832,996
Utah Board of Regents, Student Loan Revenue:
6.25%, 11/1/2003 (Insured; AMBAC)......................................... 3,000,000 3,142,410
7.05%, 11/1/2003 (Insured; AMBAC)......................................... 5,000,000 5,341,050
6.35%, 11/1/2004 (Insured; AMBAC) (h)..................................... 3,000,000 3,167,490
6.45%, 11/1/2005 (Insured; AMBAC)......................................... 3,000,000 3,183,720
Virginia_1.5%
Big Stone Gap Redevelopment and Housing Authority, Correctional Facility LR
(Wallens Ridge Development Project) 6%, 9/1/2007.......................... 4,000,000 4,315,800
Fairfax County Economic Development Authority, Educational Facilities Revenue
(George Mason University Educational Foundation):
6.50%, 11/15/2002....................................................... 2,000,000 2,067,460
6.95%, 11/15/2002....................................................... 5,360,000 5,665,198
Virginia Housing Development Authority, Commonwealth Mortgage:
6.05%, 1/1/2004........................................................... 4,400,000 4,533,672
6.15%, 1/1/2005........................................................... 4,400,000 4,541,064
Washington_6.6%
Chelan County Public Utility District Number 1, Consolidated Revenue
(Chelan Hydroelectric) 7.55%, 7/1/2062.................................... 6,515,000 7,121,221
Clark County, Washington Public Utility District, Electric Revenue, Refunding
6.30%, 1/1/2004 (Insured; FGIC)........................................... 3,160,000 3,362,556
King County, Series D:
4.95%, 12/1/2001.......................................................... 4,630,000 4,678,337
5.20%, 12/1/2003.......................................................... 2,525,000 2,568,152
5.40%, 12/1/2006.......................................................... 4,000,000 4,104,640
5.60%, 12/1/2009.......................................................... 4,500,000 4,605,705
5.70%, 12/1/2010.......................................................... 3,225,000 3,300,336
Port Seattle, Revenue 6.50%, 11/1/2005...................................... 3,000,000 3,226,680
Washington Health Care Facilities Authority, Revenue:
(Childrens Hospital and Medical Center) 6.125%, 10/1/2007 (Insured; FGIC). 4,000,000 4,248,000
(Refunding-Sisters of Providence):
5%, 10/1/2007 (Insured; AMBAC).......................................... 5,500,000 5,473,325
5.40%, 10/1/2010 (Insured; AMBAC)....................................... 3,000,000 3,005,880
(Refunding_Yakima Valley Memorial Hospital) 7.875%, 1/1/2003.............. 3,300,000 3,442,329
Washington Housing Finance Commission, SFMR
6.85%, 7/1/2011 (Insured: FNMA, GNMA)..................................... 3,445,000 3,629,583
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
Washington (continued)
Washington Public Power Supply Systems, Revenue, Refunding
(Nuclear Project Number 1):
7.70%, 7/1/2002......................................................... $ 16,745,000 $ 18,790,569
6.60%, 7/1/2004......................................................... 2,500,000 2,692,675
(Nuclear Project Number 2) 7.25%, 7/1/2006 (Insured; FSA)................. 6,000,000 6,928,380
(Nuclear Project Number 3) 6%, 7/1/2007 (Insured; AMBAC).................. 9,720,000 10,402,636
Wisconsin_1.6%
Carlton, PCR, Refunding (Wisconsin Public Service Corp.) 6.125%, 10/1/2005.. 5,000,000 5,516,650
Wisconsin Health and Educational Facilities Authority, Revenue:
(Aurora Medical Group, Inc.) 6%, 11/15/2011 (Insured; FSA)................ 3,500,000 3,743,355
Refunding:
(Luther Hospital Project) 6.125%, 11/15/2006............................ 3,500,000 3,734,220
(Wheaton Franciscan Services, Inc.) 6.50%, 8/15/2007 (Insured; MBIA).... 3,000,000 3,209,070
Wisconsin Housing and Economic Development Authority, Housing Revenue
5.30%, 11/1/2006.......................................................... 6,000,000 5,942,760
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $1,270,572,239)................. $1,322,611,930
===============
Short-Term Municipal Investments_4.9%
California_.7%
California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas and Electric)
VRDN 3.90% (LOC; Bank of America) (d, i).................................. $ 10,000,000 $ 10,000,000
Florida_.3%
Broward County Housing Finance Authority, MFHR (Sanctuary Apartment Project) VRDN
3.95% (LOC; PNC Bank) (d, i).............................................. 4,200,000 4,200,000
Massachusetts_.2%
Massachusetts Health and Educational Facilities Authority, Revenue
(Capital Assets Program) VRDN 4% (Insured; MBIA) (i)...................... 2,200,000 2,200,000
Maryland_.5%
Northeast Waste Disposal Authority, RRR, Refunding (Hartford County
Resources) VRDN
3.80% (Insured; AMBAC) (i)................................................ 5,000,000 5,000,000
Prince Georges County Housing Authority, Mortgage Revenue, VRDN
3.97% (LOC; Bankers Trust Company) (d, i)................................. 2,500,000 2,500,000
Michigan_1.1%
Midland County Economic Development Corp. LOR (Dow Chemical Company Project)
VRDN 4.10% (i)............................................................ 15,100,000 15,100,000
New Jersey_.3%
New Jersey Economic Development Authority, Water Facilities Revenue
(United Water New Jersey Project) VRDN 3.80% (Insured; AMBAC) (i)......... 3,600,000 3,600,000
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Short-Term Municipal Investments (continued) Amount Value
___________ ___________
New Mexico_.5%
Farmington, PCR, Refunding (Arizona Public Service Company) VRDN
4% (LOC; Barclays Bank) (d, i)............................................ $ 7,300,000 $ 7,300,000
New York_.4%
New York City Municipal Water Facilities Authority, Water and Sewer Revenue, Refunding
VRDN 4% (Insured; FGIC) (i)............................................... 1,550,000 1,550,000
New York State Energy, Research and Development Authority, PCR
(Niagara Mohawk Power Project) VRDN 4.20% (LOC; Toronto-Dominion Bank) (d, i) 3,700,000 3,700,000
Texas_.4%
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Company) VRDN
4.25% (Insured; AMBAC) (i)................................................ 1,900,000 1,900,000
Gulf Coast Waste Disposable Authority, PCR, Refunding (Exxon Project) VRDN 4.05% (i) 3,000,000 3,000,000
U.S. Related_.5%
Puerto Rico Commonwealth Government Development Bank, Refunding, VRDN
2.95% (Insured; Credit Suisse) (i)........................................ 7,500,000 7,500,000
______________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $67,550,000)................... $ 67,550,000
===============
TOTAL INVESTMENTS_100.0%
(cost $1,338,123,050)..................................................... $1,390,161,930
===============
</TABLE>
<TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CGIC Capital Guaranty Insurance Company LOR Limited Obligation Revenue
COP Certificate of Participation LR Lease Revenue
EDR Economic Development Revenue MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GNMA Government National Mortgage Association RRR Resources Recovery Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
IDC Industrial Development Corporation SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch (j) or Moody's or Standard & Poor's Percentage of Value
____ ________ ___________________ ____________________
AAA Aaa AAA 40.7%
AA Aa AA 18.9
A A A 16.7
BBB Baa BBB 8.7
BB Ba BB 1.4
F1+,F-1 MIG1, VMIG1 & P1 SP1, A1 4.9
Not Rated (k) Not Rated (k) Not Rated (k) 8.7
________
100.0%
========
</TABLE>
Notes to Statement of Investments:
(a) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At May 31,
1997, this security amounted to $5,360,150 or .4% of net assets.
(b) On May 14, 1997, the owners/developers of the power project filed
for protection under the Federal Bankruptcy Code. Subsequent to May 31,
1997, the accrual of interest related to this security was discontinued.
(c) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the tax exempt issue and to retire the bonds in full at the
earliest refunding date.
(d) Secured by letters of credit.
(e) Inverse floater security_the interest rate is subject to change
periodically.
(f) Purchased on a delayed-delivery basis.
(g) Non-income accruing security.
(h) Wholly held by the custodian in a segregated account as collateral
for delayed-delivery securities.
(i) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(j) Fitch currently provides creditworthiness information for a limited
number of investments.
(k) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1997
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $1,338,123,050 $1,390,161,930
Interest receivable........................ 22,611,039
Receivable for shares of Common Stock subscribed 95,500
Prepaid expenses........................... 41,716
_______________
1,412,910,185
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 749,235
Cash overdraft due to Custodian............ 4,829,259
Payable for investment securities purchased 19,408,505
Payable for shares of Common Stock redeemed 211,236
Accrued expenses........................... 137,329
_______________
25,335,564
_______________
NET ASSETS.................................................................. $1,387,574,621
================
REPRESENTED BY: Paid-in capital............................ $1,332,556,710
Accumulated undistributed investment income_net 190,338
Accumulated net realized gain (loss) on investments 2,788,693
Accumulated net unrealized appreciation (depreciation)
......on investments_Note 4 52,038,880
_______________
NET ASSETS.................................................................. $1,387,574,621
================
SHARES OUTSTANDING
(300 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED).............. 100,191,584
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $13.85
========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1997
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $83,686,592
EXPENSES: Management fee_Note 3(a)................... $ 8,522,751
Shareholder servicing costs_Note 3(b)...... 1,480,527
Custodian fees............................. 103,039
Registration fees.......................... 81,716
Professional fees.......................... 74,840
Prospectus and shareholders' reports....... 71,259
Directors' fees and expenses_Note 3(c)..... 70,978
Loan commitment fees_Note 2................ 8,988
Miscellaneous.............................. 78,762
_______________
Total Expenses......................... 10,492,860
_______________
INVESTMENT INCOME_NET....................................................... 73,193,732
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 7,267,584
Net unrealized appreciation (depreciation)
on investments 15,426,694
_______________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 22,694,278
_______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $95,888,010
================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1997 May 31, 1996
________________ ________________
<S> <C> <C>
OPERATIONS:
Investment income_net................................................. $ 73,193,732 $ 79,130,647
Net realized gain (loss) on investments............................... 7,267,584 11,398,825
Net unrealized appreciation (depreciation) on investments............. 15,426,694 (36,784,906)
________________ ________________
Net Increase (Decrease) in Net Assets Resulting from Operations..... 95,888,010 53,744,566
________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................. (73,003,394) (79,130,647)
Net realized gain on investments...................................... (11,356,489) (2,766,133)
________________ ________________
Total Dividends..................................................... (84,359,883) (81,896,780)
________________ ________________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold......................................... 444,191,569 692,235,889
Dividends reinvested.................................................. 62,367,051 60,507,179
Cost of shares redeemed............................................... (597,852,386) (826,761,167)
________________ ________________
Increase (Decrease) in Net Assets from Capital Stock Transactions... (91,293,766) (74,018,099)
________________ ________________
Total Increase (Decrease) in Net Assets........................... (79,765,639) (102,170,313)
NET ASSETS:
Beginning of Period................................................... 1,467,340,260 1,569,510,573
________________ ________________
End of Period......................................................... $1,387,574,621 $1,467,340,260
============== =================
UNDISTRIBUTED INVESTMENT INCOME_NET..................................... $ 190,338 ___
________________ ________________
Shares Shares
________________ ________________
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................... 32,137,077 49,389,916
Shares issued for dividends reinvested................................ 4,494,575 4,311,276
Shares redeemed....................................................... (43,184,362) (58,922,345)
________________ ________________
Net Increase (Decrease) in Shares Outstanding....................... (6,552,710) (5,221,153)
============== =================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Year Ended May 31,
__________________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $13.75 $14.02 $13.84 $14.31 $13.96
_______ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .71 .72 .75 .76 .81
Net realized and unrealized gain (loss)
on investments............................ .20 (.24) .24 (.31) .66
_______ _______ _______ _______ _______
Total from Investment Operations....... .91 .48 .99 .45 1.47
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net....... (.70) (.72) (.75) (.76) (.81)
Dividends from net realized gain on investments (.11) (.03) (.06) (.16) (.31)
_______ _______ _______ _______ _______
Total Distributions.......................... (.81) (.75) (.81) (.92) (1.12)
_______ _______ _______ _______ _______
Net asset value, end of period.............. $13.85 $13.75 $14.02 $13.84 $14.31
======= ======= ======== ======= =========
TOTAL INVESTMENT RETURN....................... 6.80% 3.44% 7.54% 3.13% 10.88%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .73% .71% .73% .70% .71%
Ratio of net investment income
to average net assets...................... 5.10% 5.14% 5.52% 5.22% 5.68%
Portfolio Turnover Rate..................... 46.67% 48.70% 42.18% 36.27% 60.14%
Net Assets, end of period (000's Omitted) $1,387,575 $1,467,340 $1,569,511 $1,724,126 $1,703,674
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Intermediate Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to provide
the maximum amount of current income exempt from Federal income tax as is
consistent with the preservation of capital. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. is the
distributor of the Fund's shares which are sold to the public without a sales
charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended May
31, 1997, the Fund did not borrow under the Facility.
NOTE 3_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .60 of 1% of the value of the Fund's
average daily net assets and is payable monthly. However, pursuant to the
court
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
approved settlement of previously disclosed litigation, commencing October
15, 1988 the Manager has agreed to make payments to the Fund for 10 years,
ranging from $0 to $1 million per year depending upon average daily net
assets of the Fund. The management fee for the period ended May 31, 1997 was
reduced by $90,000 pursuant to the settlement of litigation.
(B) Under the Shareholder Services Plan, the Fund reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not
to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended May 31, 1997, the Fund was charged an aggregate of
$630,212 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $542,187 during the period ended May 31, 1997.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) Effective November 4, 1996, a .10% redemption fee is charged on
certain redemptions of Fund shares (including redemptions through use of the
Fund Exchanges service) where the shares being redeemed were issued
subsequent to a specified effective date and the redemption or exchange
occurs fifteen days following the date of issuance. During the period ended
May 31, 1997, redemption fees amounted to $9,888.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended May 31, 1997,
amounted to $648,183,695 and $782,633,551, respectively.
At May 31, 1997, accumulated net unrealized appreciation on investments
was $52,038,880, consisting of $58,849,498 gross unrealized appreciation and
$6,810,618 gross unrealized depreciation.
At May 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Intermediate Municipal Bond Fund, Inc., including the statement of
investments, as of May 31, 1997, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 1997 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Intermediate Municipal Bond Fund, Inc. at May 31, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
July 3, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1997:
_ all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax), and
_ the Fund hereby designates $.0916 per share as a long-term capital gain
distribution of the $.1105 per share paid on December 5, 1996.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS INTERMEDIATE MUNICIPAL
BOND FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 947AR975
[Dreyfus logo]
Registration Mark
Intermediate
Municipal Bond
Fund
Annual Report
May 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC. AND
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS
LEHMAN BROTHERS INTERMEDIATE
PERIOD 10-YEAR MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND
5/31/87 10,000 10,000
5/31/88 10,841 10,672
5/31/89 11,905 11,577
5/31/90 12,781 12,334
5/31/91 14,110 13,480
5/31/92 15,421 14,755
5/31/93 17,321 16,361
5/31/94 17,915 16,873
5/31/95 19,524 18,145
5/31/96 20,447 18,770
5/31/97 22,119 20,046
*Source: Lehman Brothers
