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Monday, November 10, 2014

Corporation Bank net profit zooms

Corporation Bank recorded a net profit of Rs 160.51 crore in the second quarter of 2014-15 as against a net profit of Rs 15.48 crore in the corresponding period of the previous fiscal, registering a growth of 937 per cent.

Addressing presspersons here on Friday, SR Bansal, Chairman and Managing Director of Corporation Bank, said that issues such as reducing operational expenses, manpower rationalisation, and space audits have contributed. The bank registered this growth by “avoiding the avoidable expenses,” he said. Explaining some of these measures, Bansal said operational expenses have come down from 19.99 per cent to 13.60 per cent during the period. The bank has a separate vertical to monitor operational expenses, he said.

Giving another example, Bansal said the rationalisation of manpower in security staff would help save around
Rs 22.79 crore annually.

Space audit

Stating that the bank had done a space audit, he said it had maximum area per branch in the country. Many rental agreements were renegotiated.

He said earlier 10.54 lakh customers of the bank were using the ATMs of other banks.

“Now 1.33 lakh customers of other banks are using our ATMs. This is also helping us,” he said. Corporation Bank has 2,746 ATMs.

Asset restructuring

During the quarter, gross NPAs increased to 4.45 per cent (3.17 per cent), and the net NPAs to 2.92 per cent (2.20 per cent). The bank did not sell NPAs to ARCs (asset reconstruction companies) at ‘throwaway’ prices.

The bank also did not go in for technical write-offs to reduce gross NPAs. The bank has made efforts to persuade the borrowers and recover more, he said.

NPA recoveries

During the second quarter of 2014-15, NPA recoveries of the bank stood at
Rs 182.93 crore (Rs 107.33 crore), and upgradation of NPAs at Rs 244.67 crore (Rs 104.71 crore). Net interest income was at Rs 983.10 crore (Rs 909.87 crore), and non-interest income at Rs 288.94 crore (Rs 339.66 crore).

On Friday, the Corporation Bank scrip closed at
Rs 336.60 on the BSE, down 0.16 per cent, against the previous close of Rs 337.15.

Source : The Hindu


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